Estate Agents want to see our Agreement in Principle - normal?

martin2345uk

Hi guys,

We have put in an offer of 194k on a house that was originally 205k and was then reduced to 199k... the offer was accepted (yay!).

We have an agreement in principle from my bank (for £225,000 - though this is the max they would be prepared to lend, and definitely not what we could realistically pay every month!)

The agent called today and said I need to scan/send them a copy of this agreement in principle.

Obviously my worry is that they will see the amount and suggest to the seller that they demand more money or something...

Is this common practice? Should I send it with a statement about how it's not an amount we could afford?

Might be overthinking but it all scares me!:(

Any advice gratefully received

braun_2

You could get another mortgage in principle for the 194k offered

Have you appointed a solicitor yet? Get your solicitor to confirm and write to the EA and tell them you are able to pay.

Riggster

The vendor's EA rightly wants to confirm that you can afford the property in question.

However, this is more than likely an excuse to offer you "a better deal" from their in-house mortgage advisor.

If the vendor accepts your offer they are well happy.

Play lip service to their EA and then then tell them to do one and deal with your solicitor.

bluedrop

It's normal. They try every possible trick to get your full financial details, see what's the max you can afford and then play it against you when you start offering,

Refuse to give it to them. Say your solicitor will confirm your financial situation once an offer has been accepted.

Edit: sorry, I just noticed that u said your offer has been accepted. Show your aip, deposit etc to your solicitor and ask him to have a word with the EA.

moneyistooshorttomention

My estate agent always tells me the basic financial position of someone before they come to view, ie:

- mortgage agreed in principle and living with parents
- mortgage agreed in principle and renting
- sold their place and living in rented (with their house money in the bank)
- investor
- selling existing place and mortgage agreed in principle for balance

have been the ones I've been told to date - so obviously they are doing as I would expect and ascertaining that the viewer has the funds they require.

On the other hand - I will be buying my next place from the money tied-up in my current place and I have a feeling that estate agents in my chosen area are checking out the price mine is being marketed at to establish that I can afford the ones I am looking at.

Dan-Dan

when we receive an offer there is no way on gods earth i will remove from sale until my EA has reassured me 110% that the potential purchaser has proved they have the funds , i am assuming from their point of view , this will be done with a quick email from the buyers broker or solicitor to the EA , because thats how it will be done our side when we buy in turn

bretts

I was in a similar situation as yours, my EA asked me for AIP so I spoke to my solicitor and he said I should not give it to them as it opens your financial position to them and anyways you are not legally obliged to do so, I suggest you get AIP for 194k which is the price of the house and also ask your solicitor to speak with EA as once the solicitor confirms you have finance in place the EA could be in a better position to proceed knowing that you are a serious buyer.

kkgree1

We were in a similar position and just got the building society to reissue an AIP for the offer amount.

It seems to be common place if you want the property taken off the market.

yorkshire_terrier_owner

I went about things slightly differently - I gave a copy of my AIP to the estate agent who was selling my house (therefore acting for me). Then they negotiated my offer on the property I wanted to buy with that estate agent. They were basically able to say "we have proof she's good for it, but the document is private". That was enough for the EA who was selling the property I was buying. I had a very good EA who I trusted, otherwise wouldn't have done it this way.