What to tell estate agent about my budget?

DepositSaver

I now have a mortgage decision in principle and am planning to visit various estate agents over the weekend. I could do with some advice about what to tell them about my budget please? I keep reading that I shouldn't tell them exactly what I can afford, because that might lead them to telling a vendor I can afford more than I offer, which makes sense.

But I obviously need to tell them something about price range so I get to view appropriate properties, so what do I tell them? How do I tell them enough that I get to view the right priced properties, and don't get offered lots that are over budget, without telling them that exact figure?

Or do I ignore all the advice I've seen about seeing the EA in person and establishing a good relationship with them so I get to hear about newly on sale properties ASAP, and just phone up and ask to view specific properties as and when I see them advertised?

Thank you in advance

fishpond

"so what do I tell them?"
Nothing

DepositSaver

fishpond wrote: »

"so what do I tell them?"
Nothing

So I just tell them what sort of property I'm looking for, let them offer me lots that are £25k over budget and keep saying no to them all? Isn't that going to annoy them somewhat?

Jonboy_1984

You are looking to arrange a contract that will ensure they receive a large amount of money, therefore it is their problem if they get annoyed not yours.

Equally just because the advertised asking price is £25K over your agreement in principle does not mean it is necessarily out of budget.

rxp

fishpond wrote: »

"so what do I tell them?"
Nothing

Good advice generally I'm sure, but it does depend what sort of market you're in. I don't think this approach would at the moment in London, for example, where there are loads of willing buyers and you need to fight to get EAs to let you know about properties before they are widely advertised. In that situation, being coy is no help at all! Anyway, your budget does not equal what you are willing to pay for any given house - that will depend on how much you love it, the work that needs doing etc. etc.

DepositSaver

Jonboy_1984 wrote: »

You are looking to arrange a contract that will ensure they receive a large amount of money, therefore it is their problem if they get annoyed not yours.

Equally just because the advertised asking price is £25K over your agreement in principle does not mean it is necessarily out of budget.

But is an annoyed EA going to make sure I'm told about my perfect flat the minute it goes on the market?

I take your point about advertised asking price not necessarily meaning it's out of budget, but in my case as my upper limit is £125000 I'd surely have to very lucky indeed to get something advertised at £150000 for £25000 less?

Mergic

I disagree. I think building up a good relationship with an agent and making it clear exactly what you're looking for is really important. Giving a reasonable sized price band will demonstrate that the price you're willing to pay depends on the property, not what you can afford. We gave agents a 'CV' style sheet with prioritised areas we were interested in, essential features, desirable features and a broad price range (stopping short of our maximum; they'll always offer above your budget anyway). This resulted in a couple of agents contacting us with good matches as they came on the market. Unfortunately, it also meant we had some hopeless agents (Bidgfords being the worst) who contacted us with hopelessly inappropriate houses and even failing to show us houses we requested to see. But you can't win them all I guess.

Negotiating a good price I feel it's far more about what you say when you make an offer that will determine what the estate agent will think you're willing to pay for a property. If they're on 2% commission (and that's likely to be the agency, not the agent themselves) then a £5000 difference in offer is only worth £100 commission (which on a £120k offer isn't that much). For an agent to maximise the chance of a successful sale, they should try to keep both parties happy. That means making the seller feel that they have tried to negotiate a good price from the buyer, but also convincing the buyer that they are getting a good deal. As a buyer, it's about deciding what you feel you're willing to pay for a property and then negotiating the best price. If you don't believe a property is worth your budget then don't offer it and make it clear to the agent you're not going higher.

MaxTheCat

rxp wrote: »

Good advice generally I'm sure, but it does depend what sort of market you're in. I don't think this approach would at the moment in London, for example, where there are loads of willing buyers and you need to fight to get EAs to let you know about properties before they are widely advertised. In that situation, being coy is no help at all! Anyway, your budget does not equal what you are willing to pay for any given house - that will depend on how much you love it, the work that needs doing etc. etc.

Rubbish, I've just bought a house in London and I didn't disclose my budget to any estate agents just told them I had a mortgage in principal and could fund the difference. The fact that I could have spent another 200k was none of their business.

Trig3

You don't have 'relationships' with estate agents, these creatures only care about their commission & nothing else.

calicocat

I got on with my EA brilliantly, and she was really good. I did however mix it up a bit and never gave a maximum that I would spend. I gave lots of different figures for different types of property I was interested in looking at. However I didn't have a definite idea in place as to the house I wanted so was possibly easier to do this.

I never actually said my max though as figured it was her job to push me past this and up my mortgage or deposit.

It paid in my case to have a good 'working' relationship with my AE though, can't fault her at all...but some are sharks, never show your actual hand.


Edit....... I got first call on a few properties, and ended up with mine now due to that happening. Could have been it took me 9 months though and she wanted rid of me......

Riggster

Don't tell them anything.