FTB - pressure to use estate agent's mortgage broker and solicitor

Bantex_2

chris_m wrote: »

EA; "They're offering £165K"
Advisor; "Oh, looking at their finances, they could got to £185K easily"
EA; "Ah right, we'll see if we can push them to go higher"

Where's the problem in that?
:mad:

or am I just being cynical?

So if the head of a large corp buys a sandwich, would the seller expecting him to pay £3,000 because he can afford it?

chris_m

Bantex wrote: »

So if the head of a large corp buys a sandwich, would the seller expecting him to pay £3,000 because he can afford it?

There's a world of difference between sarnie sellers selling sarnies at fixed prices and estate agents pitching for as much as they can on behalf of the seller.

thequant

Eponym wrote: »

Hi all

I made an offer on a property on Saturday for £118k (asking price £130k) with the expectation of hopefully ending up around £125k.

The agents have rang me today to say they have received at least one other offer and are trying to get a sense of where everyone is in terms of interest before they submit to the vendor and recommended a buyer. I have made my position clear:

• I'm a FTB so can move as quickly or slowly as the vendors want, and I live at home not in rented
• I have a 25% deposit
• I have a solicitor in mind following having got quotes
• I have an AIP.

My mortgage broker recommended getting an AIP from Halifax as it shows up as a credit search not a credit application, and would show vendors I can get the money. The idea was that when I have an offer accepted, I go back and we do a new search for the best deal at that time, as the best deal when he first looked would not necessarily still be the best deal.

The Estate Agent told me they do a free legal fees deal, where if you use their in-house mortgage broker and their recommended solicitor, they will give me a discount of up to £1000 off the legal fees. They also don't charge for legal work if it all falls through, though I would have to pay for searches and other non-refundable expenses.

My natural inclination is obviously that this is a bad idea, but given the competition for the property I want to show willing and it might actually help to show that I have good finances in place.

If I don't use their services, might that affect the advice they give to the vendor? I know I'm entitled to use any solicitor and mortgage broker I want but I just wonder if this might grease the wheels, so to speak. The discount would be nice but isn't the major factor at play.

Any thoughts? Thanks!

This sounds suspiciously like the sequence group, AKA barnard Marcus, manners & Harrison or whatever they are called in your area of the country.


no matter how tempting this £1k might seem, but TRUST ME YOU PAY MANY, MANY MANY TIMES MORE THAN THAT OVER THE LIFETIME OF YOUR MISSOLD MORTGAGE.


and if they come back with any !!!!!!!! about being able to talk the vendor around into accepting your offer if you use their services, walk away, they will soon accept your offer.


Seriously it's about time EA's were banned from offering legal and mortgage services because mugs like the OP will fall for it.

Bantex_2

thequant wrote: »

This sounds suspiciously like the sequence group, AKA barnard Marcus, manners & Harrison or whatever they are called in your area of the country.


no matter how tempting this £1k might seem, but TRUST ME YOU PAY MANY, MANY MANY TIMES MORE THAN THAT OVER THE LIFETIME OF YOUR MISSOLD MORTGAGE.


and if they come back with any !!!!!!!! about being able to talk the vendor around into accepting your offer if you use their services, walk away, they will soon accept your offer.


Seriously it's about time EA's were banned from offering legal and mortgage services because mugs like the OP will fall for it.

Why assume the EAs broker cannot offer the best deal?
Seems rather blinkered.
Get the info and compare is the answer.

Bantex_2

chris_m wrote: »

There's a world of difference between sarnie sellers selling sarnies at fixed prices and estate agents pitching for as much as they can on behalf of the seller.

So you are saying that rich people always pay more for non fixed price items. Absolute rubbish. Idiots overpay whatever their income is.

Eponym

I've now had my offer accepted and they want an answer on whether I'll go for the in-house package or not.

I asked the agent how stamp duty worked with taking the money off the purchase price and he said he didn't know as he'd never been asked that before!

I felt a little more comfortable with the independent broker I saw and I like the idea of being able to pop in and see my conveyancer. However, this deal would save me a reasonable amount of money - approx £500 overall, plus the reduction in stamp duty and purchase price which will save me more over the long run. I can always check that any mortgage which is suggested is actually the best deal for me.

I don't feel tied to them for re-mortgage as the broker I was originally going to use is paid by commission so I could always go to him or do it myself.

Any more thoughts? I'm a bit torn!

drdpj

When you use the in-house services, the agent will get a kick back commission. That should tell you part/most of what you need to know.

There are several people who have been quite stung by extra fees/costs/irrelevant searches that suddenly crop up when using one of these in-house conveyancing sweatshops - certainly if anything tricky appears they're generally not going to be the quickest in working it out.

Add to all of that there's a *clear* conflict of interest here, even if they say they're all "independent parts of the same umbrella company", you must ask yourself how far you actually believe that to be the case? One EA trying to get our business for selling openly told us that the in house MA would tell him how much clients could afford and that would help us get the maximum for the property. Suffice to say we didn't use them.

Imagine using the in-house MA, then two days later the agent calls you saying they've had an offer of a grand under the maximum the MA says you can borrow. You have no way of knowing whether this is true or not. Your option will be either to offer the maximum you can and cross your fingers *or* gamble on it being a lie and see what happens. Either way, do you want the stress, or even the possibility of the stress?

You should find independent professionals that you feel comfortable with, then you'll never be questioning ulterior motives. The agent (especially one who works for a chain) rarely has your interests at heart.

That's my two pennies anyway.

Eponym

Many thanks. You make some good points there!

I think I will refuse their deal. I just liked the sound of saving a bit of money, especially since I've paid slightly more than I wanted to for the house!

Chyna81

My opinion in regards to Estate Agents which offer a £1000 incentive, stay away or play them at there own game.

I have recently just missed out on a property and honestly believe it was due to me not going with EA £1000 incentive. I placed a relatively high bid and the EA advised he was going to advise the Vender, shortly after I had a call back saying surprise surprise a buyer who went with there £1000 incentive scheme had place higher offer. Complete and utter rubbish.

Although I understand it is a legal requirement I double the EA even advised the Vendor of my higher offer. I was actually thinking of writing a letter to the Vendor however thought better of it. Plenty more properties.

Act as if your interested to secure the STC don't sign any paper work.

The greed of the Estate Agent is unbelievable!!! As a buyer I will stay away from these Estate Agents from now on.

Good Luck

Chyna81

Sorry I have just seen your post and your offer has been accepted. Definitely go with your own broker and conveyancer hands down.