Estate agent due diligence?

Gangaweed

We've just put an offer in on a house in London.

The estate agent has said that they do financial due diligence on the vendor prior to putting the offer forward. They have booked me in to see there mortgage chap for a chat at the weekend.

I already have a mortgage agreed in principle and it seems to me that this is a fishing trip in order to extract as much cash from me as possible (but I am Mr Skeptical).

Is this normal practice?

cloo

It's normal for them to push you to use their preferred mortgage guy, but I wouldn't go to see them if you have a mortgage already arranged. Not sure what this has to do with due diligence on the vendor... if you mean on the buyer (you) then I don't see why you have to see their mortgage guy, although they will want to see proof of funds etc, but I expect they can do that by other means. Sounds like an excuse to try to sell you a mortgage to me.

G_M

Yes normal practice.

Yes fishing trip.

You do not need to see their mortgage adviser if you have funding sorted. Don't waste your time and expose yourself to sales hype.

I would also not reveal your full financial position. This simply means they no exactly how much pressure they can exert when it comes to negotiating the price of a property.

Teveal enough to satisfy them you can afford the offer you have made, and nothing more.

Gangaweed

So I should cancel the appointment and suggest that I show them paperwork to satisfy that we are able to cough up the sale?

Noctu

Yep - all they need to see is the mortgage in principle. Just tell them you're happy with your current mortgage advice arrangements.

Gonzo1987

Most vendor's will want to know that the person making the offer can actually afford it.

I don't see the problem, got see the in house adviser he can recommend you as being a suitable candidate for the property and you don't have to take up their services, alternatively ask your own broker to speak to the agent to confirm you are good to go.

Gangaweed

Thanks, I have a letter from the broker so will be able to show this.

Gangaweed

Update: I've emailed the agent last night cancelling Saturday's appointment, but showing them the letter from my broker with the agreement in principle.

No reply.

No call.

Any suggestions as to how I should play this?

DRP

Gangaweed wrote: »

Update: I've emailed the agent last night cancelling Saturday's appointment, but showing them the letter from my broker with the agreement in principle.

No reply.

No call.

Any suggestions as to how I should play this?

I think you should (have) call(ed) them rather than email.

In any case you'll need to ring them to find out about the response to your offer anyhow.

Gangaweed

DRP wrote: »

I think you should (have) call(ed) them rather than email.

In any case you'll need to ring them to find out about the response to your offer anyhow.

I needed to email to include the agreement in principle.

How long should I wait before calling RE the offer? Don't want to appear to desperate.

DRP

Gangaweed wrote: »

I needed to email to include the agreement in principle.

How long should I wait before calling RE the offer? Don't want to appear to desperate.

I think the games about appearing too desperate are not worth thinking about - i would ring up and find out. Just say you are booking viewings for the weekend so you would appreciate feedback/response.