Estate Agent "vetting"

HereBeDragons_2

I just got off the phone from an estate agent with whom I was trying to register my details in order to view a property.

For the second time in a week when speaking to an agent as a new buyer, I was asked who my AIP was with and how much deposit I have to put down. I saw no need to disclose this - I'm always extremely wary of agents trying to "vet" me.

When I queried why they needed this information at this stage, the first agent said it was because demand is high, and by having the full picture on each buyer he can make the best recommendation when offers come in, and that lots of buyers happily supply this proof up front. Hmmm. The agent I just spoke to went further and told me it was the law! I said that since many other agents I've registered with have not requested those details in order to view properties, I very much doubted it. He eventually conceded it was their policy, apparently based on a law which says estate agents must vet buyers. Though he couldn't be more specific.

I suggested that once my solicitor was instructed upon acceptance of an offer they could verify that I have an AIP and am good for the deposit, and would that suffice? He said no, I either disclose this now or he wouldn't be registering me, so I ended the call.

Bear in mind this is the insane market that is London, which is a nightmare for first time buyers like myself. All agents are doing, even in outlying areas, is holding a single open house viewing; dozens of buyers attend and most properties go immediately, seemingly for asking price or above. The power is all with the estate agents, so perhaps refusing to disclose who my lender is or how much deposit I'm putting down is working against me, given the market I'm in. I'm certainly going to miss out on viewings.

I appreciate nobody wants time wasters viewing their property, but revealing these details feels unwise and a bit desperate, and they are only going to be used against me. I'm just wondering whether this kind of "vetting" is a new trend in London or whether it's more widespread, and whether I'm being sensible in refusing to disclose anything about my AIP and deposit just to get a viewing. If I were a vendor I don't think I'd want to lose a highly proceedable buyer such as myself before they've even looked at my property (even in London!).

Re asking about deposit amount - are they doing that to satisfy themselves that you are good for the deposit which needs to be transferred up the chain at a later stage by your conveyancer? Isn't that normally 10% or so? Or are they trying to find out how much total deposit you're putting down with your lender for mortgage purposes? If so, what advantage do they gain by knowing that? Is it that by knowing your lender and deposit amount, they can work out how much you are borrowing, how much more that particular lender might lend and therefore whether they can push you any further?

I have just offered on a property which I am think I'm unlikely to get, just to test the waters, and though I haven't heard back yet I have not been asked by the vendor's agent to provide proof of AIP or deposit amount, so they're not all demanding this info up front. Yet.

Thoughts?

Char89

I can relate to this. We viewed about 20 flats at open days this year. We told them all the details as thought this would help us to get a flat when it first came on the market. I think they do this to try and ploy you to use their mortgage advisers.

To be fair though a few of the flats we saw fell through several times and this was due to the EA not vetting the buyer as they did not have enough money, which frustrated us.

HereBeDragons_2

Char89 wrote: »

I can relate to this. We viewed about 20 flats at open days this year. We told them all the details as thought this would help us to get a flat when it first came on the market. I think they do this to try and ploy you to use their mortgage advisers.

To be fair though a few of the flats we saw fell through several times and this was due to the EA not vetting the buyer as they did not have enough money, which frustrated us.

Was this in London? I can understand agents wanting to ensure a sale doesn't fall through, which is why I offered to have a solicitor verify that I'm good for AIP and deposit as soon as an offer is accepted - this should reassure an agent and vendor that the sale is unlikely to fall through, whilst safeguarding my financial position.

What I'm trying to avoid is revealing any financial details before viewing or getting to offer stage - there's little enough power as a buyer in London as it is without giving away your ability to negotiate the price altogether.

stator

Is this estate agent part of Connells Group?
http://www.connellsgroup.co.uk/our-group

They are scum, I boycott them out of principle.

kingstreet

HereBeDragons wrote: »

The agent I just spoke to went further and told me it was the law!

Which is true. The 1979 EA Act requires the agent to ensure the purchaser has "the wherewithal to proceed to unconditional exchange of contracts."

However, it is silent on how this is achieved and at what point it should be done.

Unfortunately, it's this vagueness large EA chains use to their advantage to manipulate potential buyers into using poor quality and expensive mortgage and conveyancing services.

"You want the house? You let us sell you everything we feel like."

HereBeDragons_2

stator wrote: »

Is this estate agent part of Connells Group?
http://www.connellsgroup.co.uk/our-group

They are scum, I boycott them out of principle.

Neither of them were, looking at that list. One is part of Kings Group and one is an agent covering SE London/Kent, with around a dozen branches.

HereBeDragons_2

kingstreet wrote: »

Which is true. The 1979 EA Act requires the agent to ensure the purchaser has "the wherewithal to proceed to unconditional exchange of contracts."

However, it is silent on how this is achieved and at what point it should be done.

Unfortunately, it's this vagueness large EA chains use to their advantage to manipulate potential buyers into using poor quality and expensive mortgage and conveyancing services.

"You want the house? You let us sell you everything we feel like."

That's exactly what I thought when he quoted "the law" at me - I asked him for further details on what that law said and he couldn't provide any, and I said it must be pretty open to interpretation given all agents don't demand up-front information on AIP and deposit.

Is it really only about finding out your financial position in order to push their crap mortgages and conveyancing? When questioned about my mortgage AIP I say I've got a meaningful AIP with a lender who is vigorous with affordability and at AIP stage and who has already done a credit check, and I have already chosen my solicitor. In which case they would surely realise I won't be taking them up on their 'kind' offer to help me get the best deal - so why still refuse to register me at that point, especially when I've assured them upon acceptance of offer I will get my solicitor to confirm I'm good for AIP and deposit?

I'm interpreting the demand for disclosure of AIP and proof of deposit funds before viewing as more of a wheeze to find out what financial limit you can be pushed to, given London's insane market. Am I wrong?

fairy_lights

HereBeDragons wrote: »

I suggested that once my solicitor was instructed upon acceptance of an offer they could verify that I have an AIP and am good for the deposit, and would that suffice?

Assuming you did manage to view a property and put in an offer, why would the Vendor want to accept it without having evidence that you are in a position to proceed? Someone who won't show an AIP prior to an offer being accepted could easily be a time waster who's not in any real position to buy.


I live out in the rural West country and was asked about my deposit and AIP when I wanted to view a property, and asked to show evidence of it when submitting an offer, so it's not a London thing.

HereBeDragons_2

fairy_lights wrote: »

Assuming you did manage to view a property and put in an offer, why would the Vendor want to accept it without having evidence that you are in a position to proceed? Someone who won't show an AIP prior to an offer being accepted could easily be a time waster who's not in any real position to buy.


I live out in the rural West country and was asked about my deposit and AIP when I wanted to view a property, and asked to show evidence of it when submitting an offer, so it's not a London thing.

But I'm not being asked to show my AIP as part of making an offer. I'm being asked to show AIP plus proof of deposit just in order to register with an agent as a buyer and be allowed to view a property.

I'm happy to show proof I have an AIP at offer stage, though I would black out the maximum mortgage offer amount in order preserve my negotiating position, and have my solicitor independently verify the AIP covers the agreed selling price and that they have sighted proof of my deposit funds. The fact I've just made an offer on a property without having to provide my AIP or copies of bank statements showing my deposit amount suggests it's commonly accepted that those things would be verified once the offer is accepted.

kinger101

If they try this !!!!!!!!, write to the vendor explaining that you'd like to view the property, but the EA is being obstructive. They don't need to see deposits/AIP before an offer is made. Also tell EAs you'll never use any service they recommend, and that it's not open for discussion.

Landofwood

I've said this a few times before, but I'll say it again. If you want to find a home, be nice to the Estate Agents. Many of them are disgusting human beings, but the buying process in England gives them so much power.

Co-operate with them 100%. Be their best friend. You don't have to tell them the truth if you don't want to (e.g. inflate the size of your deposit), but make them think you are the nicest most cooperative buyer they've ever had.

Tell them that you'd like them to recommend additional services to "make the sale go smoother", e.g. solicitor, surveyor. And then don't use any of them.

They will be frothing at the mouth to find you a property. You will be the first person they call BEFORE the property is even marketed. They will big you up to the vendor and discourage them from selecting other buyers.

They play the game, so you can too.