Agent won't allow viewing without sight of mortgage offer

stator

westernpromise wrote: »

One of the reasons why people use agents is exactly because they screen out timewasters.

More likely the estate agent pressured them into agreeing to it. If your phrased the question another way, do you want us to turn away potential buyers because they won't be earning the agents extra comission? and then answer would be different

lewishardwick

I had this issue. The properties I offered on, the agents all insisted I go through their in-house broker to "ensure affordability". As soon as I mentioned my friend was providing brokerage facilities free of charge, they just entered a few numbers, said yes and wished me luck. They knew there was little chance of offering me a sweeter deal than 'free'.

Mutton_Geoff

always_sunny wrote: »

Why doesn't your sister get the AIP if she's so keen on this property?
Seems the easiest solution? It's free, over the phone with a broker.

She will have one shortly. It takes time to organise the method by which she will fund her purchase. I am funding 50% with cash. She is interested in an interest only loan and making overpayments to clear the loan in 10 years (we are both near 60 years old so bog standard 25 year terms are not an option nor are standard online applications). Another option she is looking at is a repayment mortgage with me taking a share in the house but we then have to consider the extra 3% in stamp duty. All this is going on at the moment whilst she is viewing.


I'd argue that any agent worth their salt can vet out most of the timewasters by experience. Amateur salespeople need paper, they need proof. Even though forms can be Photoshopped, we have moved to a society where there is no more trust or judgement in an agents decision making. If they wish to de-risk their own business, then they should similarly be reducing their fees.


In any case, my sister has viewed 4 more properties today and we are close to a shortlist with an offer about to go in. The Countrywide agent can sing, their property is out of the equation.

Thrugelmir

Mutton_Geoff wrote: »

I'd argue that any agent worth their salt can vet out most of the timewasters by experience.

Not as if "timewaster" is stamped across their foreheads. Using your logic. People would be transparent in all walks of life. Which in my personal business experience they most certainly aren't.

Mutton_Geoff

Thrugelmir wrote: »

Not as if "timewaster" is stamped across their foreheads. Using your logic. People would be transparent in all walks of life. Which in my personal business experience they most certainly aren't.

I quite agree with you, but the UK estate agency business is purely geared up for this situation. There are not many (straight) businesses that are "no result, no fee". Not one professional I have dealt with in the last 40 years has operated like this. So, by nature of their business, agents have to take risk that there are "timewaster" buyers in the same way there are timewaster sellers. A timewasting buyer is going to take up 30 mins of their time if they failed to judge them correctly. A seller could waste hours of their time and thousands of pounds in wasted advertising and portal fees as well as the hours it took them to close the deal, show other uninterested purchasers around etc etc.


My point is, I think they are wasting their time with this daft rule and certainly limiting their prospects. I have bought and sold over £4 million worth of property in the last 2 years. Not once have I been asked for proof of my situation by an agent prior to the first viewing.

sulphate

As a vendor, I would be hesitant to accept any offer unless my EA had clarified that they had finances in place. If I had two similar offers, one from a confirmed proceedable buyer and the other not, it doesn't take a genius to work out which offer I would accept. It may even be that the vendor has asked the EA to weed out time wasters in this way.

In the city nearest to where I live, the demand is so high in central areas that it's normal for good properties to receive 20 offers after one weekend. Verifying buyers' positions helps vendors narrow it down.

One reason why property sales fall through is because the buyer who has apparently claimed that they have the ££ to proceed, may turn out to have been over exaggerating their income, not declared a CCJ, or for whatever reason can't get the mortgage they were hoping for. It's the EA's head on the block and they only get their commission after exchange, so it's very much in their interest to ensure that any offers can be substantiated.

Luke273

The cynic in me says these estate agents simply ask for mortgage offers, proof of deposit, etc just for leverage to use against you. My deposit and AiP was significantly higher than what was needed for a property I was interested in, and had to send them as proof before they submitted my offer.

After three offers which were very reasonable for the market rate I pulled out of the deal completely, the final offer was just £3k under the asking price, suddenly the vendor was playing hard ball and the estate agent was very pushy in wanting me to offer more. No thanks.

Thrugelmir

Luke273 wrote: »

After three offers which were very reasonable for the market rate I pulled out of the deal completely, the final offer was just £3k under the asking price, suddenly the vendor was playing hard ball and the estate agent was very pushy in wanting me to offer more. No thanks.

Some people will happily pay over the odds. If a particular property meets their requirements. As may not be back on the market for a very long time. All down to a personal choice.

kinger101

I think many people are being a bit unreasonable here. In the north, an estate agent would never ask to see a DIP before an acceptable offer is made. They'll simply ask if you have one. I know the practice is different in the south, but it really isn't necessary, or that helpful given they're little reassurance that the buyer will actually get the mortgage anyway. Some are little more than a soft credit check that does little more than confirm they're a real person who lives where they say they live. However, you have to play their game.

Rather than showing your financial details to the EA or their mortgage broker, you could get your mortgage broker or solicitor to write a letter stating you have funds available appropriate to the list value of the property.

jlaw4

kinger101 wrote: »

I think many people are being a bit unreasonable here. In the north, an estate agent would never ask to see a DIP before an acceptable offer is made. They'll simply ask if you have one. I know the practice is different in the south, but it really isn't necessary, or that helpful given they're little reassurance that the buyer will actually get the mortgage anyway. Some are little more than a soft credit check that does little more than confirm they're a real person who lives where they say they live. However, you have to play their game.

Rather than showing your financial details to the EA or their mortgage broker, you could get your mortgage broker or solicitor to write a letter stating you have funds available appropriate to the list value of the property.

I live in the north and they are asking for my AIP along with an offer. Its becoming far more common place than it used to be!