Securing a property

lipo

I am interested in buying a particular property and have offered the asking price. There is also another potentional buyer. The agent told me that I need to put down a non-refundable deposit for my offer to be accepted. Apparently, if the deposit is higher then that of the other person, my offer will be accepted.
Is that usual?
If yes, how much shall I pay up front?

Also, do I need to have an agreement in principle in place now, or can I do it when my offer is accepted?
If the above is better to have, how long does it take to get that AIP sorted?

Thanks, lipo

MissMotivation

Whereabouts in the country are you buying? This seems unusual!

lipo

Romford in Essex

devils_advocate

So let's just analyse the situation.

in the forefront of the biggest crash in the last 10 years, you offer asking price. The estate agent gives you their talk. In your desperation to get the house, you offer a non refundable deposit of £10,000. The estate agent then says, "sorry. the other party offered a deposit of £10,100 so therefore you lose out. Now go away."

You are now £10,000 poorer, with nothing to show for it but the sight of the grin on rthe estate agent's face.

Quite frankly, such a scenario is not usual, as most people would see it as a complete scam. Estate agents would love it to be the norm, though. I suspect that by offering asking price, they assume that you're so naive that you'll fall for anything.

Do not go near this estate agency again. Find someone with slightly more scruples. And remeber the old line about estate agents - if they're talking, they're lying.

MissMotivation

Estate Agents CANNOT take deposits, this is very very unusual and I would strongly recommend that you do not take this any further.

Devils Advocate - not ALL EA's are liars, please don't tar all of us with the same brush

Doozergirl

A deposit can't be non-refundable if you haven't exchanged contracts. If you give it to them they can always steal it from you though!

How non-refundable is it if the survey throws up something bad or indeed the searches? Something that meant a mortgage couldn't be raised or that you simply weren't happy with.

Our process in this country isn't brilliant but the reason we don't put money down initially is because we need to know that what we are buying is structurally safe and legally sound.

Don't do it.

Strapped

As has been said, don't touch this with a very long bargepole. Walk away! You're being scammed.

guppy

Agree with all the above. Its hardly a seller's market anymore, unless this property is a serious bargain, give some serious thought to finding another.

If they are playing this rough before you've even made an offer, do you really want to deal with them once they've got your "non-refundable" wedge?

devils_advocate

Devils Advocate - not ALL EA's are liars, please don't tar all of us with the same brush

What I was trying to say is remember who the agent is working for - if you treat all estate agent utterances with a healthy degree of cynicism, it may save tears i the longer term.

lipo

thank you very much all.
Your comments have been very useful to me,
lipo