Highest offer or most secure recommended buyer?

ruby2sday

So I viewed a flat last week that was by far the best I'd seen for the price, I fell in love with it immediately and put an offer in there and then for 10k above the asking price as that's what a similar (but not quite as nice) one in the area just went for. In hindsight maybe that wasn't the best move but I thought I'd get in there quick and secure it before anyone else. He phoned later that day to say the offer had been accepted but I'd just need to be financially qualified to ensure we could afford it, until then they would accept more offers. The offers went up and up and we offered 5k more (as much as we could afford) but still wasn't the highest. We were both fully okayed by their mortgage broker, but they've collected the offers and mine is the lowest. The highest being 5k higher than mine. I would up the offer if I could but we have exhausted all our funds and mortgage options.

The estate agent insists that we're still in the running as he thinks we're the perfect people to get the property. He's let the seller know we're first time buyers, no chain, large deposit and we are the only buyers to have been financially qualified by them. Their mortgage broker also told the seller this and apparently sang our praises, but I'm not sure whether the EA is just saying this because the other offers are from his colleagues clients and he wants our commission or he genuinely does still think we have a good chance... Do you reckon 5k is a substantial enough amount that the seller will likely go for the highest offer? Or is a recommended buyer who definitely has the funds more important? Obviously this depends on the seller but from experience does anyone know what the most common outcome is in these circumstances? And in future, is it worth putting in an offer early and proving your seriousness to the EA by agreeing meetings with their broker etc. or is it best to wait until you know what others are offering and go in and gazump them at the last minute?

In hindsight I probably should have started at the asking price, waited for others to offer over, knowing I could outbid them a few times if I needed to. The seller will decide tomorrow morning but it doesn't look good.

elsien

Personal I would never agree to speak to the mortgage broker associated with the estate agent - don't forget that the estate agent is not working for yiu they are working for the vendor and they will do whatever they can to get the highest offer for them.
You can show you're serious buyers without needing to show them your top limit. Always go to an independent broker.

letitbe90

elsien wrote: »

Personal I would never agree to speak to the mortgage broker associated with the estate agent - don't forget that the estate agent is not working for yiu they are working for the vendor and they will do whatever they can to get the highest offer for them.
You can show you're serious buyers without needing to show them your top limit. Always go to an independent broker.

This advice is often given but remember, it is in the interest of the EA that you make completion so they have little interest in giving you rubbish solicitors or mortgage brokers. Any referral fees they get is chicken feed in comparison to completion fees.

Recently I went with a well known broker who charged £600, the EA broker said if I’d consider them instead as they can do it for £300. I said no at the time as I already started the process with the other broker and eventually they offered it for free. On the basis of saving £600 I thought might as well and they got me a mortgage offer very quickly and efficiently, the same offer as the one the £600 broker was offering.

There are I am sure bad experiences by people but then there are bad experiences no matter where you go.

Not saying you should always go with the EA broker/conveyancer, but do compare them and make a decision after looking at all the information. If the EA is good, they probably don’t have cowboys running the show.

PS By coincidence I ended up selecting a solicitor which the EA also prefers, I have to say the communication between EA/Broker/Solicitor was friction free - you only have to see how other people have negative experiences where each party try blame the other party. In my situation, it was in the interest of all parties to work together to get me to completion.

ACG

Not to sounds too negative but I would not be surprised if you have not been bidding against yourself until you reached your upper limit.

Only a silly agent would be taking real bids significantly above the asking price as it will likely get down valued when the survey gets carried out.

ruby2sday

We went for a second viewing of the flat after meeting with their broker, and the flat was full of people you could barely move and another estate agent was constantly speaking with potential buyers outside so as much as I'd like for the other offers to be made up so we win the flat, I doubt it. If it gets valued at a lower price does that mean the lender will refuse to lend? What happens then?

ruby2sday

elsien wrote: »

Personal I would never agree to speak to the mortgage broker associated with the estate agent - don't forget that the estate agent is not working for yiu they are working for the vendor and they will do whatever they can to get the highest offer for them.
You can show you're serious buyers without needing to show them your top limit. Always go to an independent broker.

We were aware we didn't have to speak to them, especially since we already had an MiP with our own broker, but we just wanted to give a good impression and look serious about the offer. We decided to stay with our own broker and they were fine with it

Owain_Moneysaver

ruby2sday wrote: »

we're first time buyers, no chain, large deposit

Sounds okay to me.

I (having worked in estate agents offices) have certainly seen a seller lose far more than £5k taking a second-best offer because the date of entry suited them.

ruby2sday wrote: »

If it gets valued at a lower price does that mean the lender will refuse to lend?

I think not, as long as your loan-to-value ratio is still within what the lender accepts for both you and the property.

But if you don't get it, it wasn't meant for you, and there are other flats out there.

eddddy

ruby2sday wrote: »

The estate agent insists that we're still in the running as he thinks we're the perfect people to get the property. He's let the seller know we're first time buyers, no chain, large deposit and we are the only buyers to have been financially qualified by them.

So it sounds like you're saying that...

...you'd be arranging a mortgage through the EA's mortgage broker, but other buyers wouldn't be.

So the EA will want you to 'win', because you'd be giving them more commission than anyone else.


It's completely immoral, but the EA might push the seller to accept your offer - not because your offer is the 'best', but because they earn more fees.

But if I was the seller, I think I'd ignore the EA and take the highest offer. But who knows?

anselld

Most buyers will understand that an EA does not have the foggiest idea who is the "most secure" buyer. So assuming they receive all offers they will probably go for the highest bid.

Having said that you probably are the highest (and only) bid.

Cakeguts

What the estate agent tells you isn't worth anything. He is being paid by the vendors and the vendors will decide which offer to accept.



It might be a very good idea to start looking for other flats.

ruby2sday

eddddy wrote: »

So it sounds like you're saying that...

...you'd be arranging a mortgage through the EA's mortgage broker, but other buyers wouldn't be.

So the EA will want you to 'win', because you'd be giving them more commission than anyone else.


It's completely immoral, but the EA might push the seller to accept your offer - not because your offer is the 'best', but because they earn more fees.

But if I was the seller, I think I'd ignore the EA and take the highest offer. But who knows?

No, we're sticking with our own broker. Their broker said she could find us a higher loan amount but couldn't and said "no you've got the best offer already". I think most or all of the other offers though are the other estate agent's buyers not our EA, so obviously that's why he's pushing for us.