DIP higher than what I'm willing to offer

lookstraightahead

Can an estate agent 'see' the amount you have on a DIP and if so, surely this influences negotiations in the seller's favour? As agents need proof of DIP prior to even offering (?) doesn't this show a buyers hand (a bit).

Also, is it acceptable to ask a seller for a list of fixtures and fitting prior to any offer (sounds a bit extreme as the main items are listed in the details, but having their beautiful curtains will save us a lot of money and the vendor lives abroad). 

Thank you

ARH_2

The agent understandably wants to protect them self from time wasters. You saying you have a DIP from xyz bank and savings to cover the rest should be sufficient for any reasonable agent. Arguably they should put your offer forward with no financial information provided, but you want the agent to think your offer is serious so they recommend it to the vendor. 

The real reason agents often want to get into your finances is so they can put you in contact with their mortgage broker and make a kick back. It can be worth playing along to motivate the agent to recommend your offer. In your case, it might be sensible to just say you've got a DIP, this offer is within your budget so kindly put it forward. 

It's acceptable to add some conditions/understandings to your offer, e.g. 'based on living room curtains being left behind' etc. To do this you'd make your offer on the phone to the agent and pop them an email so you can refer to it if the fixtures and fittings form doesn't later reflect this. 

AdrianC

Just because you can afford more, you aren't obliged to offer more.

If the vendor's EA knows what you can afford, it merely stops you playing the "Oooh, but that's the maximum affordability" line - which would be a lie anyway. It doesn't stop you saying "Nope, that's the highest I'm willing to offer for that property. If they won't accept, then I'll walk away from this one."

K_S

lookstraightahead said:

Can an estate agent 'see' the amount you have on a DIP and if so, surely this influences negotiations in the seller's favour? As agents need proof of DIP prior to even offering (?) doesn't this show a buyers hand (a bit).

@lookstraightahead It is standard practice for EA's to ask for a copy of the AIP to qualify the offer. I always advise my clients against it for exactly the reason you mentioned. There's no need for an EA to know your max borrowing.

Most EAs are satisfied by an email from the broker confirming that my client can get the mortgage required to support the offer made. 

lookstraightahead

Thank you - that's really helpful

lookstraightahead

I have an excellent broker who I'm really happy with, which is a good start ! 

lookstraightahead

K_S said:

lookstraightahead said:

Can an estate agent 'see' the amount you have on a DIP and if so, surely this influences negotiations in the seller's favour? As agents need proof of DIP prior to even offering (?) doesn't this show a buyers hand (a bit).

@lookstraightahead It is standard practice for EA's to ask for a copy of the AIP to qualify the offer. I always advise my clients against it for exactly the reason you mentioned. There's no need for an EA to know your max borrowing.

Most EAs are satisfied by an email from the broker confirming that my client can get the mortgage required to support the offer made. 

This is really interesting - as EAs often put across that they need to see an AIP - there was one property who refused to let me even view unless I showed an AIP. 

lookstraightahead

AdrianC said:

Just because you can afford more, you aren't obliged to offer more.

If the vendor's EA knows what you can afford, it merely stops you playing the "Oooh, but that's the maximum affordability" line - which would be a lie anyway. It doesn't stop you saying "Nope, that's the highest I'm willing to offer for that property. If they won't accept, then I'll walk away from this one."

Thank you

K_S

lookstraightahead said:

K_S said:

lookstraightahead said:

Can an estate agent 'see' the amount you have on a DIP and if so, surely this influences negotiations in the seller's favour? As agents need proof of DIP prior to even offering (?) doesn't this show a buyers hand (a bit).

@lookstraightahead It is standard practice for EA's to ask for a copy of the AIP to qualify the offer. I always advise my clients against it for exactly the reason you mentioned. There's no need for an EA to know your max borrowing.

Most EAs are satisfied by an email from the broker confirming that my client can get the mortgage required to support the offer made. 

This is really interesting - as EAs often put across that they need to see an AIP - there was one property who refused to let me even view unless I showed an AIP. 

EAs will always say that. In most cases all they want to ascertain is whether you're a serious buyer, and an email from the broker usually serves that purpose. Just ask your broker to do that and take it from there.

AdrianC

lookstraightahead said:

K_S said:

lookstraightahead said:

Can an estate agent 'see' the amount you have on a DIP and if so, surely this influences negotiations in the seller's favour? As agents need proof of DIP prior to even offering (?) doesn't this show a buyers hand (a bit).

@lookstraightahead It is standard practice for EA's to ask for a copy of the AIP to qualify the offer. I always advise my clients against it for exactly the reason you mentioned. There's no need for an EA to know your max borrowing.

Most EAs are satisfied by an email from the broker confirming that my client can get the mortgage required to support the offer made. 

This is really interesting - as EAs often put across that they need to see an AIP - there was one property who refused to let me even view unless I showed an AIP. 

There's two reasons.

First is, as K_S says, making sure you can actually afford it and aren't just a time-wasting dreamer...

The second is to try and upsell you their mortgage broker services.

csgohan4

I had a broker who advised against getting a DIP until application. EA wanted to check I could afford, gave them the brokers number to call. No problems with that. They wanted to peddle their services but I already had broker

Their surveyor were also a rip off, costing almost double what I did mine for.