EA pressuring to use in house broker - advice pre call :)

TXC

Hi all
Me again
Just been to see a great house, very much liking it and have put an offer in already. However the EA seemed quite insistent that I speak to their inhouse broker "to give me the best possible advantage" as "vendors prefer everything to be in house and we recommend offers that are going through our in house to give people the edge"
I'm really not comfortable with this and I did challenge as she said "we can sway the vendor as its better to have everything done in house" at which point I said doesnt any decision have to be 100% the vendors?
Anyway I have a call with the advisor this afternoon - I have an AIP with my own high street bank and really am not interested in this service as to me alarm bells are ringing that theyll run off the maximum AIP and I'll be exposed as to how high I can actually go
Any advice greatly appreciated.

moneysavinghero

You could either go along with what that want if you want an easy ride (you don't have to actually go with them)

Or point out to them The Property Ombudsman Code of Practice section 2 and 9d and ask them to confirm if it is going to sway the vendor. Also point out that you know where the vendors lives and you can pop round to verify that the vendor is happy with this arrangement.

They are not really doing this to get your maximum from the MIP, more to try and get a referral fee if you get your mortgage through them.

theartfullodger

I'd not go with a tied broker:. Their loyalty will be (and probably commission) to the agent.

But you want a deal and to keep everyone (including agent) happy.  So smile, say yes of course I'll speak to them, see what they say - might get some ideas - thank them profusely for their helpful and expert advice, then go with a (genuinely) independent broker.

Chandler85

People are obsessed that an estate agent knows what they can afford, so they'll have to pay more.

Why would you?  You pay what it is worth.  I provided an EA with a AIP for £250k and bought a house for £190k.  That was what my offer was and what I was willing to pay, the EA could have tried everything under the sun, I still wasn't paying more.

Ramouth

theartfullodger said:

I'd not go with a tied broker:. Their loyalty will be (and probably commission) to the agent.

But you want a deal and to keep everyone (including agent) happy.  So smile, say yes of course I'll speak to them, see what they say - might get some ideas - thank them profusely for their helpful and expert advice, then go with a (genuinely) independent broker.

This is what I would do too.  Don’t worry about them knowing how much you could go to - just because you can doesn’t mean you want to.  You are basing your offer on what the house is worth to you not on the maximum you can afford.

Ramouth

Also, good luck!

TXC

Hi all
Wasn't nearly as bad as feared - i kind of just cut it dead saying "my understanding is this is to assess my proceedability in terms of AIP and deposit in place - happy to provide both of those things but wouldn't want a broker consultation until my offer has been accepted - if at all" the guy was really nice and said upfront there is no duress whatsover and they had just been instructured to call all viewers to assess proceedability because the buyer had had mortgage issues due to not being honest about his employment status and the vendors were in rented so really couldnt afford to wait.
Said he used to work for my lender and knows that their AIPs are a very good indicator of lending ability and that I'm in a very strong position and he would relay that back 
Feeling much better now - thanks everyone!

AnotherJoe

Good luck TXC !

TXC

Thanks all!
Update: my offer has gone to BAFO (increased it slightly) and feedback from the EA was that the only thing making my offer weak was that I wouldn't use the the advisor for the mortgage as theyve been let down before and if i could commit to using them for my mortgage it would stand me in better stead. I said I absolutely can't commit to that and I'm not comfortable with the conversation, I'd speak to the FA absolutely but only once the offer has been accepted and with the understanding that there is no expectation.
So now we wait!

TXC

So I didn't get it EA said that it wasnt a million miles away from my best offer but I wouldn't be allowed to increase to keep it fair but did say if anything changed he would let me know

Adsta

I didn't think EA's are allowed to not accept any offers just to "keep it fair"? If you want to put an offer they have to legally send it to the vendor no? 

On the topic though, I had similar with the EA. Pushed me towards their broker and solicitors. I entertained the broker as they said it was also part of their affordability check (despite having an DIP). But the solicitors I just told them already have one so no need.