Two offers but agent saying not offers!

Broons75

We have had two offers on our house. Both over asking.  One from a party that has a buyer, a chain of 3-4 with the end being a FTB. Our agent is saying it is only an offer in principle until the FTB at the end of the chain has the mortgage confirmed. Is this right? Can we really not accept this offer until the whole chain is confirmed? We have made an offer on a property which is accepted in principle but they wont formally accept until we are under offer so i'm worried we will lose it because our agent is being so particular ( we are both with the same agent). 

MyRealNameToo

Are you in Scotland?

Broons75

MyRealNameToo said:

Are you in Scotland?

No, Wales and buying in England.

Bigphil1474

The chain is built from the bottom. The FTB has to have their mortgage confirmed so that there vendor is proceedable. That buyer is then proceedable for their purchase - really, none of the people below you in the chain should have had an offer accepted until that FTB was confirmed as proceedable. 

eddddy

I think the estate agent is just warning you not to be too excited at this stage - just in case the FTB doesn't get a mortgage offer.

Broons75 said:

( we are both with the same agent). 

Are you saying that the same estate agent is dealing with the sale to the FTB (and therefore knows stuff about the FTB)?

If so, the estate agent may have some concerns about their ability to get a mortgage.

Is your estate agent proposing that you continue marketing your property and continue viewings and continue inviting offers, until the FTB has a mortgage offer?

saajan_12

Broons75 said:

We have had two offers on our house. Both over asking.  One from a party that has a buyer, a chain of 3-4 with the end being a FTB. Our agent is saying it is only an offer in principle until the FTB at the end of the chain has the mortgage confirmed. Is this right? Can we really not accept this offer until the whole chain is confirmed? We have made an offer on a property which is accepted in principle but they wont formally accept until we are under offer so i'm worried we will lose it because our agent is being so particular ( we are both with the same agent). 

Offer acceptance isn't as official as agents like to make out. 

You can instruct your agent to accept any offer, but you  vendor may not treat that as you being under a (proceedable) offer if the buyers further down the chain aren't also under offer and able to afford it. Affordability would usually mean have savings + house equity + mortgage in principle totalling the purchase price. 

What exactly is the agent expecting, a full mortgage offer (taking weeks) or a mortgage in principle (taking minutes online)? 

Mark_d

It is concerning that this chain has built up but the FTB still hasn't been able to a get a mortgage sorted.