Sellers estate agent wants to see 3 wage slips

nads

Hello all,
Hopefully you can help. My sister put in an offer for a house and the sellers estate agent (a national medium sized agent) said that they have had 2 offers for the house - the same offer price - and she will check with my sisters estate agent to see what the chain is like - understandable.

However she has also asked my sister to come into the office with 3 wage slips tomorrow to show earnings, is this fishy or is this now the norm?

We've explained we don't want the mortgage but she still wants to see earning.

Also, can the estate agent decline\ignore our offer on the basis that we don't want a mortgage form them. Should my sister put in a slightly higher offer?

Thank you for any advice.

cats!

Hi nads.

Ok, firstly does this "other" offer really exist??? The economy at present is probably heading for an almighty credit crunch/price decline a la 1990. The agent could just be trying to spook your sister into paying more!

I've never heard of an agent asking for payslips. This suggests to me they want to see how much you earn so they can arrange a lovely "liar loan" (thanks to eric pebble!) based on a million times income multiples. Be wary.

If your sister has an agreemnt in principle or an actual mortgage offer that is sufficient proof of intention to purchase. Your sister should stick to her guns and make sure that a note is out through the vendors door confirming her situation (i.e. complete chain etc) and perhaps add her mobile number.

My honest advice? Don't increase the offer, this is 2008 not 2003!!

chriz1000

It’s in estate agents blood to find out as much information as possible about the buyer. Remember they are working for the seller they are not an impartial medium.
I would be very wary about handing over pay slips, as Cats was suggesting, perhaps they will tell you that you can afford a bigger mortgage after seeing your payslips so increase the offer and secure the house. They have no right to have this information. A mortgage in principle is certainly sufficient.

123oleary

the estate agent should make a cursory check to make sure your offer is credible and will also take the oppurtunity to try and sell you a mortgage but asking for payslips is going a bit far. if you have some paperwork to show you have a mortgage agreed in principle or a sale on an existing property agreed this should be enough. the estate agent is legally obliged to inform the sellers of all offers .

KellsBells

Hiya,
It is quite normal for an estate agent to be asked by a vendor to ensure any offers they receive are qualified. This means the agent has to establish that the buyer is good for the money they are offering. This would generally be an aip or if they are offering cash, a bank statement. Don't know what wage slips could possibly prove though...

I find it unethical that the e/a has told you the other offer is at the same amount, and if it is, this would be the reason I would consider an increase. I do agree with cats! in that a letter put through the vendors door would be a very good idea.

Best of luck to your sis!x

slipp_digby

nads wrote: »

Also, can the estate agent decline\ignore our offer on the basis that we don't want a mortgage form them. Should my sister put in a slightly higher offer?

No they can't - they must treat all offers in the same manner and cannot discriminate against you on the basis that you are not getting services such as mortgage/conveyancing from them.

They also cannot 'ignore' offers. All offer must be passed onto the vendor and confirmed in writing, unless the vendor has given specific instructions e.g. no offers under £X price to be passed on.

Do not give them payslips. There is no reason why they need these specifically.

They are either fishing for a mortgage commission for an in house advisor, or trying to work out if you can afford more.

If they see you can get a bigger mortgage *bingo* - I bet you £50 the 'other party' has 'upped their offer' (if they even exist).

Jorgan_2

In 16 years as an EA I have never asked to see anyone's payslips and I'm really struggling to understand why this agent wants to see them. See if your sisters mortgage broker will ring the agents to confirm that she can borrow the sum of money required.

The EA can not show bias towards any other party just because they are using their mortgage services.

There may well be another interested party, I've had six offers on three properties this week, people are still buying houses despite what some on here will have you believe.

Money4uMortgages

Largely agree with above sentiments. If they can see your pay slips, the in-house broker can determine how much higher you can go to 'meet the vendor in the middle'.

Doozergirl

Jorgan wrote: »

There may well be another interested party, I've had six offers on three properties this week, people are still buying houses despite what some on here will have you believe.

I couldn't even get in to see a new property to the market this week before it went under offer. It wasn't exactly a bargain at the asking price either! Three new to the market on my SIL's street have gone under offer almost immediately too. We even had a good offer on ours

Back to the OP, I'm sure it's a ruse to get you to use their broker. And of course they aren't supposed to use bias but in reality If it were me and they were hassling then I would let them do the sales spiel to secure the house and then once I'd got the offer accepted, I'd use my own whole of market broker anyway. If they want to play like that, then you have to play along until you get what you want.

UK007BullDog

A sneaky way to get your sister in front of their broker, maybe not to find out if you can offer more on the house but to just get a mortgage through them.

Say no and if they do not lay off tell them to put the house back on the market or offer it to the "other" buyer! See who can "poker" better.....

princessflea

Maybe it is just to show proof of funds?
We had 2 similar offers in on 1 property recently and as one claimed to be a cash buyer we asked them for proof of funds and they showed us their bank statement. They were therefore in a better position than the other potential buyer who needed a mortgage and the cash buyers offer was accepted.

Unsure why they would want this proof if a mortgage is in place though. Has she asked them why they want to see wage slips?

The estate agent shouldn't have a say in whether the vendor accepts the offer although they can offer advice.

Don't let her put a higher offer in!