Estate Agents - playing tricks ?!!

russandkaren

Ok, no names to protect the innocent ...

We're looking at buying a 4 bed semi, with loads of space and perfect for what we want...it ticks the boxes for the following...

- Kids school catchment area
- Kids buses to school
- It's in the area that we like

Negatives

- it's a semi-detached
- bathrooms do not have windows (minor points but never had this !)
- it needs some work doing to it...just painting and a general spruce up

To cut to the chase, the house is on the market for £315,000 and has been sold, but the bottom of the chain is having problems finding a mortgage, so the vendors have put it back on the market. We have offered £290,000 which has been turned down, but the Estate Agent (independent) stated the following:

- They asked me how much savings I had to put down on the property
- They told me (having offered 290K) that the vendor will not accept anything below 305,000 !

Call me old-fashioned, but surely the above questions shouldn't be asked and divulged by an estate agent...I didn't tell them how much we had to put down by the way.

The bottom line is, we want this house but the estate agent appears to be the sticking point here....and we think maybe advising the vendor to hold out for the 305,000, which we would be prepared to pay, but would obviously like to get the property at around the 300k mark ...and no more.

Any advice gratefully received.

poppysarah

how much savings you have = the valuation on the house won't be anywhere near the amount they're asking so don't expect to get even a 90% mortgage on it.


That is the only reason to ask for details of your savings.

kimosaaby

Pay for a valuation to avoid walking in to a world of pain. Ultimately the EA is legally obliged to pass on your offer. It is possible the vendor wants or needs 305 rather than the EA advising them. The EA wants his commission and will not suggest holding out for 305 vs 290 because that is only 5% difference in their commission [ASSUMING a linear commission scale] and they would much rather have 95% than nothing. IF you will come up towards 305 you need to know the property is worth it in todays market.
Your savings are irrelevant: Unless the EA was clumsily trying to find out if you were really in a good position to buy in order to mend the chain.

Nenen

Be very careful about getting into any sort of contract 'race' i.e. you have an offer accepted and start paying out for surveys, solicitors etc and then suddenly the original purchaser's buyer manages to get the necessary mortgage and are ready to go again, possibly at a higher price than you. The vendor could then go back to 'plan A' and leave you high and dry having shelled out several hundred pounds.

Debt_Free_Chick

russandkaren wrote: »

We have offered £290,000 which has been turned down, but the Estate Agent (independent) stated the following:

- They asked me how much savings I had to put down on the property
- They told me (having offered 290K) that the vendor will not accept anything below 305,000 !

Call me old-fashioned, but surely the above questions shouldn't be asked and divulged by an estate agent...I didn't tell them how much we had to put down by the way.

First question is not unreasonable - the EA is trying to assess how strong your position is. The more you have as a deposit, the lower the mortgage you need .... the lower the mortgage, the more likely you'll be able to get one and proceed. Look at the position of the chain ..... the mortgage is the key.

Second question - well, of course he's going to try and get the best deal for the seller. It's not unusual, at this stage, for the seller to "put their cards on the table" although many choose not to.

You could suggest that you "split the difference" and up your offer to £297,500 - although that's quite a leap, but it would show you were keen and still keep the price within your range

RHemmings

russandkaren wrote: »

Ok, no names to protect the i
The bottom line is, we want this house but the estate agent appears to be the sticking point here....and we think maybe advising the vendor to hold out for the 305,000, which we would be prepared to pay, but would obviously like to get the property at around the 300k mark ...and no more.

As part of my "research" I once phoned an EA about a property that had been on the market for over a year. I was told an amount that was "absolutely the minimum that the seller was prepared to accept". It's now sold, and on nethouseprices, it sold for a few thousand less than the "absolute minimum". This is a cheaper house, so proportionally that few thousand less is a noticeable amount.

With house prices falling by increasing amounts, the boot appears to be on your foot.