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Advice Required For House

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The Sophisticated Buyer, meets the Sophisticated Seller

I'll be brief

Put an offer in on house, rejected twice according to the EA.

Have put final offer of asking price.

It is a repo and been on the market for 3 months. Price reduced.

Now "All offers refused" until they see my credentials/payslips and meet with their mortgage advisor.

Feel like being mucked about at this stage.

I have funds ready, and a mortgage promise. I Do not want to use their Mortgage advisor and be sold a product I do not want, or borrow more money when they've seen my payslips.

Do they have a right to look into my finances?

---

Also I have noticed the vendor has put the same house with another agent this week. Should I withdraw the offer and go with the new agent? Clearly the vendor (on behalf of the bank) is getting impatient and using another agent.

Not the dream house, so will walk away from this deal.

Edited by Money Spinner

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The Sophisticated Buyer, meets the Sophisticated Seller

I'll be brief

Put an offer in on house, rejected twice according to the EA.

Have put final offer of asking price.

It is a repo and been on the market for 3 months. Price reduced.

Now "All offers refused" until they see my credentials/payslips and meet with their mortgage advisor.

Feel like being mucked about at this stage.

I have funds ready, and a mortgage promise. I Do not want to use their Mortgage advisor and be sold a product I do not want, or borrow more money when they've seen my payslips.

Do they have a right to look into my finances?

---

Also I have noticed the vendor has put the same house with another agent this week. Should I withdraw the offer and go with the new agent? Clearly the vendor (on behalf of the bank) is getting impatient and using another agent.

Not the dream house, so will walk away from this deal.

You do not have to give any info about your finances...go to the new agent and make your offer, an offer is only an offer...the survey will give you more of an insight to what the property is really worth.... ;)

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Just as I thought, thank you.

My mortgage advisor will ring me in the morning anyway, but thought I'd share with the HPC family.

---

Its a home to live in (FTB), not an investment!

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\Sorry, I should have said my own advisor will ring in the morning to advise if I need to reveal my financial position.

Its the meeting with the EA's mortgage advisor (who will have a VI in getting more for the vendor), that'll be a fruitless exercise.

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\Sorry, I should have said my own advisor will ring in the morning to advise if I need to reveal my financial position.

Its the meeting with the EA's mortgage advisor (who will have a VI in getting more for the vendor), that'll be a fruitless exercise.

They will be more concerned with trying to get you a mortgage deal that they earn selling commission on. If its a repo they have an even higher duty to try to get the best possible deal for the vendor. They have to advertise your offer and then ask for better offers.

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They will be more concerned with trying to get you a mortgage deal that they earn selling commission on. If its a repo they have an even higher duty to try to get the best possible deal for the vendor. They have to advertise your offer and then ask for better offers.

Yes, I've seen these on RM. Is it a trend repos are now being sold more through EAs rather than the auction houses. Perhaps investors are staying away.

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The Sophisticated Buyer, meets the Sophisticated Seller

I'll be brief

Put an offer in on house, rejected twice according to the EA.

Have put final offer of asking price.

It is a repo and been on the market for 3 months. Price reduced.

Now "All offers refused" until they see my credentials/payslips and meet with their mortgage advisor.

Feel like being mucked about at this stage.

I have funds ready, and a mortgage promise. I Do not want to use their Mortgage advisor and be sold a product I do not want, or borrow more money when they've seen my payslips.

Do they have a right to look into my finances?

---

Also I have noticed the vendor has put the same house with another agent this week. Should I withdraw the offer and go with the new agent? Clearly the vendor (on behalf of the bank) is getting impatient and using another agent.

Not the dream house, so will walk away from this deal.

I don't know how you have dealt with them, but I suspect the agents have taken you for a sucker. Coming back quickly with a third offer will have done it, imho. The phrase to use when they come up with this mortgage advisor BS is: "You can sell me a house or you can sell me a mortgage, but not both."

The house is on at another agent? Use them, and don't make the same mistakes you made with the first one (whatever they were.) Make sure that you have something in writing from the first agent saying that your asking price offer has been rejected. It will help when the first agent claims to the seller that it was he who effectively sold the house to you and that the second agent was poaching the commission.

I wouldn't mention to the second agent that you have dealt with another agent at least until you get an offer accepted.

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You are right to assume the mortgage advisor part. We did that previously and yes, it was just to try and sell us another mortgage. Yes, they did tell the EA and yes, they did try to use the information to bid up an offer price. We walked away and very happy now that we did.

More recently, we did look at a repo.( The "vendor" was the bank, how do you know it isn't in your case?). The EA asked for "full and final offers" by a certain date, we made our bid, the EA kept ringing back for a week trying to bid up the amount and trying to play off the interested parties against one-another.

Eventually they accepted an offer, this fell through and the entire process repeated. They advertised the amount accepted and asked for higher offers. This went on and on until the house did eventually sell for more than we offered. No regrets as far better properties around now.

Show them your mortgage offer, get them to agree a proceedure and then if they won't co-operate walk away (or use the other agent if you are still interested). Let the bank know that you are a serious buyer and have been mucked around.

Edited by Flopsy

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I don't know how you have dealt with them, but I suspect the agents have taken you for a sucker. Coming back quickly with a third offer will have done it, imho. The phrase to use when they come up with this mortgage advisor BS is: "You can sell me a house or you can sell me a mortgage, but not both."

The house is on at another agent? Use them, and don't make the same mistakes you made with the first one (whatever they were.) Make sure that you have something in writing from the first agent saying that your asking price offer has been rejected. It will help when the first agent claims to the seller that it was he who effectively sold the house to you and that the second agent was poaching the commission.

I wouldn't mention to the second agent that you have dealt with another agent at least until you get an offer accepted.

Yes, maybe I have a reprieve here with the second agent. The asking price I believe is fair anyway, but I believed the vendor might be want shot of it quickly at a even lower offer price. All rejected offers, I have in writing. I'll give this agent a week to get this house offer accepted subject to a homebuyers report without selling me a mortgage (even though I have to meet their advisor), or I'll no choice but to trot down the road to the other agent.

Edited by Money Spinner

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You are right to assume the mortgage advisor part. We did that previously and yes, it was just to try and sell us another mortgage. Yes, they did tell the EA and yes, they did try to use the information to bid up an offer price. We walked away and very happy now that we did.

More recently, we did look at a repo.( The "vendor" was the bank, how do you know it isn't in your case?). The EA asked for "full and final offers" by a certain date, we made our bid, the EA kept ringing back for a week trying to bid up the amount and trying to play off the interested parties against one-another.

Eventually they accepted an offer, this fell through and the entire process repeated. They advertised the amount accepted and asked for higher offers. This went on and on until the house did eventually sell for more than we offered. No regrets as far better properties around now.

Show them your mortgage offer, get them to agree a proceedure and then if they won't co-operate walk away (or use the other agent if you are still interested). Let the bank know that you are a serious buyer and have been mucked around.

Thanks, I am aware they could use bids off the wall. The house went under offer a month ago (to another buyer/ I was not interested at the time), but it fell through for some reason, and now it is relisted at a slightly lower price. The wonders of a google search!

I have asked family members with some experence in buying, and the EAs even what size of deposit you have! If they know all this information - then they know how much I can bid up to - theres no morals of ethics in sales.

Edited by Money Spinner

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Hmm you're still being too compliant. You don't "have" to meet their advisor at all. They can't make you. Personally I would refuse and say something along the lines of " my solicitor will confirm my ability to pay should an offer be accepted".

Remember sales and especially in this environment is about information asymmetry. The advisor will pump you for info that the estate agent will use against you.

IMHO you've already screwed yourself by going to asking too quickly. In your shoes I'd at most present your mortgage offer with any sensitive info redacted and then walk away and see what happens. Fairly often mystery others buffers then mysteriously vanish. If you're not that interested you have nothing to lose.

Remember any info given to this estate agent now will work against you on future negotiations.

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Hmm you're still being too compliant. You don't "have" to meet their advisor at all. They can't make you. Personally I would refuse and say something along the lines of " my solicitor will confirm my ability to pay should an offer be accepted".

Remember sales and especially in this environment is about information asymmetry. The advisor will pump you for info that the estate agent will use against you.

IMHO you've already screwed yourself by going to asking too quickly. In your shoes I'd at most present your mortgage offer with any sensitive info redacted and then walk away and see what happens. Fairly often mystery others buffers then mysteriously vanish. If you're not that interested you have nothing to lose.

Remember any info given to this estate agent now will work against you on future negotiations.

I conceed that I went to full asking too easily, this was a mistake I can learn from.

Thanks to all the advice on this thread.

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The Sophisticated Buyer, meets the Sophisticated Seller

I'll be brief

Put an offer in on house, rejected twice according to the EA.

Have put final offer of asking price.

It is a repo and been on the market for 3 months. Price reduced.

Now "All offers refused" until they see my credentials/payslips and meet with their mortgage advisor.

Feel like being mucked about at this stage.

I have funds ready, and a mortgage promise. I Do not want to use their Mortgage advisor and be sold a product I do not want, or borrow more money when they've seen my payslips.

Do they have a right to look into my finances?

---

Also I have noticed the vendor has put the same house with another agent this week. Should I withdraw the offer and go with the new agent? Clearly the vendor (on behalf of the bank) is getting impatient and using another agent.

Not the dream house, so will walk away from this deal.

This sounds similar to my experience 2 yrs ago.

EA tried everything to put me off buying, even

phoning me to warn me I'd lose money if I continued with surveys etc...

they have this house ear-marked for someone else.

ask them if they have forwarded your asking price offer. (do this by email)

chances are they will reply by phone because they won't want evidence they're

fobbing you off. they must by law forward your offer.

although there is a grey area if instructed by vendor, but you're offering full asking price.

demand they forward your offer or you will report them to the office of fair trade.

also as another poster said, go talk with the other EA aswell, same price I take it?

it's xmas soon you're in a good position, be prepared for unreasonable time frame to

complete contracts, given to you by ar5e-hole EA.

get a local solicitor and travel to them to sign paperwork (avoid post this time of year)

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This sounds similar to my experience 2 yrs ago.

EA tried everything to put me off buying, even

phoning me to warn me I'd lose money if I continued with surveys etc...

they have this house ear-marked for someone else.

ask them if they have forwarded your asking price offer. (do this by email)

chances are they will reply by phone because they won't want evidence they're

fobbing you off. they must by law forward your offer.

although there is a grey area if instructed by vendor, but you're offering full asking price.

demand they forward your offer or you will report them to the office of fair trade.

also as another poster said, go talk with the other EA aswell, same price I take it?

it's xmas soon you're in a good position, be prepared for unreasonable time frame to

complete contracts, given to you by ar5e-hole EA.

get a local solicitor and travel to them to sign paperwork (avoid post this time of year)

I have all rejected offers in writing, so I have no reason to believe the offers weren't passed on.

I did not expect them to turn around at the last minute and say "All offers now refused until all credentials checked" after full asking. Why didn't they say this in the beginning?

I'll just play along now, I have a desire for them to ruin it and they cause the loss of the sale, not me.

---

Yes, 2nd new agent, same price.

Edited by Money Spinner

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Actually that's further good advice from 0.5% and something I should have mentioned.

Some estate agents are relatively honest. Some are lower than a snakes testicles. Until you have proof they are of the former variety you MUST treat them like the latter. That doesn't involve being anything other than studiously polite. Just don't give anything away.

It is entirely possible the ea has a mate in mind for the property. Make it clear you want your offers passed on ensuring that you are clear about the legal position. If this is a repo the possessor won't look kindly on offers not being considered

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Absolutely, this is business. Never will get into a HPC tirade/rant with them, no point.

I have my price set, the rest will be handled politely, as they say "kill them with kindness".

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FWIW, three houses locally that have had EA boards out for at least a couple of years got sold signs in the last fortnight. Something's going on, don't ask me what. Renting round here is stupidly expensive with poor supply which can't help.

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Don't get me wrong, The bottom of the housing market won't be till 2015. Prices are just about getting interesting here.

The mortgage 5 year fix, repayment would be comparable to renting.

I am also a small private investor, I am long in other markets, not property.

Edited by Money Spinner

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I've been suspicious on more than one occassion with houses that I've been interested in. What I mean is that the EA hasn't been interested in doing business with me because I am a cash buyer ie there is no potential extra potential for the EA selling me a mortgage.

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Hmm you're still being too compliant. You don't "have" to meet their advisor at all. They can't make you. Personally I would refuse and say something along the lines of " my solicitor will confirm my ability to pay should an offer be accepted".

I just give them a target they have to bid (best deals according to comparison site) , and they never call back.

If you want to play this further, ask them for a share of the commission on the loan for your cooperation.

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Undiluted nonsense I'm afraid. Under some legislation or other, agents are legally bound to ensure a would-be buyer has the means to pay. This means you do have to reveal details of your financial situation, so the agent can perform his duty and not have his client start to waste money on solicitors etc if there is no way the buyer could ever proceed.

As far as having to deal with a mortgage advisor introduced by the estate agent - you don't have to do that. But, if you need a mortgage, you do have to demonstrate that it is likely you can get one.

This is utter Bullsh1t.

A letter from your solicitor confirming that you can proceed at the offer price is all that is required. There is no way that you have to reveal your financial situation. And no way that you would ever want to. I am not even sure that you are in any way obliged to confirm anything at all.

Do not ever use the EA's mortgage advisor! Apart from the fact that they are not competitive you are laying yourself bare to a party that is employed by the opposition. It would be like playing poker except you have your cards sat face up on the table.

Edited by richyc

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No, that will be because he wants one of his builder mates to buy it. Other than that, they love cash buyers.

Hmmm now that is interesting. One of the houses that I looked at was on the market. Yet when I enquired I was told that it was sold. It remained on the market (not showing sold) for quite a while after that.

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Circa 2004 I looked at a large semi that had been split, rather nicely, into multi-occupancy flats. At 9.00am there were six interested parties viewing and at 9.10 I put in an asking price offer. As I sat in the car a return call came back saying the offer had been accepted. I arranged the formalities and as time dragged on I rang the EA back to discover the house was no longer for sale because someone else had bought it.

I made a few enquiries and traced the new owner, a tame developer known to the agency, in fact the boyfriend of one of the girls who worked there. It ain't what you know...

There is legislation to stop money laundering that insists EAs do fit and proper searches but I'm sure a solicitor's letter would suffice. Most sniffing round your bank balance is to allow them to pass on details to the vendor about the likelihood of a higher bid.

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  • 140 Brexit, House prices and Summer 2020

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