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tomandy

First House Buy, I Think The Ea Is Trying It On

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We are a family of 5, good income, renting at the moment. We don't have family to help us out with a deposit and we don't want to take 3 credit cards out and stick a deposit on them as on EA advised.

So with the deposit we have the max we can borrow is 130000. We aren't interested in buying a house to make a profit we just need somewhere to live! We have found a house thats been on the market for a year and a half, dropped from £185000 to OIEO £100000. We went and viewed and have offered £100000. When I phoned to make an offer the EA tried to make me have an appt with their mortgage advisor. I informed her that we had a MA already and weren't interested, could she just pass the offer on to the vendor.

Two days later she phones back and opens with 'so when can I make an appt with the mortagage advisor' I reiterated again that we didn't want an appt and asked what the vendor said about our offer. She then informs me that she hasn't passed the offer on yet as 'I have a number of offers and another viewing today and want to pass them all on together' she then said 'but if you were to have a mortgage with us it would but you at a direct advantage with the vendor'

So shes basically saying that if we had a mort with her she would talk our offer up to the vendor? If indeed there are any other offers!

I am not interested in playing games, we just want a house we can live in as a young family instead of paying rent every month.

Any advice here?

Thanks for reading

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With transactions currently very low, EAs are no doubt looking for every source of revenue they can tap into. I imagine the largest pay cheque they can get from you will be if you buy the house though and they wont want to lose that. Hold out here, go lukewarm on them. I think so far you've handled this well.

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The EA appears to be acting in their own interest in preference to that of the vendor. I don't believe there is any legal reason not to contact the vendor directly and appraise them of the situation so long as you do not offer to circumvent the EA as part of the purchase. But maybe you can take advice from trading standards first?

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I would recommend that your next step would be to confirm your offer to the EA in writing, including a brief outline of your purchasing position and mortgage arrangements. Ask that the EA confirms to you in writing that they have reported your offer to their client.

A relatively firm but polite down should do the trick.

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This sort of behaviour is not acceptable.

EAs are obliged to pass on all offers that are put in writing (unless it falls short of a certain threshold, or some other similar instruction by the vendor), so remind them of this the next time, and tell them that you will make the offer directly to the vendor unless they do so.

If you don't use the EA's FA services they are still obliged to treat you fairly and are in fact in breach of their code of practice if they do not do so.

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Well I called back this evening to see if they had passed the offer on. Spoke to another agent and was given the hard sell for at least 5 minutes and asked repeatedly if I would come to them for a mortgage. After firmly saying NO 5 times, I was told that 'most' vendors want the security of knowing their buyers have a mortgage with the EA they are selling with.

When we finally got to the end of that conversation I was once again told well we are still getting offers in so haven't passed anything over to the vendor yet. I told her then that I wanted them to pass the offer today or tomorrow morning or we would be going to the vendor ourselves.

<Scared>

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Yes, it does sound as if they are trying it on. You may not be 'interested in playing games' but the EA has a clear incentive to maximise profits by selling mortgages and other financial services. I knew someone whose offer was probably refused due to the fact they arranged their own (more competitive) mortgage through a financial adviser.

From a moral perspective, I suppose the correct thing to do is stand your ground and hope for the best.

From a slightly more practical perspective, you could consider going through with an interview with their mortgage broker and compare numbers. If there isn't much difference in the costs, perhaps it's best to just hold your nose and go with their services? A complication with this approach is that you don't want to flaunt the fact that you can afford to borrow £130K - they might start even more 'games' to get more once they know what you're worth.

The last reference below, for complaining to the OFT, might be useful if this situation goes wrong.

http://www.timesonli...icle6935216.ece

http://www.tpos.co.u...ctice_sales.htm

http://www.oft.gov.u...gent-complaints

Best of luck and if this is a national chain, any chance of telling us who it is?

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The Estate Agent is definately trying it on and in clear breach of the Code of Practice for Sales - see the Property Ombudsmans website:

http://www.tpos.co.uk/

For the Code of Practice for Sales - see Section 6:

http://www.tpos.co.uk/downloads/IES02_code%20of%20practice_sales_FINAL.pdf

Submission of Offers

6a By law, you must tell sellers as soon as is reasonably possible about all offers that you receive at any time until contracts

have been exchanged (in Scotland, missives have been concluded) unless the offer is an amount or type which the seller

has specifically instructed you, in writing, not to pass on. You must confirm each offer in writing to the seller, and to the

buyer who made it, within two working days.6b You must keep a written or computerised record of all offers you receive – including the date and time of such offers – and

the seller’s response. Such records should be made promptly.

Discrimination

6c By law you must not discriminate, or threaten to discriminate, against a prospective buyer of the seller’s property because

that person declines to accept that you will (directly or indirectly) provide services to them. Discrimination includes – but

is not limited to – the following:

• Failing to tell the seller of an offer to buy the property.

• Telling the seller of an offer less quickly than other offers you have received.

• Misrepresenting the nature of the offer or that of rival offers.

• Giving details of properties for sale first to those who have indicated they are prepared to let you provide services to

them.

Making it a condition that the person wanting to buy the property must use any other service provided by you or

anyone else.

Putting your offer in writing with copies to the EA and to the vendor is a good idea making sure that your offer is subject to them taking the property off the market.

However, the situation plays out a formal complaint should be lodged about this EA - if complaints aren't made it just ensures that they continue with their malpractice.

I would also suggest that using an EA's FA, or Mortgage Advisor should never be considered. Although it is illegal they frequently pass on financial information to the EA who then uises that info to pressurise the potential buyer to push up their offer to their maximum stretch (and beyond!).

Edited by Alfie Moon

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Interesting that it is Bairstow Eves - we tried to view a property with them and they told us we had to go and see their mortgage adviser first. We told them we wouldn't. Eventually they backed down. Dopes.

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The house has been on a year and a half and suddenly there are multiple offers to put to the vendor??. There goes the flying pig.

It's absolute ******** that buyers prefer someone who has arranged their mortgage through the EA. If you did go ahead they'd be telling you next no doubt that you need to use the surveyor and solicitor that they recommend leading you to overpay for poor service.

I would be informing the vendor direct.

Good luck with standing up for yourselves.

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The house has been on a year and a half and suddenly there are multiple offers to put to the vendor??. There goes the flying pig.

It's absolute ******** that buyerssellers prefer someone who has arranged their mortgage through the EA. If you did go ahead they'd be telling you next no doubt that you need to use the surveyor and solicitor that they recommend leading you to overpay for poor service.

I would be informing the vendor direct.

Good luck with standing up for yourselves.

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Thanks for all the advice. I spoke to the EA again on Monday (a week after we made the offer) and they are waiting for the vendor to get back to them.

However I popped a note through his door reiterating our offer, the position we are in and a contact number. He contacted me to say that he had no intention of selling the house for the £100000 price tag, the EA's had told him to price it that low for the open day in the hopes of a bidding war.

So that was all a big fat waste of time really. I'm slightly disappointed as it was the first house that had come on to the market for a while that was within our price bracket and not a 1 bed exec flat or 2 bed terraced in the middle of the local sink estate.

Back to rightmove I go!

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I'm curious to know what the owner originally paid for the property - you might have an idea if your offer would put them in negative equity. I bet in six months time you'll be getting a phone call from one desperate owner!

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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