Reply to: Buying a house

[BlasterBates]

There are two separate issues. They need a signature and id before passing on the offer, that sounds pretty professional to me.

Now with the mortgage they haven´t said they wouldn´t pass the offer on. Of course they´ll pass it on, they´ve no motivation for refusing to pass offers on and delay selling the house which costs them money.

The reason they´re asking you this is to find out how reliable you are, i.e. will your mortgage application fall through.

Houses aren´t sold to how much you can afford they´re simply sold to the highest bidder. You don´t have to raise your bid if you don´t want to.

My advice, just let then know if it confirms your status as a reliable buyer.

and remember its you who decides who much you want to pay. Just stick to your bid.

[Epiphone]

It's also ilegal for the EA not to pass an offer on.

[lexington_spurs]

[QUOTE=TheRightStuff]

"Sounds a bit suspect to me."

From my recent experience certain estate agents appear to prioritise potential buyers in this order:

- someone who might sell their own property through the same agent or a mate of his and who is going to go with their recommended surveyor, solicitor, mortgage deal, insurances
- someone who is going to go with their recommended surveyor, solicitor, mortgage deal
- anyone else

"The agency is a very well known and one of the largest in the UK."

Other ways of saying this would be "most aggressive/ruthless". BBC did an undercover at <insert name of red-coated verminous mammal>tons in the last year and they would be instructed to lie, cheat, misrepresent, whatever necessary to get the best commission and hit targets. That also included telling certain vendors to accept lower offers if it meant the sale went through in a particular period of theirs.

I got an independent mortgage broker to get me a standard A&L mortgage. The broker gets to speak to the underwriters and hence put in a good word for you and you get the mortgage based on contract rate etc rather than salary. But the b.llocks doesn't stop there - A&L wanted us to use surveyors who quoted £1200 and £950 for the full survey .. I got a guy to come in from Winchester to NE London and he charged £600. Now A&L want to add £25 to the mortgage because I don't want to use their quotes for insurances! They're going to be told that's not on.

Good luck, just assume you are being lied to at all times and act accordingly and you should be ok.

[tim123]

I'd be asking them what the minimum deposit is that will be required and politely informing them that how you will be funding the rest of the purchase is none of their business. There have been cases where the financial services arms of Estate Agents pass on what you can actually afford to enable the Agent to bump up the offer so they make more money.

It might not be any of their business, but it's certainly that of the Buyer's.

You don't have to be in the house selling game for long to find out that the major reason your sale falls through is because your prospective buyers can't actually afford it.

I personally would never accept an offer from a buyer unless I knew exactly what their mortgage status was.

tim

[Sysman]

good advice. I'll do that.

That's the way I got a house in the end. A bit later my sister was buying and found it impossible to get anything other than an endowment mortgage.

The answer to that one was to accept it, make the first payment, then request a swap to a normal repayment mortgage.

[TheRightStuff]

They are just looking to sell you a mortgage.

Some agents are rumoured not to pass on offers from buyers who aren't 'buying' their mortgage from them.

I would humour them and when you have had you offer accepted (or not) tell them that you are getting a mortgage elsewhere.

tim

good advice. I'll do that.

[threaded]

I remember a mini-demonstration outside one estate agents on a Saturday morning in the 90s, similar sort of scam. The protesters had placards and a loud hailor. Most amusing.

As if a silly little demo would stop some of the property scams that went off in Doncaster...

[tim123]

we went to see a house at the weekend and have put an offer in today.
The estate agent have said they can't pass the offer on to the buyers until we come in and sign a money laundering form and show them a form of id.
However, they also want to know the size of the deposit and the mortgage we are going to take out.
I spoke to the agent who are selling our house and they have said they should only be doing this once the offer has been accepted.
they want us to see the agencies financial advisor. However, if I tell him our financial situation they could then go back to the agent and tell him we can afford more.
Sounds a bit suspect to me.
The agency is a very well known and one of the largest in the UK.
I really am not happy about showing id, signing documents and speaking to an agency financial advisor without an offer being accepted.
What do you guys think?

They are just looking to sell you a mortgage.

Some agents are rumoured not to pass on offers from buyers who aren't 'buying' their mortgage from them.

I would humour them and when you have had you offer accepted (or not) tell them that you are getting a mortgage elsewhere.

tim

[BrilloPad]

name and shame

This sort of thing happened a few times in the late eighties - in the current market agencies will try anything.

[Sysman]

the property is empty. Their mother died (not in the house) so that won't work.

BTDT. Estate agents really love this one.

Think recruitment agents are bad?

In the 1980s I had the cash for a run down cottage (owner had died, family lived a long way away) but the agents did everything they could to stop me buying it. They wanted to sell to someone who needed a mortgage.

In the end it went to auction for a knock down price, but of course not until at least half a dozen folks had paid for surveys and mortgage arrangement fees just to find that nobody would lend on the property (no bathroom or WC, roof needed some work etc).

The builder who bought it did it up and sold it for about 3 times what he'd paid.

All snouts in the trough, I'm afraid. The family of the guy who'd died lost a lot of wonga.

I lost too. It was an ideal property for a young contractor who had cash reserves to pay for a renovation, worked away a lot of the time and therefore could have coped with the inevitable building mess.

[Swiss Tony]

Hi you only need money laundering information: ID and a proof of address if you are looking to purchase anything that is regulated by the Financial Services Authority i.e. insurance, mortgages etc

As the property market is not regulated there is no need.

It does look a bit suspect; you do not need to sit down with the companies financial advisor before putting in a bid. You can get a mortgage in principle anywhere. Your bank should do it for free, and once the offer has been accepted you can go to the market and find the best rate. (or use a Independent Mortgage broker) It looks like they are trying to line up their front end and back end by using their own guys to sell the mortgage and insurance.

Also note you do not need to legally have any life / critical illness cover in place to have a mortgage. I would recommend that you do look into it but it is not a requisite. I have seen a number of people who have been ‘sketched up’ in this way and are paying silly amounts into policies they do not need.

[TheRightStuff]

Also, how do I know what mortgage I should take out if I don't know what I'm paying for a house.
Surely the steps are :

put your house on the market

look for houses and put an offer in. Hopefully you sell your house before but often it doesn't happen that way.

Offer is accepted.

Look for mortgages and solicitor.

Sign money laundering, show id and some form of letter saying you can afford the house.

Or is that too sensible.

[Alf W]

I'd be asking them what the minimum deposit is that will be required and politely informing them that how you will be funding the rest of the purchase is none of their business. There have been cases where the financial services arms of Estate Agents pass on what you can actually afford to enable the Agent to bump up the offer so they make more money.

[milanbenes]

I think they want you to buy a financial product from them, there's good money in selling financial products

Milan.

[TheRightStuff]

Ask them on what basis they come out with that crap.

I thought uk agents had an obligation to pass on all offers - if not then they are not serving their clients. easily checked.

Explain that you know where the property is and will be dropping in to explain to their client that the agent is refusing to forward your offer.

the property is empty. Their mother died (not in the house) so that won't work.