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First time buying - need advice

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  • First time buying - need advice

    Hi

    I am a first time buyer and want some advice about the process of buying.

    I have offered on a house which was accepted but not taken off the market.

    The estate agent is asking me to come in and see their financial advisor to verfiy I have the money to buy. I have already got an agreement in principle for a mortgage and have deposit money ready.

    The estate agent has seen my agreement in principle but says I need to prove I have the deposit money and wants me to bring in my wage slips and my bank statements showing the deposit money along with my solicitor details.

    I am confused because I thought once my offer is accepted I simply phone my bank tell them to progress my application for mortgage and provide them with the estate agent details to contact them etc.

    The estate agent was really rude to me forcing me to attend this meeting otherwise she cannot guarantee to her client (the seller) that I have the funds available.

    It just seems strange as none of my other family members/ friends who recenlty bought had to do this.

    I welcome your advice

  • #2
    Re: First time buying - need advice

    The agent does have an obligation to confirm to their client (the owner of the property) that your offer is sound and to do so they should take reasonable steps to ensure that you have the means to honour the offer.

    However, often agents use this ploy to simply try to get you into the office to see their financial adviser in the hope they can then convince you (possibly with somewhat questionable methods) to sign up to arrange your mortgage and insurance through their own financial service provider as this will generate commission for the company, and no doubt a bonus for the negotiator.

    You do not have to do this, you can apply for your mortgage from wherever you choose, but they may put pressure on you with threats such as you have mentioned (i.e. - you might lose the house, another buyer might make a better offer, the vendor might not agree to take the house off the market etc etc).

    If you are reluctant to show them what they are asking for explain to them that you will show the documents to your solicitor and that they will confirm to them in writing that they have seen these and that you are able to buy the property.

    If the agent is unhappy with this then they are almost certainly after your mortgage business.

    Bear in mind though that it is possible that seeing their adviser might actually be beneficial as approaching your bank directly for you mortgage and protection may not be the best option for you, however I would generally suggest the best route is to find an independent whole of market adviser (not all estate agency based advisers are whole of market).

    If the agent is a member of the Property Ombudsman Service (they ought to be) then explain to them that you have read sections 7c and 8 of the code of conduct and that you know about the laws of conditional selling which state that they cannot make it a condition of the sale that you also buy financial services products from them.

    Also explain that you will deal with them via your solicitor if you feel that they are not dealing with you in a manner that complies with the code.

    Do all this very carefully though, as they could easily try to sell the property to another buyer if you upset them too much and it would be difficult to prove if they've done this out of malice against your actions. If you make too much of a nuisance of yourself they may think you'll be too awkward and unreasonable as a buyer.
    ____________________________________________
    Property for sale in Torquay

    www.thomasdobner.co.uk

    Comment


    • #3
      Re: First time buying - need advice

      Thanks for your response.

      I spoke to a different branch of the same EA to understand what this 'qualification process really is' they stated that basically they do not put up any offers to the vendor unless the buyer has been qualified i.e. you go see their financial advisor and show you 3 months wage slips, ID and proof of address.

      I call back to the branch which is where I put my offer in as I needed to move the appointment and double checked what I need to bring in - they say only my AIP and proof of funds.

      Why is it that two branches of the same estate agent have different policies about qualifying a buyer. She then told me htat 3 other buyers who offered are coming in to qualify.

      So when I was told that my offer had been accepted - really it has not been accepted at all and infact he has accepted offers from all interested parties.

      If I don't go in to show statements of proof of funds the vendor will be told they cannot say they are sure that I have all funds available and it is his decision which offer he accepts.

      I am amazed that they have told me my offer is accepted when infact it is not really as it is subject ot this qualification.

      I have the funds but my bank statements is my personal information I do not want them to know how much money I really have. Especially when one branch doesn't require proof funds and the other does.

      Uff my parents are gifitng me the deposit they are not prepared to show their statements for proof of funds especialyl since the desposit money is coming from several bank accounts.

      Comment


      • #4
        Re: First time buying - need advice

        It sounds like the company you are dealing with is not one of the better estate agents out there, in fact it sounds like they are the type of company that gives the whole industry a bad reputation.

        Clearly your offer cannot have been accepted by the vendor if offers are only passed on after the buyer is qualified and you haven't yet done that.

        If their story regarding having three other offers is correct then it is highly likely that the buyer who will give them the most additional revenue by signing up for the largest package of mortgage and insurance products will be the one to miraculously be accepted by the vendor.

        Agents are obliged by law to pass on all offers to their vendors (see section 7a of the TPOS Code of Conduct) unless it is of a type specifically agreed as not acceptable by the vendor beforehand.

        I wonder if the owner of the property is aware that there are 4 offers on the property. I also wonder what they would say if you knocked on their door and politely asked them if the agent has discussed your offer with them?
        ____________________________________________
        Property for sale in Torquay

        www.thomasdobner.co.uk

        Comment


        • #5
          Re: First time buying - need advice

          I would suggest that the agent is taking a little bit of advantage of the fact that you are new to this. Each brach of an estate agent may actually be a different franchise which will explain the varying answers you are getting.

          Ask her firmly if the offer has been accepted or not. If it is true that there are that many offers coming in, (and I doubt that it is! - I am inclined to believe she is trying to make you do what she wants which is to come in and use their broker), tell her you are not willing to get into a bidding war about the property so can she call you when the owner has decided who to go with. Of course there is the chance that she is telling the truth - I really doubt it.

          Did you tell her how much you loved the property by any chance? She does not need to see your deposit, she can have your solicitors details - He/she will need to see it at some point. Do not let her pressure you into anything.

          If you really like the property and you are willing to risk the wrath of the agent, then go see the seller or write a letter detailing your offer. You can still go through the agent but at least make sure the seller knows about your offer.

          Hope that helps.
          My opinion but I hope it helps you.
          Need to sell a house?
          Need help buying a house for investment or as a home?

          Comment


          • #6
            Re: First time buying - need advice

            It's important from the vendor's perspective that you can prove you are a serious buyer with the funds in place to make good on your offer. That is why the agent asks for proof of your mortgage and deposit. We have just been through the process of buying our first home. We made our offer subject to the property being taken off the market immediately. When the agent called us back that day with the news that the vendor had accepted, his next question was to ask if we could provide proof of our finances in the shape of a mortgage agreement in principle and proof of our deposit savings (we provided a copy of our most recent savings account statement and the AIP). We had these things ready and emailed copies immediately. He did ask if we wanted to speak to their financial advisor, but we politely made it clear that we had agreed our mortgage and did not want to.

            Comment


            • #7
              Re: First time buying - need advice

              Thanks all.

              I stuck to my guns and said there is no way they are seeing my financial statements I don't agree with anyone seeing how much I really have.

              I used to work for Foxtons (5 years ago) albiet in Lettings but I went through the sales training so I know how it all works. I even let the EA know that. The EA did keep saying to me you really like this don't you - I said its a nice house but it is a house and there will always be other houses. I think she believed I really loved it so much I would do what it takes to get ti but forgetting that I was an EA once myself.

              In the end the EA came back asking for solicitor details ( I dont have these as my bank who I am taking a mortgage with will instruct a solicitor for me) - I said to her I hadn't proceeded with my application because I was left unsure about whether my offer was accepted at which point she said of course he has accepted your offer - so all these conversations trying to force me to come in even though my offer had been accepted was unneccessary in my opinion. Anyhow the sale is going through property is sold stc.

              I since found out that my bank use Countrywide for valuations and surveyors and that the EA is part of Countrywide Group - might explain why they are so miffed about me not coming in as they have lost out on referral commission.

              It just amuses me now because now they just speak to me in a rude manner and keep reiterating that the vendor is the client - yes I don't disagree with that - however I am a future client and I most definately will not be instructing them if and when I come to sell the house.

              Comment


              • #8
                Re: First time buying - need advice

                Good for you! Lil Mis.

                Sometimes standing your ground is the best approach.

                I hope you enjoy the house!
                My opinion but I hope it helps you.
                Need to sell a house?
                Need help buying a house for investment or as a home?

                Comment


                • #9
                  Re: First time buying - need advice

                  If you are like most first-time home buyers you have probably listened to friends family's advice, many of whom are encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do.

                  Comment


                  • #10
                    Re: First time buying - need advice

                    Buying a property will probably be your biggest single investment. So it is important to work out the total cost and how much you can really afford. You also need to plan for increases in your future outgoings, like a rise in interest rates.

                    Comment


                    • #11
                      Re: First time buying - need advice

                      What I find interesting about the housing problem is that ten years ago, if someone in their mid-late twenties still lived with their parents, it would have been seen as highly deviant. Now it's increasingly the norm to do so.

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