Making an offer

[anonymous-user]

FrankAbagnale said:

Not come in to play just yet, but it isn't long until this happens. We already need to get anti money laundering information from sellers and as you've said it'll be buyers soon.

It's a bit of a minefield, the fines are huge for non compliance and I am a little concerned some of our staff won't get to grip with the complexities soon enough.

Edited by anonymous-user on Monday 31st July 14:15

We are supposed to be implementing it now, but we're yet to receive the forms and any training from the boss. Thankfully we're a small firm with pretty professional staff, so should be ok.

Considering that solicitors do this for their clients anyway, I really don't see the point.

[DeltaTango]

Inkyfingers said:

FrankAbagnale said:

Not come in to play just yet, but it isn't long until this happens. We already need to get anti money laundering information from sellers and as you've said it'll be buyers soon.

It's a bit of a minefield, the fines are huge for non compliance and I am a little concerned some of our staff won't get to grip with the complexities soon enough.

Edited by FrankAbagnale on Monday 31st July 14:15

We are supposed to be implementing it now, but we're yet to receive the forms and any training from the boss. Thankfully we're a small firm with pretty professional staff, so should be ok.

Considering that solicitors do this for their clients anyway, I really don't see the point.

It is all a bit confusing isn't it. We are now carrying out AML checks for buyers (only once offer agreed) as of the 26th July. I also believe that solicitor's checks should suffice for both vendor and purchaser, but then that means HMRC can't dish out hefty fines to us!

[BenjiS]

LiamD said:

I just want to open a dialogue with the vendor and see what we can agree on before I have to go and listen to some sales bull about why their solicitor/mortgage advisors are the best.

I will be writing the email later and sending it off, I expect it to be laughed out, but god loves a trier, right?

There's also no reason why you can't put a physical letter through the door of the property, directly addressed to the vendor. Just put in the same information as above, offer, chain, mortgage in place, solicitor, etc. If the vendor is anything like me, and your offer isn't a micky take, then you might get a direct call from them.

[DeltaTango]

BenjiS said:

LiamD said:

I just want to open a dialogue with the vendor and see what we can agree on before I have to go and listen to some sales bull about why their solicitor/mortgage advisors are the best.

I will be writing the email later and sending it off, I expect it to be laughed out, but god loves a trier, right?

There's also no reason why you can't put a physical letter through the door of the property, directly addressed to the vendor. Just put in the same information as above, offer, chain, mortgage in place, solicitor, etc. If the vendor is anything like me, and your offer isn't a micky take, then you might get a direct call from them.

Some vendors respond well to this, and indeed in situations where there are multiple bids on a property, I have encouraged buyers to interact with the vendor independently should they wish (if I know my client wouldn't be put off by such an approach). Others however would not appreciate it at all, and it would prejudice them against that particular buyer.

Sadly it doesn't seem as though the OP is dealing with the type of agent who would provide this guidance so it's a lottery as to which route is best.

[TheAngryDog]

DeltaTango said:

BenjiS said:

LiamD said:

I just want to open a dialogue with the vendor and see what we can agree on before I have to go and listen to some sales bull about why their solicitor/mortgage advisors are the best.

I will be writing the email later and sending it off, I expect it to be laughed out, but god loves a trier, right?

There's also no reason why you can't put a physical letter through the door of the property, directly addressed to the vendor. Just put in the same information as above, offer, chain, mortgage in place, solicitor, etc. If the vendor is anything like me, and your offer isn't a micky take, then you might get a direct call from them.

Some vendors respond well to this, and indeed in situations where there are multiple bids on a property, I have encouraged buyers to interact with the vendor independently should they wish (if I know my client wouldn't be put off by such an approach). Others however would not appreciate it at all, and it would prejudice them against that particular buyer.

Sadly it doesn't seem as though the OP is dealing with the type of agent who would provide this guidance so it's a lottery as to which route is best.

Remembering that the Vendor still has to pay their bill to the EA, of course

[theguvernor15]

We had this when we just bought, asked me to pop in.
I said i didn't have the time, so i gave them the info over the phone, i told them we had a mortgage offer in principle & that it was through a broker & wasn't interested in using anybody else for the offer.
They phoned back in an hour and said all was fine.
I literally had to give them my name/address (which they had already), i gave them my brokers number and they just spoke to him.
I think it's all a load of bks personally and they just want to try and get you to take a mortgage out through them.
If you have a mortgage in principle just tell them this and give them your brokers details.

[BlueFiestaST]

I had the same with a company which is named similar to 'our move'
I asked for a viewing and was told I had to go in, speak to their mortgage advisor and be 'qualified'
I told him I had my broker already but he still said I need to go in.

Anyway, they couldn't get in touch with the seller that day as the seller had the keys. The following day I called back 3 or 4 times. In the afternoon was told that they had an offer the day before and the seller had accepted.

Second house that we liked the look of that someone had already viewed it, put an offer in and the buyer had accepted before we could even get a viewing.

Checking rightmove every day now...

[anonymous-user]

BlueFiestaST said:

Checking rightmove every day now...

If you're after the kind of property that goes quick (and you're in a good position as a buyer), then you need to call or visit all the local agents and register your details with them.

Those types of property are often sold before they get as far as putting it on Rightmove.

[DeltaTango]

TheAngryDog said:

DeltaTango said:

BenjiS said:

LiamD said:

I just want to open a dialogue with the vendor and see what we can agree on before I have to go and listen to some sales bull about why their solicitor/mortgage advisors are the best.

I will be writing the email later and sending it off, I expect it to be laughed out, but god loves a trier, right?

There's also no reason why you can't put a physical letter through the door of the property, directly addressed to the vendor. Just put in the same information as above, offer, chain, mortgage in place, solicitor, etc. If the vendor is anything like me, and your offer isn't a micky take, then you might get a direct call from them.

Some vendors respond well to this, and indeed in situations where there are multiple bids on a property, I have encouraged buyers to interact with the vendor independently should they wish (if I know my client wouldn't be put off by such an approach). Others however would not appreciate it at all, and it would prejudice them against that particular buyer.

Sadly it doesn't seem as though the OP is dealing with the type of agent who would provide this guidance so it's a lottery as to which route is best.

Remembering that the Vendor still has to pay their bill to the EA, of course

Absolutely

Especially since the EA has generated the lead, paid for the marketing and will be handling the conveyancing of course.

[LiamD]

Bump.

After my offer was rejected, and two months of silence, I made a new offer and the EA has come back to me and said the vendor is not prepared to consider any offer until I have made an offer to be financially qualified, why on earth do I have to be qualified before I can even make an offer?

Does anyone think that if I pass them the contact info for the broker that would be acceptable? I work 12 hours nights shifts between 9pm-9am, by the time I am up they’re always closed, my only day off currently is a Sunday and they aren’t open then.

Who knew trying to buy a house would have to be so complicated :/

[ou sont les biscuits]

LiamD said:

Bump.

After my offer was rejected, and two months of silence, I made a new offer and the EA has come back to me and said the vendor is not prepared to consider any offer until I have made an offer to be financially qualified, why on earth do I have to be qualified before I can even make an offer?

Does anyone think that if I pass them the contact info for the broker that would be acceptable? I work 12 hours nights shifts between 9pm-9am, by the time I am up they’re always closed, my only day off currently is a Sunday and they aren’t open then.

Who knew trying to buy a house would have to be so complicated :/

It was explained above. The EA and the seller need to be sure that you are in a position to be able to buy if your offer is accepted. Most mortgage offers are time limited, so the one you had originally might need to be refreshed.

We're in a chain at the moment where the whole thing nearly fell apart because one of the people in the chain had a mortgage offer with an expiry date, which was before the date we could complete.

Edited by ou sont les biscuits on Saturday 21st October 10:57

[Slagathore]

LiamD said:

Bump.

After my offer was rejected, and two months of silence, I made a new offer and the EA has come back to me and said the vendor is not prepared to consider any offer until I have made an offer to be financially qualified, why on earth do I have to be qualified before I can even make an offer?

Does anyone think that if I pass them the contact info for the broker that would be acceptable? I work 12 hours nights shifts between 9pm-9am, by the time I am up they’re always closed, my only day off currently is a Sunday and they aren’t open then.

Who knew trying to buy a house would have to be so complicated :/

Can you pop round to the house and ask the vendors if the offer has been put forward to them?

The property has been for sale for a while now, if the agents are being this stupid with everyone, that could have something to do with why it isn't selling. Or it's overpriced etc.

Or have you made an offer well under asking?

It's none of their business how much and which bank is lending you money, all they need to know is that you have the money available.

[C Lee Farquar]

Slagathore said:

It's none of their business how much and which bank is lending you money, all they need to know is that you have the money available.

If I were the one selling I would want to know. By the OP's admission he doesn't know the procedure. Very often deposit money is more tied up than purchasers think or let on.The percentage being borrowed and multiple of incomes will affect the likelihood of a mortgage offer being forthcoming. etc. etc.

It's a shame most corporate estate agents abuse this process to sell their wares.

OP your financial situation is as important to the vendor as the price you are offering. You are more likely to have a lower figure accepted if you can demonstrate you are in a strong position.

[Slagathore]

C Lee Farquar said:

Slagathore said:

It's none of their business how much and which bank is lending you money, all they need to know is that you have the money available.

If I were the one selling I would want to know. By the OP's admission he doesn't know the procedure. Very often deposit money is more tied up than purchasers think or let on.The percentage being borrowed and multiple of incomes will affect the likelihood of a mortgage offer being forthcoming. etc. etc.

It's a shame most corporate estate agents abuse this process to sell their wares.

OP your financial situation is as important to the vendor as the price you are offering. You are more likely to have a lower figure accepted if you can demonstrate you are in a strong position.

I partly agree, but to know how much he can borrow just means they can try and bump the price up or play hardball when it comes to negotiations. If he's gone back in with a low offer because the house isn't getting any interest, the agents could use that info to work out how much more he might be persuaded to offer. Or if they think he's really keen and keeps coming back, they might think they might be able to get a bit more money out of him etc.

All they need to know is if he is proceedable. I think just saying he has an AIP and having his mortgage person email over the confirmation of that should be sufficient.

The house has been on since at least the first post was created, so they're obviously not inundated with offers/buyers. I could understand if the house just went on and they wanted to make sure only serious buyers ready to go were offering and they had sealed bids etc where wasting months with 1 buyer will lose the others, but that doesn't appear to be the case here.

[FrankAbagnale]

My suggestion -

Dear Agent,

Regarding - House Address

I would like to make a formal offer on the house of £xxx,xxx.

I am currently in rented accommodation/living with parents/whatever your situation is and would ideally like to exchange on xxxx with completion shortly after. I am happy to work with the vendor on these dates should they have a different preference.

I have a mortgage agreed in principle via xxxx mortgage consultants and deal with Mr/Mrs who can be contacted on xxxx to confirm any specifics you need.

My solicitor has confirmed they are available to get the legals sorted in good time and should my offer be accepted I will provide you with their details without delay.

I would appreciate confirmation in writing of my offer being received and passed on to the vendor and the same with the acceptance or rejection of my offer.

I look forward to hearing from you.

---

For your information here is a link below to the property ombudsmen code of practice for agents
http://www.regal-estates.co.uk/wp-content/uploads/...

7. Offer
s
7a
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 2 working days.
7b
You must keep a written or electronic contemporaneous record of all offers you receive including the date and time
of such offers and the seller’s response.
7c
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 related 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.

[LiamD]

ou sont les biscuits said:

It was explained above. The EA and the seller need to be sure that you are in a position to be able to buy if your offer is accepted. Most mortgage offers are time limited, so the one you had originally might need to be refreshed.

We're in a chain at the moment where the whole thing nearly fell apart because one of the people in the chain had a mortgage offer with an expiry date, which was before the date we could complete.

Edited by ou sont les biscuits on Saturday 21st October 10:57

Yeah, I understand what you’re saying, my issue is mainly I don’t agree I should show my hand, as another poster has mentioned, they will know how much I can offer and could play hard ball, I’m in a position where by I need to get moving with it, so I’ll be contacting them and seeing which info they need.

The house was originally up at 155k, I offered 135k based on a a bigger house in the same street; which had a new kitchen and bathroom selling for 148k. This was rejected, but I expected that and hoped there would at least be a dialogue opened!

The house has been reduced by 5k but I have offered 140k now, which is when they’ve come back to me with the financial qualification nonsense.

[BenjiS]

LiamD said:

The house has been reduced by 5k but I have offered 140k now, which is when they’ve come back to me with the financial qualification nonsense.

You need to prove to them you've got 140 grand. How you do that is up to you, but would usually involved showing proof of deposit on a bank statement or similar, and a mortgage acceptance in principle for the rest. Without showing you can actually afford to buy it for what you're offering, you're not going to get anywhere.

[LiamD]

BenjiS said:

You need to prove to them you've got 140 grand. How you do that is up to you, but would usually involved showing proof of deposit on a bank statement or similar, and a mortgage acceptance in principle for the rest. Without showing you can actually afford to buy it for what you're offering, you're not going to get anywhere.

Yeah, I understand that, it’s frustrating, as I don’t really recall my parents having there issues, maybe it’s an age thing? Or it’s changed since they last bought a property.

[TA14]

LiamD said:

so I’ll be contacting them and seeing which info they need ... I expected that and hoped there would at least be a dialogue opened!

How about trying Frank's letter or a slight variation?

[BenjiS]

LiamD said:

BenjiS said:

You need to prove to them you've got 140 grand. How you do that is up to you, but would usually involved showing proof of deposit on a bank statement or similar, and a mortgage acceptance in principle for the rest. Without showing you can actually afford to buy it for what you're offering, you're not going to get anywhere.

Yeah, I understand that, it’s frustrating, as I don’t really recall my parents having there issues, maybe it’s an age thing? Or it’s changed since they last bought a property.

I expect they probably did, you just weren't aware of it. All the houses I've bought (all three of them :-) ) over the last twenty years, I've had to do this.