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Estate Agent Questions

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  • 13-08-2014 8:39pm
    #1
    craic90
    Registered Users Posts: 44 ✭


    What gain would an estate agent get nearing the end of the offer stage by asking what percentage of your offer will be mortgaged?

    There have been several offers. Ours is currently the highest, and I'm not sure if anyone will go higher. (We are already being generous). Why would this information be asked of us at this stage?

    We were also asked if we had approval.

    Had anyone else had this experience?


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    #2
    BeatNikDub
    Closed Accounts Posts: 603 ✭✭✭BeatNikDub


    Hi there!

    I used to work in admin in residential estate agencies and have a few years experience!

    Firstly, I can tell you I have never come across ghost or phantom bids and these days all bids MUST, by law be recorded and are audited, so certainly if you are dealing with a bigger name you can be pretty sure you bids are being dealt with according to law. The fines and penalties are pretty massive!

    Any good agent will get proof of approval first. They don't need to know how much for or what is in your account it is just a letter from the bank to confirm you are mortgage approved.
    This makes it fairer for everyone in that the bids are not being raised up and up by folk that don't even have the funds in place to buy. It means everyone who is bidding is in a position to do so and once an offer is accepted the sale shall move on instantly, no hanging around for possible mortgage approval, which takes time and has a huge risk of it all falling through and going back to market.

    With regards you being asked what the percentage is I am imagine they are just trying to determine where your funds are coming from, ie is it part mortgage/part cash and if so then they will need to get proof for both.

    Knowing this also helps the vendor make a decision on which bidder to go for with regards risk, not just whoever bids the highest.

    I have witnessed many an agent get relentless abuse about asking for proof of funds but I completely understand why it is done.

    However all you should have to give is the one liner from your bank to say you have been approved or if cash a letter from your solicitor. No amounts need to be discussed, whatever you decide to bid is up to you!


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    #3
    whippet
    Registered Users Posts: 7,687 ✭✭✭whippet


    my cynical take on this would be .. if you were offering 200k and they know that you have a 60% LTV mortgage approved ... if you went to a 70% LTV you would have a much larger budget.


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