How do offers work?!

[catchyjem]

Hi, I'm trying to sell my house at the moment. My agent has called and said she's received an offer for it, however she can't tell me what the offer is yet as they have to check out the buyers financial position first. Is this the norm? Seems strange that she can't even tell me what the offer is first?

Also, I am planning to buy my next property from the sale of this one plus cash. Does that mean that an agent won't put my offer forward until I prove to them that I have the cash?!

[purpletrees16]

I put offers pre and during COVID, I found during COVID I had to have financial checks to view, and then separate financial checks and identity checks for the estate agent to even tell the vendor the offer. I also was given like 1 hr slot to have a financial check in a few days as it was outsourced.

The first check wasn’t onerous - a Mortgage broker asked our salary and for the aip Amount and for our deposit amount and didn’t check anything.

For the offer checks, some estate agents would accept an email from our broker who had already seen the stuff, others required bank statements, as well as the aip. The most infuriating part was the time lost - and it was pointless to offer on Saturday after the viewing but we kept doing so anyway.

I think it was because of the lack of mortgages, partly.

[msgloria]

"The agent is working on behalf o the seller.

They do not go through someone’s bank statements and work out what they can afford, that’s just ludicrous. And if the agent was working to provide financial services in this manner it would be a conflict of interests."

I have known offers at the current time (I'm in process of buying and selling) to be "qualified" by an in house broker before they are passed on to the seller, which will include a high-level consideration of affordability - salaries and current mortgage payment etc. It happens particularly when there are some doubts / alarm bells ringing with the estate agent about the buyer's position. But if you refuse to believe this happens then fine - perhaps it's different where you live.

[Witsend101]

Why would they check the funds of the person who's made the offer when they don't even know if it's acceptable to you? Sounds a bit strange

[lolabears]

Yes, I crossed out my account number and sort code.

[catchyjem]

It's coming from both sale of house and extra money in the bank.

[Lurchermom]

@catchyjem

Thanks all. I will speak to her tomorrow and find out what's going on!

As for proving we have cash...will they accept statements with blanked out account numbers? I'm so worried someone will be able to steal my money if I show them that!

If your proceeds are coming from the sale of your house usually all you have to do is provide a memorandum of sale from your current property (a document you get from the EA once you've accepted an offer and they've proved their finances). That's all we have had to provide.

[catchyjem]

Thanks all. I will speak to her tomorrow and find out what's going on!

As for proving we have cash...will they accept statements with blanked out account numbers? I'm so worried someone will be able to steal my money if I show them that!

[positivelynegative]

No way I’d be accepting this OP

BTW I’ve had to show we had the cash in the bank to buy our house. No mortgage so a sale and savings. How else would they know?

[Porridgeoat]

Maybe she meant the buyers need to check their finances first before confirming the offer?

Or maybe Mondays viewers have a rapport with the agency? And are a safer bet for you?

You should know the offer though

[PointyMcguire]

Whilst I don’t agree with the EA not telling you the offer, having to prove it’s a serious offer before moving forward is really common at the moment. In fact we had to prove we were in a position to proceed before we were allowed to view properties with some agents.

We made a full asking price offer a few months ago, and were told the offer wouldn’t be accepted nor would viewings be cancelled until we’d proven we were a viable buyer. It was a simple case of sending over our AIP, memorandum of sale for the house we were selling and solicitor details to prove we had the funds to buy the house at the price we’d offered.

[Porridgeoat]

I wonder if Monday’s viewers are related or a friend of hers

[Bluntness100]

@Porridgeoat

Maybe she’s unsure of the buyers or the buyers have history for placing offers without finances in place.

Sure, but she still needs to legally tell the op the offer promptly. She then needs to say this is the offer, but we now need to get proof of funds.

[Porridgeoat]

Maybe she’s unsure of the buyers or the buyers have history for placing offers without finances in place.

[Bluntness100]

@msgloria

I just don't think these things are always black and white... agent might be working with the buyer to help them come up with an offer that the buyer can afford and that the OP might accept. In-house broker could be assisting.

It's not unknown for a potential buyer to say "I really like this house but it's a bit more than I can afford, what might the seller accept?", and then the agent works with the buyer to assess how much they can likely stretch to.

The agent is working on behalf o the seller.

They do not go through someone’s bank statements and work out what they can afford, that’s just ludicrous. And if the agent was working to provide financial services in this manner it would be a conflict of interests.

[ShanghaiDiva]

Not the norm. I purchased a house earlier this year:
Made offer Monday
Accepted Tuesday
Went to estate agent office on Wednesday with passport and bank statement

[msgloria]

I just don't think these things are always black and white... agent might be working with the buyer to help them come up with an offer that the buyer can afford and that the OP might accept. In-house broker could be assisting.

It's not unknown for a potential buyer to say "I really like this house but it's a bit more than I can afford, what might the seller accept?", and then the agent works with the buyer to assess how much they can likely stretch to.

[lolabears]

As pp said, no treading carefully. You need to phone and say you'd like to know the offer and don't be fobbed off. If you accept the offer then they can check your buyers funds.

You shouldn't need a full bank statement just the top bit that states your name and the current balance. If you're also using equity you'll need proof of that too. They'll also ask for id. This is completely normal and necessary for them to mark the property as sstc.

[Bluntness100]

Because she’s doing the min so it doesn’t look like she’s breaking rhe law. She’s told you there is an offer. Legally she needs to tell you what it is, at the same time, but she’s withholding this info.

Have you never seen location location location? When Kirsty or Phil makes an offer? And the agent informs the vendor? That’s how it actually works.

Did that not happen when you bought your current home? Did you not put an offer in and it was passed on and then you needed to prove funds when it was accepted ? That’s normal process?

You didn’t have a process where the agent said well I need to check funds before I ask the seller did you?

[catchyjem]

Actually just thought, why would she tell me there's an offer at all? Surely if she were up to something dodgy she would have just said nothing and not passes the offer on to me at all?

[Bluntness100]

@catchyjem

Thanks so much for the info. I'll have to tread carefully I think!

As for proving I have cash for my next purchase, will an agent ask to see my bank statements or what? Seems a bit dodgy as well!

No, you don’t need to tread carefully, you’re paying for a service, phone them and say you wish to know the offer, it is normal for you to know. It is legally required you know and know promptly.

And yes, you need to provide proof of funds, it’s done when your offer is accepted so yes you need to provide this to them.

You don’t provide proof of funds if your offer is rejected by the vendor. Another reason why your agent is behaving shadey.

[catchyjem]

Thanks so much for the info. I'll have to tread carefully I think!

As for proving I have cash for my next purchase, will an agent ask to see my bank statements or what? Seems a bit dodgy as well!

[Bluntness100]

@JoJoSM2

I can't think why she'd try and prevent a sale?

Because she’s got a pal who’s interested but doesn’t want a bidding war and wants it for a good price. She’ll fob off others. Or perhaps she’d rather the Monday viewers got it as she’ll get a cut from the in-house mortgage broker and conveyancer. Who knows.

Or this, she’s trying to get commission on an in-house broker

But make no doubt, you agent is now acting illegally.

[Bluntness100]

Because op,your buyer is sitting waiting to know if you’ve accepted or not. That’s usually done immediately or next day if you need to think about it.

Your agent is preventing it. Your buyer will be sitting thinking wtaf.

I don’t know why she’s not passing it on, but it’s highly irregular and illegal.

I’d wonder if she knows someone who wants to buy it cheap.

[JoJoSM2]

I can't think why she'd try and prevent a sale?

Because she’s got a pal who’s interested but doesn’t want a bidding war and wants it for a good price. She’ll fob off others. Or perhaps she’d rather the Monday viewers got it as she’ll get a cut from the in-house mortgage broker and conveyancer. Who knows.

[lolabears]

They should tell you.

And yes you will need to demonstrate your affordability to the EA who is marketing the house you want.