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Original poster

Do u reveal max budget to EA?

36 replies

13579db · 12/05/2021 15:13

Just that really - if you have mortgage approval for much more than the property sale price, as a buyer do you let agent know how much you've been lent by mortgage?
My worry is that the EA could just push up the price anyway if they know the figure, assuming you'd probably pay the max if you liked the house enough

OP posts:
mobear · 12/05/2021 15:18

We did and I didn't feel the EAs tried to push us to the top end of our budget. We ended up spending around 25% less than we could have. Nothing on the upper end of our budget stood out as being worth the extra money.

DespairingHomeowner · 12/05/2021 15:54

no, for the reasons you have given. They work for the sellers and on commission so in their interests to get you to spend the max you can afford (to the extent they may push you to look at other houses!)

DespairingHomeowner · 12/05/2021 16:05

no, for the reasons you have given. They work for the sellers and on commission so in their interests to get you to spend the max you can afford (to the extent they may push you to look at other houses!)

Original poster
13579db · 12/05/2021 16:33

Thanks
Enquiring about a house which I was told today has an asking price bid. We are due to view it tomorrow and when I asked how could we secure it he said oh say for example you offered £x - which was 50k above the asking price...

Made me a bit wary

He doesn't know our mortgage approval figure and I don't feel comfortable telling him!

Hate that it's such a game a d if you're confident and good at sales etc then you'll be able to outwit the agent almost or vice versus.

Definitely psychological in many ways

OP posts:
eurochick · 12/05/2021 16:39

Nope. In no business negotiation would I reveal my maximum to the other side. I wouldn't to an EA either.

Changingwiththetimes · 12/05/2021 16:49

Yes. Not the mortgage but the max amount I want to spend. It doesn't matter what the price is- I'll spend what I think k the house is worth.
Of course it's their job to get the best price. And they'll use whatever tactic. And they may even think you have more than you say. But you are in control of what you offer, snd if you think the house is worth X, then that's what you offer.

Original poster
13579db · 12/05/2021 16:57

He's also asked lots about our mortgage, do we actually have one, have we made the necessary steps regarding documents etc in a kind of a 'can you even afford this' tone ...to which I've replied well we wouldn't be making serious enquiries with you if we couldn't afford it

But again I felt even this was a tactic - a subtle one - to reveal what mortgage we had been given

Or maybe I'm overthinking everything as it's all becoming really overwhelming really!

OP posts:
Original poster
13579db · 12/05/2021 16:58

Thanks to the poster mentioning paying what the house is worth - how do you work out what a house is worth?

OP posts:
mobear · 12/05/2021 18:31

I normally look at recent sold prices in the street. Failing that, general sale prices in the area.

Original poster
13579db · 12/05/2021 18:55

Going by recent sold prices then it's worth what it's listed at so that's really helpful thanks

I guess we'll be able to suss it out and work out what to offer once we've viewed it

OP posts:
Original poster
13579db · 12/05/2021 18:57

Further to that - if we do want to make an offer, we want to at least sleep on it overnight then call the agent in the morning - advisable or do we have to rush the decision? DH very against rushing it, and says we'll tell agent that we'll call him in the morning regardless.

OP posts:
Ariela · 12/05/2021 18:58

Recent prices in the locality - and add a bit for plus points eg better location, whether anything needs doing to the property, taking off minus points eg bus stop right outside (rather than round the corner), cracked bathroom sink etc as minus amounts. Then add £750 so you're £250 more than the person bidding eg 325,500 expecting to get it above the person bidding £325.

InescapableDeath · 12/05/2021 19:00

We told an EA how much we wanted to spend but said we'd go over it for the right property - ie it was an 'ideal' budget not a definite one. But they were really funny about it (I think snobby about where we were living prior to selling) and never advertised any properties they had in the higher price range to us, even though I explicitly told them to.

mobear · 12/05/2021 20:01

I would try and decide what you’re willing to offer before you see it provided it’s what you expect it to be from the listing and then make the offer the same day. The market is moving very fast at the moment - although if you know it’s not as fast a market in your area you might have more time.

Original poster
13579db · 12/05/2021 20:57

Thanks Mobear, that's what I'd be inclined to do, I'll know instantly within a few minutes if it's the right decision because I've already done the visualising of what it would most likely be like living in that area in that house. So I'm 80% there already. Whereas DH is a 'thinker' and never makes rushed decisions. Which in this case could be our downfall so to speak. I'd rather get it going than wait overnight!

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readytosell · 12/05/2021 21:56

I've never understood the issue with doing so. You make an offer based on what you think it's worth, the seller decides whether to accept that or not. You back and forth until you agree on a price. The agent is just there in the middle trying to get the best price for their client, the seller, who ultimately makes the decision NOT the agent.

Just because you can pay x doesn't mean you have to! Or am I missing something...

mobear · 12/05/2021 22:10

@13579db I feel your pain! My partner and I saw four nearly identical houses in the same street over the course of a year before he agreed to get a move on with the last one!

Topbird29 · 12/05/2021 22:20

I think estate agents are currently asking more up front questions to confirm whether you have a mortgage in principle agreed and are proceed able as a buyer as due to covid they are only showing serious buyers. We have just exchanged, and that is what we found.

Alfxn · 12/05/2021 22:23

I never would. When we bid on our house, the market was quiet at the time, and they had no other bids on it at all - until the
very minute we put our offer in... and then magically another bidder appeared and started aggressively bidding against us.... of course, we had no way of telling if there really was another interested party or not.
Luckily the house was well within our budget to start with and the only thing we'd liked after months of looking so we were willing to keep raising our offer up to a certain point, but the end price was 30k more than asking before we "won", and we will never know if the EA completely fabricated those other bids!

CommanderBurnham · 12/05/2021 22:26

Just confuse him and say you have an agreement in principle but you will only pay what you think a house is worth thank you very much. .

DonGray · 12/05/2021 22:32

@13579db

Thanks to the poster mentioning paying what the house is worth - how do you work out what a house is worth?
I'm looking at price per sq ft (or sq m)
CommanderBurnham · 12/05/2021 22:50

It's worth what you or others are willing/able to pay. That's it.

We 'overpaid' for a house because we needed to be on the area for a certain date but totally worth it. Luckily house prices have risen but we were willing.

All the rest is a game you have to play.

greenlynx · 13/05/2021 08:34

I wouldn’t tell the actual figure but rather approximate one, you need to a figure as sellers want to be sure that the buyer is a serious one and can proceed quickly. We were showing mortgage in principal and prove of funds for a deposit when making an offer ( not always but in most cases).
I agree that you offer what you’re comfortable with and that depends on your personal circumstances. The house might be crap for me but a dream house for you so we will offer accordingly.
We’re both “thinkers” so for house hunting usually divided roles. One of us was excited type enthusiastically listening EA and the other was silent and serious. Then we were off home to discuss until tomorrow but one of us always “loved the house” . EAs like you to be emotionally attached. Whereas in reality you should be quite the opposite because you are taking on financial commitment.

Greenmarmalade · 13/05/2021 08:36

Tell them the bare minimum about everything. Don’t trust them at all.

Original poster
13579db · 13/05/2021 09:52

I don't trust them either
This guy seems ok, very knowledgeable, good talker as they all seem to be. When pressed on a max figure re mortgage I had to more or less repeat that we wouldn't be wasting his time or our time if we didn't have the approval for that amount.

I definitely got a gut feeling he was fishing to find out to what figure he could push us to if he had to.

Will see what happens anyhow.

Thanks for all the helpful replies

OP posts:
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