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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:
averythinline · 13/05/2021 10:47

They really do need to know what you can pay though ...especially in a fast moving area....round here you have to show offer confirmation documents before you can view otherwise you'll potentially wasting sellers time...
As people only want people that can actually buy viewing ifyswim....
Arranging a house for viewings is a complete pain for most people..

They don't know you or your circumstances so why do they take your word for it .?.. so many purchases fall through as people haven't got their funds in order...or are just starting the process and it takes longer....not saying you are doing that but lots of people don't say the whole truth..

Lockdowndramaqueen · 13/05/2021 11:33

I also think lots of sales are falling through because of mortgage valuations and or loan to value issues especially with so many properties going over asking at the moment. I imaging this might be why the estate agent is being more cautious than normal.

gurglebelly · 13/05/2021 12:41

We did but only in that we looked at houses within a range e.g budget was 400 so we looked 350-400. It just so happened that we liked a 350 house!

13579db · 13/05/2021 12:42

Definitely they seemed cautious and I supppse these are standard questions he needs to ask. Just that his tone was very patronising as though there ought to be a certain type of buyer buying this property. Bit judgemental really, but of course he has to cover all risks by asking.
DH happy to explain things better and give more details (without revealing our limit) to him later to reassure him. I think we'll both prob explain that frankly we're not revealing our limit because there's nothing stopping him upping the bids if he knows there's a huge buffer there to do so, so he'll have to accept that.

OP posts:
optimisticpessimist01 · 13/05/2021 19:44

We did but I don't know if we were just lucky with our estate agents we seemed to have landed on absolute diamonds. Never once felt pushed and the house we bought was £210k and our budget was £250k so it clearly didn't have an impact on our offer!

WombatChocolate · 14/05/2021 15:36

Some of their Qs are reasonable and to see if you’re going to be proceedable....like if you have a mortgage offer in principle, if you have a buyer in your property, how much equity you have etc. I would answer those Qs very enthusiastically and point out I had the paperwork all ready to bring in as soon as an offer is accepted. EAs want buyers who can complete and will get on with it and not flake out because they can’t get a mortgage or haven’t got a buyer or the cash. They gauge you are a buyer. Not all buyers are equal, so if you are a cash buyer, say so. If you are in a small chain or have loads of equity, say so. You do have to sell yourself as a buyer too. The EA might have to recommend a buyer from several and if you want a house it’s important you are recommended and people choose not just on level of offer but these other things too, I would take a slightly lower offer for a buyer who looked steady and serious and able to complete over a flighty looki; person who made a grand offer but clearly had no evidence they could be to exchange.

But on very top price I might be a bit cagey. I think I would name a range and actually I’d include a price behind which I was prepared to go....just to get the chance to see some of those properties , because an offer might be accepted.

Don’t limit what you get to see by saying a figure significantly below what you will pay. What’s the point if you never get tos we stuff you’d like. It’s fine to say a figure that’s higher, but don’t go too much higher or you’ll end up seeing stuff you can’t afford and that’s being a time waster and can lead to you pushing yourself behind what’s affordable.

Name a range and say what you’d offer all depends on the individual property, but you’d be prepared to pay for something that was worth it.

It’s when offering that you need to be more careful. Look enthusiastic about the property, remind them about your strong position to move and that all your paperwork is in order, then that you love the property but can see it’s only worth £X and you’d love to get it and live there, but do have others you’re looking at, which whilst not quite so promising, would be good alternatives if the price isn’t right in this one.

Of course, the heat of the market also spends on what you can say and offer. When things are very hot, you don’t have the luxury of starting very low and maybe getting lucky. You can lose out to someone else easily. So don’t offer really low but think carefully about what you will pay and if you really want it, offer it. And accept you might not get it. On one hand it’s not good to overstretch yourself and sometimes people do because they love a house and pay £50k more than they can afford. But in the other hand, it’s not worth being stubborn to get a ‘deal’ and losing out over £2k,just so you feel you ‘won’ against the seller or EA. You’d kick yourself later to lose a property you love over what is a tiny amount in the wider scheme.

You do need to be able to view properties, including those which might be affordable if hey take an offer. Don’t exclude yourself from seeing them by naming a price too low. Save your cagey poker face for the negotiating table.

WombatChocolate · 14/05/2021 15:42

And yes, EAs need to ask lots of Qs of buyers.

If you were the seller, you’d want them to do due diligence and only show your house to people who might be proceedable.

And yes, lots of EAs lack social skills and come across as pompous or judgemental or as if they are doing you a favour, especially in a hot market, where they start to feel like the gatekeepers to heaven. Sadly they are a necessary part of the process so ignore their prattish tone and just keep smiling and emphasising what a strong buying position you are in and all the paperwork you have ready to show them as soon as you have an offer accepted on the right property, plus the fact you have a solicitor ready and waiting too. Show an understanding of the process too....it reassures EAs and buyers too. The nightmares are the buyers so don’t understand mortgages or if they will get one and who haven’t really had an offer in principle, and who don’t understand about deposits or having access to it, or having their own buyer who is proceedable, or who don’t actually want to move. There are lots of time wasters out there and those who are just clueless and will never be able to proceed....so show you’re not one of those.

BlueCherryBlossom · 14/05/2021 16:59

There's a big difference between max budget and the max you'd consider paying for a particular house.

I'd share the former with an EA, but not the latter.

Starseeking · 14/05/2021 20:01

The EA I spoke to today asked what my budget was, as it was the first time I'd spoken to him, so I gave a range. For all he knows I could afford £100k more! I am actually going to see a property with him that is £80k over budget in a few days, as I think there is probably a deal to be done on something vastly overpriced, which has been on for almost 3 weeks (unheard of in this hot market).

Bluesheep8 · 15/05/2021 07:26

how do you work out what a house is worth?

Check sold prices for similar in the area.
But ultimately it's worth what someone is willing to pay for it. If that someone is you then it's what you're happy to pay.
It's always difficult because it's the biggest financial decision we ever make yet it's so governed by emotion.

Iamsodonewith2020 · 15/05/2021 10:23

Sleeping on it might not be an option. We viewed a house last weekend that had 12 viewings on the Saturday alone and by 5.30pm that evening it was SSTC on right move before my husband and I had even decided on what to offer!

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