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Original poster

which offer to accept?

30 replies

Christmasbutmakeitspooky · 07/12/2021 17:29

We have 2 offers on our house. One asking price, one 5K below asking price. Both first time buyers so no chain.
Below asking price guy (BAPG) has a mortgage agreed and has been using our Estate Agents mortgage advisor so they are involved in the whole process and can oversee everything. Asking price guy (APG) has gone elsewhere for his mortgage, it's been agreed but EA keep trying to put me off his offer saying it's unreliable and that BAPG is the best option. I'm trying to understand what the issue is with APG's mortgage but they can't give me many details because of privacy. It's making it really hard to make a decision.
We haven't found a house of our own. On one hand, it could be months, in which case we can reject BAPG and hope that we get more offers. On the other hand, a house could be listed tomorrow that we love in which case having a buyer secured would put us in the best position. So I really don't know what to do. 5K may not seem like a lot to some people but it would make a difference for us.

OP posts:
OnlyFoolsnMothers · 07/12/2021 17:31

Take the asking - estate agents have their own agenda

Original poster
Christmasbutmakeitspooky · 07/12/2021 17:34

This is our first experience selling a house so I'm pretty clueless. What could possibly be the issue with APG's mortgage? That's what is making the decision difficult, I don't get what the problem is if it's been agreed. Are there dodgy mortgage brokers out there? I have asked EA what the situation is several times but they 'can't tell me too much'.

OP posts:
Terminallysleepdeprived · 07/12/2021 17:35

The estate agent earns a kick back from their in-house mortgage people. Therefore they have a vested interest in that offer being accepted.

Take the asking price offer

Twiglets1 · 07/12/2021 17:37

Yes I would also accept the asking price, it is a lot of money

catchyjem · 07/12/2021 17:40

Accept the asking price!

Orangecrisp · 07/12/2021 17:41

Did you meet both buyers? Estate agents will probably make more commission from someone using their services such as mortgage broker, than they would as a % commission on an extra £5k on the sale price.

Eg 2% of £5k is £100. My mortgage advisor earned £800 from the lender for our mortgage.

If you met buyers I would go with my gut and if nothing seemed off would go with asking price.

Idontgiveagriffindamn · 07/12/2021 17:42

Take asking price offer. Mortgage brokers get a paid a fee by the mortgage company so I’m this case estate agent has an incentive for you to go with the lower offer

gruffalocake2 · 07/12/2021 17:46

As others said I’d take asking price.
In fact I’d bet a buyer who has done their own research and got their own mortgage and not succumbed to the machinations of the estate agent is probably a better bet. All the advice websites say not to go with the estate agent mortgage broker so I’d presume asking price offer person has read up on buying a house and the under asking price person has not.

Didiusfalco · 07/12/2021 17:47

Your estate agent is being a cheeky fucker. They want the commission from the mortgage of the guy with the lower offer. Don’t listen to them, take the extra £5k

BrilliantBetty · 07/12/2021 17:51

I would go with the asking price offer.

If this potential buyer definitely has a mortgage agreement in place.

But, in my experience first time buyers are a blooming nightmare. Until they have instructed solicitors and completed necessary surveys I wouldn't get too excited.

Original poster
Christmasbutmakeitspooky · 07/12/2021 17:52

Thanks everyone, I did think that might be the reason!
I met BAPG but APG had his appointment on a day I was at work. They are both first time buyers so I assume youngish (just an assumption).

OP posts:
tootyfruitypickle · 07/12/2021 17:54

Don't trust the agent!

cherrywhite · 07/12/2021 18:16

It would also be helpful for you to understand the LTV amount on the mortgage. One might have a bigger deposit than the other, therefore less risk of them not going through with it if there is a down-valuation.

Also, who's prepared to wait for you to find?

Lockdowninfinity · 07/12/2021 18:18

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LemonSwan · 07/12/2021 18:22

Wow thats a really shitty EA you have there.

They are certainly not working in your best interests.

If both the offers were the same I would take the external mortgage over the in house anyway. Because in house mortgage rates are usually awful in comparison and it shows a serious naivety of buyers to be using their services.

That would suggest to me the in house buyers do not have experience, have done no research or have anyone to advise them wisely on how to buy a house. That is more likely to cause problems later down the line.

APG all the way!

Original poster
Christmasbutmakeitspooky · 07/12/2021 18:28

Apparantly they are both happy to be patient and wait for us to find somewhere.

OP posts:
Findingthelight1 · 07/12/2021 18:32

APG all the way, obviously. For all the reasons outlined above.

You don't want to lose £5k and nor do you want a naive buyer who is insufficiently clued up about the process to do their own research.

Not a criticism per se - we went with an EA package many moons ago, when we didn't know any better - but there's a reason people do it once and never again..

Original poster
Christmasbutmakeitspooky · 07/12/2021 18:40

Thanks everyone this has really helped!

OP posts:
JingleJangler · 07/12/2021 18:45

They want you to take the lower offer because they have a side earner on the mortgage. I would not trust an estate agent to tell me the sun is hot.

PlumManor · 07/12/2021 19:20

I agree with a PP, what is the LTV for each of the offers? I don’t see how the estate agent can refuse to disclose that information. That will give you an idea as to whom is in a better position with their lender and likely to get a formal offer.

I also wouldn’t trust the agent to be doing right by you. If after getting as much information as you can from the agent, and the BAPG seems the better buyer, then ask the agent to ask them if they will offer match.

DD was asked the same when she went to full and final, the seller preferred her as a buyer and her position but it wasn’t the highest offer. She agreed to match the other offer and is now sat in that house looking forward to her first Christmas.

Original poster
Christmasbutmakeitspooky · 07/12/2021 19:40

BAPG can’t go any higher, his current offer is his max. They asked him again today for me.
I have no idea about the LTV, I didn’t realise it was something I could ask about.

OP posts:
OnlyFoolsnMothers · 07/12/2021 19:51

Unless I’ve already got a next purchase and in a chain I wouldn’t worry about LTV, just accept and let the solicitor and estate agents quantify the offer

A580Hojas · 07/12/2021 20:00

@Didiusfalco

Your estate agent is being a cheeky fucker. They want the commission from the mortgage of the guy with the lower offer. Don’t listen to them, take the extra £5k
This.
Sxxyfing · 07/12/2021 20:03

I work in property.
Ask your estate agent if they're mortgage broker can "financially qualify" the asking price buyer. This just means a conversation to confirm they'd be able to get them a mortgage and / or they view his agreement in principle and confirm they'd be happy with it. Then you can accept this offer and your buyer can arrange his mortgage how he wishes

Sxxyfing · 07/12/2021 20:04

Also the agents will likely get around £100 for a mortgage referral so really not in their interest to push it that hard.
More likely they know the lower buyer from previous offers and have seen his paperwork etc so feel they can say he's a safer bet