FTB - dealing with EA

[Rubyruby2222]

Im looking to buy my first house and plan to approach local estate agents to get on their books.

I’ve read other threads about how FTB’s can be entitled brats so I really want to avoid that! However, I haven’t got a clue what I’m doing!

I’ve read on other forums that you should try not to give too much away to EAs about the full extent of your finances. Do people ask to view properties slightly out of their budget with a view to giving a lower offer? Or do you tell them your max up front?

TIA

I told them my budget - otherwise how do they know what houses to tell you about before they come onto the market .
worked for me anyway !

Tell them your maximum budget. They will still send you details of houses outside your budget. But also look yourself on Rightmove.

Thank you. That makes sense. I was confused by the “don’t tell the EA anything. But possibly taking that too literally!

In today’s market where in most areas there is much less competition with other buyers, estate agents will just be happy to have you on their books. Just tell them your maximum budget. At the point of offer they will need to know you have a mortgage in principle and proof of deposit and also any notice restrictions if you are renting. I registered with all the agents (must have been about 20) when I was buying earlier this year. All the properties they sent me details of were on Rightmove so there wasn’t really any advantage in registering. Now I’ve bought and getting settled in and still getting calls and emails despite trying to unsubscribe!

Also do not believe a word they say, they don't work for you or in your interests. Treat them as you would a used car salesman.

Great thanks.

You can be honest with the EA's OP just don't forget that they are working for the sellers, not for you.

FTBs have a reputation for being a bit high maintenance but that's to be expected as it's the first time they've done this and it's natural to be nervous, and have lots of questions, after all it's a huge amount of money!

One thing EA's (and vendors) like is if you have a mortgage agreement in principle. This will show the EA that you are serious, organised and you have the funds.

FTBs also have a reputation for having a bit of a freak when they get the survey done on the house/flat they want to buy. I know I did! I looked through it and it seemed to suggest that the house I was buying was a heap about to fall into the ground! It wasn't of course and once I'd calmed down and read it through a few times I realised that much of the content was stuff like "window sills could do with a fresh lick of paint" rather than "all the windows need replacing" which was how I'd read it initially

FTBs have a really strong buying position. Don't be scared to ask questions. There's no such thing as a stupid question! If you have a friend or parent who has bought a property before talk to them, and don't forget that the wise MNers will always help too Good luck!

I never commit to an amount. When they ask how much to know what to send me, I say, 'for the right house, considerably more.'

They will always send you homes above your budget anyway.

They have never sent me anything that is not on RM too, by the time I get their emails. As pp says, I have had to go as far as to block phone numbers before.

They do occasionally try to offload homes where sales have fallen through, but none of them were any good.

Be mindful of opening yourself up to being spammed to kingdom come.

I'd give them a range from between £150K under to £50K over your maximum comfortable budget based on a 25 Year mortgage (never go beyond that).

So, if your maximum comfortable budget (mortgage plus deposit) is £300K then ask for homes in the range £150K to £350K. And like Kiev says, let them know you'll pay what it's worth to you.

Thanks all. Will set up a separate email account.

Disappointing to hear they don’t have anything beyond Right Move. There isn’t a huge amount on there, was hoping they might have some more. Is the whole “it’s sold before it even gets to Rightmove” just EA smoke and mirrors?.

Occasionally, they’ll phone you or send you something a couple of hours pre it going live on Rightmove so you can get ahead.

We've just bought, and in my experience, the EA just put everything on right move and their website - you need to keep an eye yourself, don't rely on them to notify you. They'll ask your budget so you need to be fairly honest, but they will send you more expensive properties, and our EA kept contacting me about houses 'on the edge' of the town we were looking in, but they were actually in villages at least 5-10 mins drive away, so do be specific about location. They may ask to see your mortgage agreement in principle, but we didn't get asked for this until we made an offer where we had to send them ID, AIP and proof of deposit.

Oh and ignore this comment "25 Year mortgage (never go beyond that)." - it's very common to have longer term mortgages now, especially if you're younger. Better to have lower monthly payments you can afford, and overpay if you can.

In desirable areas when the market is crazy it is definitely true. We were laser focused on one particular area for quite some time, only around 50% of houses sold there have old RM listings archived with pictures, the other had simply never reached the site (not just Covid, going back 15 years). EAs could take their pick of buyers, sell to mates, etc.

That’s not happening in the area now. A lot is hitting RM.

That said, they all seem to be problem houses. Awful standard of refurb, parking is pot luck, vastly overpriced etc. So maybe the best houses are still being sold via phone call.

I would say it’s far less likely to be the case now.

I have considered emailing a few dozen agents in case sales fall through/they can coax folks to go back to market, but frankly I need a home far less than I need them wasting a bunch of my time with unrealistic home sellers who think they have the upper hand, because EA got a ‘begging’ email.

I absolutely loathe the rental I am in at the moment (they killed my cat last week, run over by a combine harvester), my anxiety is constantly at peak level, but, for us FTBs, this is very much a waiting game.

I have put up with it for a year. I can wait one more for the right house at the right price.

Urgh, I hate how cynical and negative years of renting has made me. Apologies all.

It is common, yes, but it's not good practice. If you stick to 25 years, and base your budget on that, then you are far less likely to over-stretch yourself. In addition, it is proven that as interest rates increase the benefit of longer terms reduces.