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Kegsy

House Sale/Mortgage

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I'm in the process of selling a house, we got an offer and after a bit of back and forth, agreed a price.

3 days later the buyer comes back and says he can't get a mortgage for the amount, due to his earnings etc. he was nigh on 20 grand short.

Surely, he should have found out how much he could borrow, before even looking for a house, that's what I had to do. It's been yonks since I bought a house/had a mortgage, have things changed ?. All that has happened is just been a waste everybody's time, his, mine and the estate agents.

Edited by Kegsy

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Lenders are nowadays much more averse to lending to anyone for whom they can foresee some sort of risk - whether real or imaginary. All the credit check agencies make big bucks out of exploiting this nervousness. I also think that it can be tricky for self-employed folk to get a clear prediction of how much they are going to be able to borrow.

£20K out seems like the bloke may just be a pillock though. Lot of that about....

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2 minutes ago, Soulfinger said:

I also think that it can be tricky for self-employed folk to get a clear prediction of how much they are going to be able to borrow.

The problem is, this guy was making offers before he had a clue what he could borrow.

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Don't entertain letting anyone view before the estate agent can assure you that the viewer is in a position to proceed if they like your property (i.e. mortgage in principle) and /or they have a property to sell themselves or not etc. if a property to sell then where are they at with that side - under offer?, couple of viewings but no offer?, not on the market ye?. Its the estate agents job to inform you exactly who they want to send round for a viewing. Too many time wasters, sightseers, nothing to do at a weekenders etc. 

 

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2 hours ago, Kegsy said:

I'm in the process of selling a house, we got an offer and after a bit of back and forth, agreed a price.

3 days later the buyer comes back and says he can't get a mortgage for the amount, due to his earnings etc. he was nigh on 20 grand short.

Surely, he should have found out how much he could borrow, before even looking for a house, that's what I had to do. It's been yonks since I bought a house/had a mortgage, have things changed ?. All that has happened is just been a waste everybody's time, his, mine and the estate agents.

Must have heard you playing the Connie Laverne track and took this to be an offer...

 

Edited by Soulfusion

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33 minutes ago, Raym said:

Don't entertain letting anyone view before the estate agent can assure you that the viewer is in a position to proceed if they like your property (i.e. mortgage in principle)

I would have thought this was just common sense on the part of the agent, they are doing the viewings so it's their time not mine.

Edited by Kegsy

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Kegsy - leave you're house on the market until you sign completion docs - that way you're being fair first come first served - the first time someone is really serious about buying it is when they pay for the surveyors fee - good luck 

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Could have been a way of trying to get the price lower , also it would depend on the asking price , if that was £100,000 , then  he is 20% short ,however if the  asking price is say £500,000, then hes only 4% short and this could be seen as a reasonable discount for a property of that value  and he may have thought you would consider taking the hit in order to keep the sale on track. 

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4 minutes ago, carty said:

however if the  asking price is say £500,000,

We're talking a 3 bed semi in Bradford mate, much nearer 100k than 500k.

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Common sense would dictate that you find out how much you can borrow first, then you know your price range.  My eldest lad bought a house two years ago, and he made sure he could borrow the money and afford the repayments before he put an offer in.

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5 minutes ago, Steve S 60 said:

Common sense would dictate that you find out how much you can borrow first, then you know your price range.  My eldest lad bought a house two years ago, and he made sure he could borrow the money and afford the repayments before he put an offer in.

In my experience common sense is rarely followed. 

I have a general hatred for estate agents the lying and occasional thieving c nuts as they are at the centre of most problems with the sales process. It’s amazing how many of them can’t count properly. 

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 Its a very tricky buisness. I  endured about eight months of  bieng messed around  several years ago .    The prospective  buyer is only ever that until the contracts are exchanged and theres no real way of not having to go through the Limbo of not bieng 100% sure of the deal up until that point . Even worse , if the prospective buyer is in a chain , your sale can depend on several people, any of which can lose their job , change their mind etc especially in this insecure workplace environment .                                                                                                                                                                 Not trying to be too negative  about this , i,m sure for the most part these transactions run fairly smoothly , good luck with it .    I think its different in  Scotland where i,m not sure whether  its a verbal or written agreement seals the deal .                                                                           I agree strongly with the above post that  once people start to instruct surveyors and solicitors , that this is a  declaration that  they are serious and prepared to spend several hundred pounds at least in pursuit of the property , even so , its not cut and dry until  the contracts are exchanged. 

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1 hour ago, JNixon said:

In my experience common sense is rarely followed. 

I have a general hatred for estate agents the lying and occasional thieving c nuts as they are at the centre of most problems with the sales process. It’s amazing how many of them can’t count properly. 

I've been involved in three property purchases in the last five years, and it's been the solicitors doing the conveyancing that seem to hold everything up.  It should be a simple process in this day and age as all searches can be completed by accessing the various databases held.  However, anything out of the ordinary and everything seems to grind to a halt.  I've had to make some very strong phone calls to solicitors, telling them to get their finger out and actually earn their exorbitant fees, as conveyancing really is money for old rope.  I got one seller to actually drop her price as her solicitor couldn't get an answer to a simple enough question I had about a possible liability concerning outstanding management fees for communal areas from another property owner who had declared himself bankrupt.  It only came to light a couple of weeks from the completion date that the management company were looking to recover their losses from the remaining property owners.  I was that p*ssed off with the inability of the sellers solicitor to find out if I would "inherit" this additional charge once I became the new owner that I said if the seller dropped the price by £500 I would deal with the management company if and when they tried to recover their shortfall, just to complete on time.  Solicitors, quite happy to take your money but not so happy to take any responsibility.

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5 hours ago, Raym said:

Don't entertain letting anyone view before the estate agent can assure you that the viewer is in a position to proceed if they like your property (i.e. mortgage in principle) and /or they have a property to sell themselves or not etc. if a property to sell then where are they at with that side - under offer?, couple of viewings but no offer?, not on the market ye?. Its the estate agents job to inform you exactly who they want to send round for a viewing. Too many time wasters, sightseers, nothing to do at a weekenders etc. 

 

Spot on , I sold mine in January this year, and told the estate agents to properly qualify the buyers, needless to say they sent a bloke round who hadn't even put his on the market, after a bollicking they complied.

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2 hours ago, Steve S 60 said:

I've been involved in three property purchases in the last five years, and it's been the solicitors doing the conveyancing that seem to hold everything up.  It should be a simple process in this day and age as all searches can be completed by accessing the various databases held.  However, anything out of the ordinary and everything seems to grind to a halt.  I've had to make some very strong phone calls to solicitors, telling them to get their finger out and actually earn their exorbitant fees, as conveyancing really is money for old rope.  I got one seller to actually drop her price as her solicitor couldn't get an answer to a simple enough question I had about a possible liability concerning outstanding management fees for communal areas from another property owner who had declared himself bankrupt.  It only came to light a couple of weeks from the completion date that the management company were looking to recover their losses from the remaining property owners.  I was that p*ssed off with the inability of the sellers solicitor to find out if I would "inherit" this additional charge once I became the new owner that I said if the seller dropped the price by £500 I would deal with the management company if and when they tried to recover their shortfall, just to complete on time.  Solicitors, quite happy to take your money but not so happy to take any responsibility.

The first house I bought I did the conveyancing myself, I was surprised how easy it was, there was no internet or anything like that just the good old yellow pages, got in touch with a legal stationers they sent me all the forms I needed ,filled them in and that was it, cost me £116 total as opposed to £500+ from the local solicitors, they like to make out it's complicated but it isn't.

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35 minutes ago, sammy seaman said:

What's 20grand to you ! With your record collection just gathering dust in the loft get them sold and let the bloke have the house lol

You can buy the house, the loft and all it contains if you want.

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2 minutes ago, Kegsy said:

You can buy the house, the loft and all it contains if you want.

Not in Bradford don't know anybody that lives there that likes it ! Are you moving to selby ?

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Out of curiosity who is the agent that he made the offer through? Are they genuinely reputable? Some agents will do anything to try to keep your property on their books even in order to maintain a certain level of stock. One big agent in my town has a history of sending staff from another branch to view properties on their book and make bollocks offers always claiming that they're not in a position to go ahead at present anyhow until they have sold their own property, which doesn't exist. Not making that up, have a very good friend who was a partner at an independent agent in next town for approx 30 years who tipped me off about it. In your case Kegsy there may never have been a genuine buyer.

Edited by Martin S

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2 minutes ago, Martin S said:

Out of curiosity who is the agent that he made the offer through? Are they genuinely reputable? Some agents will do anything to try to keep your property on their books even in order to maintain a certain level of stock. One big agent in my town has a history of sending staff from another branch to view properties on their book and make bollocks offers always claiming that they're not in a position to go ahead at present anyhow until they have sold their own property, which doesn't exist. Not making that up, have a very good friend who was a partner at an independent agent in next town for approx 30 years who tipped me off about it. In your case Kegsy there may never have been a genuine buyer.

Agent is quite a large concern in these parts, has been going for 40 odd years. Reputable, who knows, we are talking estate agents here !. They are doing the viewings so if they are sending their own people round they're wasting their own time.

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Let's hope not, but if they are sending their own round, or just paying someone to visit properties, they are not wasting time because as long as most sellers perceive the agent to be creating activity, they will hang in there with them. Have you signed a contract with them in terms of how long they are able to market it? If you have and you want shot of them you would have good grounds for terminating the contract without any costs on the basis they have sent a client to view who was unable to afford the property. Thus unprofessional conduct. Wouldn't matter if they were advertising your property or Buckingham Palace, they have a duty of care to provide to you. Were you present for the viewing yourself?

Edited by Martin S

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Kegsy - be careful of the house beaters - let's say you're house is valued at 250k - people view the house but want it cheaper - they send there friends round who after viewing the house offer you say 210k - far to low so you reject - the next couple more friends from the people who want to buy it and they offer 215k - now you have doubts that the estate agent has priced it too high - then the people who want it offer 220k but are willing to go to 225k or walk away  - you accept 225k and they get the house for 25k under market price - buying and selling effing nightmare - good luck 

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6 minutes ago, ZoomSoulBlue said:

Kegsy - be careful of the house beaters - let's say you're house is valued at 250k - people view the house but want it cheaper - they send there friends round who after viewing the house offer you say 210k - far to low so you reject - the next couple more friends from the people who want to buy it and they offer 215k - now you have doubts that the estate agent has priced it too high - then the people who want it offer 220k but are willing to go to 225k or walk away  - you accept 225k and they get the house for 25k under market price - buying and selling effing nightmare - good luck 

Been warned about these characters already, but thanks.

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Some agents love little more than overpricing a property just to fool a punter into believing they will achieve the best price, when the truth will often be the only motivation for them advising of such is to get another property on their books and prevent other agents getting the business. However, the seller has access to all the data they need to estimate what the price should possibly be, Rightmove and Zoopla completed sales. But bear in mind, the one thing you never see declared on those sites, is disclaimers as to whether the house has been smoked in or not. A house undersold may well have done, no better example than 3 doors from me, must have seen over 40 different potential buyers come and go, the place stunk, the eventual buyer gutted it even the floorboards upstairs, and yet they too are smokers. 

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20 hours ago, ZoomSoulBlue said:

Kegsy - be careful of the house beaters - let's say you're house is valued at 250k - people view the house but want it cheaper - they send there friends round who after viewing the house offer you say 210k - far to low so you reject - the next couple more friends from the people who want to buy it and they offer 215k - now you have doubts that the estate agent has priced it too high - then the people who want it offer 220k but are willing to go to 225k or walk away  - you accept 225k and they get the house for 25k under market price - buying and selling effing nightmare - good luck 

Regardless of all of that if 225k is the largest offer then the house is worth 225k in that snapshot. 

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