Eye spotted this letter in a local newspaper, the Southern Daily Echo, yesterday (we have removed only the name of the sender).
We know this is not exactly a new issue, but would nevertheless be interested in your feedback.
“Until recently I did not realise how extremely hard and frustrating it is to purchase a property in Southampton as a cash buyer.
“I blame estate agents for this, some of whom are a law unto themselves.
“My mother recently died and I have multiple sclerosis. Due to having to sell the family home I thought it would be easy to find a property for myself, but instead I have found little help from many of the estate agents in Southampton.
“As a cash buyer they are not interested, giving preference to those to whom they can sell a mortgage, and even suggesting that I should have a mortgage.
“In an era when we are told to avoid getting into debt I find it very irresponsible that they use these practices.
“I am at a loss to explain their attitude and mindset in this current environment, only that they want to make as much money as possible for themselves. I am shocked and horrified by these practices.”
Comments (10)
Even worse treatment for investment buyers…….. I have to advise my clients (in a well known university town) that if they want to secure any kind of assistance from sales agents, they have to imply that either they are just going to flip it (then agents are all over them like a rash) or that the property is for precious Jemima and her friends whilst they are studying, and that “we will probably be selling it again when she finishes so we can buy one for Hubert”
Many of our sellers that I have come into contact with in the last few years ,who are looking to buy, often tell me that they feel frustrated when they try and buy through certain chains of agents (we all know who they are!) if they are cash or have made their own mortgage arrangements. In short they favour buyers who are getting finance from them.
I found the same when I tried to buy a car last year. I offered cash and the main dealer said “it’s not in our interest to take cash now……we can make more from a buyer who takes out our finance”
Am I the only one who gets frustrated by cash buyers with stupid offers, followed by ‘But it’s cash!’. It may well be cash, but it’s 35%-below-the-asking-price-cash which is neither use nor ornament to my client.
In times of shortage of stock these stories always do the rounds however I think that in the 80’s there probably was a fair criticism of estate agents selling mortgages and more importantly expensive endowment mortgages. These days though I would say that actually a conversation with a companies mortgage advisor is an essential part of setting up a qualified sale, demonstrating a buyers ability to purchase, that you can recommend to your seller.
With regard to the point raised cash buyers are quite possibly stigmatised but thats not the estate agents fault, it down to the hoards of misundersatnding buyers who call up and say they are cash buyers, then when pushed, admit they are once they have had their mortgage approved.
But it is also down to motivation. A buyer who has sold, and is buying another property, is far more motivated than the majority of cash buyers who are perhaps not always so. If the chap that wrote this letter to his paper has a complaint I’m sorry to say its down to the lack of availability of property and down to the scores of tv property programmes that perhaps have given buyers sound bite terminology that they really don’t understand the meaning of.
Having worked in the corporate sector before opening my own independent agency, and now employing various staff who have come from larger chains I am aware of this problem. There is huge pressure on negotiators working in large companies to sell mortgage appointments, solicitor intros and whatever else their company is drawing commission from. The ‘best’ time to sell the add-ons is at the first point of contact so all buyers get grilled and pushed as a matter of habit. If the branch doesn’t hit its conversion rate targets it’s almost worse than not selling properties. Independent agents are almost always focussed purely on achieving a sale on a property without the distractions. Most businesses have the same things going on – ‘would you like fries with that?’ Optional extras are sold not bought.
Is it just me or does anyone else let out a great sigh (and not one of relief) when ‘cash buyers register? Many end up buying with a mortgage half way through a transaction and after all, we are here to represent the vendor’s best interests. That means getting to exchange with the best offer possible in an agreeable timescale for all. Every offer we receive must be approved by our financial advisor. It separates the wheat from the chaff, enables us to pass offers to the vendor confident the purchaser is able to buy and in many occasions, this is just ‘proof of funding’, If, as part of this, we can beat the deal the buyer currently has, great. But full qualification of offers significantly reduces fall throughs and the pain that serves up to all.
Do you guarantee that your FS will ONLY qualify/approve the buyer and NOT try to provide a compare-the-market style service?
As an agent myself, when a buyer says that he has the cash, then a simple Proof of Funds will simply do. If he requires a mortgage but says that it is all sorted, then a two-line email/letter from his broker would also be good.
The article at face value appears quite shocking, but having been in the business for many years, we are often told someone is a cash buyer when in fact they have a property to sell, but what they mean it will be cash when they get to exchange of contracts and they will be mortgage free. It is very difficult to judge without all the facts.
Load of tosh, more like the individual expects preferential treatment because they are a cash buyer.
End of the day agents want sales and exchanges. Yes there are companies out there that want you to use their mortgage provider but they are few and far between
Indeed… some firms are a mortgage company that sells property ! As an agent I experienced an offer being ignored by a corporate branch for not wanting to have an appointment with their advisor.