I've never bought a property before. So I am wondering if anyone can help me out here in terms of how things work when dealing with an estate agent.
When you make an offer on a property to an estate agent, do you have to prove to them that you have the funds? I am wondering about the "approval in principle" letter you get from the bank.
If I have to show an estate agent this letter on making my offer, which is say 350k and my approval in principle from the bank is 400k then I'm just leaving myself wide open for the estate agent to push me for more, for a "phantom bidder" to emerge etc.
In summary, my question is do I have to ever show the estate agent my "approval in principle" letter and if so when do I have to show it, how late in the process can I hold off to showing it?
Have been through the process, we scanned the approval letter but blacked out any confidential details, figures etc before sending over to the EA. No issue with that from EA...
I just got my solicitor to write a short letter stating I had sufficient funds based on the sanction he had reviewed to complete the purchase and all were happy with that.
I just got my solicitor to write a short letter stating I had sufficient funds based on the sanction he had reviewed to complete the purchase and all were happy with that.
All I should of clarified that it was a receiver sale where the agent requested this and we pulled out in the end (but the letter was acceptable to the agent I should add).
But the redacted bit could say that you're approved for €120k and you could be bidding on a €1m house?!
Providing a redacted document shouldn't carry any weight.
I have not previously heard of a regular vendor (aside from a bank or receiver) looking for proof of funds from a prospective purchaser.
This is a new and unwelcome development. It would be much better if the prospective purchaser were to tell the EA where to go rather than trying to accommodate this unorthodox request.
Tell the EA that you are a serious bidder and not interested in wasting his time or your own, but that you have no intention of revealing sensitive information.
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