Can you sue the Mortgage Surveyour???
Discussion
Hi is there anyone who can shed some light on this. I have nearly sold my house we accepted there offer etc mortgage surveyour came round said there was no problem blah blah blah......
week later house valued 20% lower than the market value, i am being forced to sell to use the money on finishing off the renovations on our new house. we brought the house for investment purposes only and was rented out after we kitted it out(new kitchen redecorated through out.) We brought it really cheap but there are houses going on the market more than 10k above our askin price and they are clearly not worth that money.
So the question is can you sue the mortgage surveyour (from 60 miles away) to recover the lost money. We did have our own indipendent survey from a local Chartered surveyour.
Cheers
Steve
PS i am getting siclk of waitiong for the sale and want the house gone we dont live there and is empty from the end of the month (tenants contract expires)
week later house valued 20% lower than the market value, i am being forced to sell to use the money on finishing off the renovations on our new house. we brought the house for investment purposes only and was rented out after we kitted it out(new kitchen redecorated through out.) We brought it really cheap but there are houses going on the market more than 10k above our askin price and they are clearly not worth that money.
So the question is can you sue the mortgage surveyour (from 60 miles away) to recover the lost money. We did have our own indipendent survey from a local Chartered surveyour.
Cheers
Steve
PS i am getting siclk of waitiong for the sale and want the house gone we dont live there and is empty from the end of the month (tenants contract expires)
Was the mortgage surveyor acting for the purchasers of your house? In which case there is little scope for suing him. If he thinks that "for mortgage purposes" the house is worth 20% less than what you consider to be the market value, then I think there is little you can do.
Remember, the reality is that you are under no legal obligation to sell to someone at this price, therefore should you choose to do so that is entirely your lookout.
Only suggestion is to keep marketing it until you get the price you want, assuming it has not been overvalued in the first place.
Remember, the reality is that you are under no legal obligation to sell to someone at this price, therefore should you choose to do so that is entirely your lookout.
Only suggestion is to keep marketing it until you get the price you want, assuming it has not been overvalued in the first place.
Steve
I'm confused on this! Are you saying that you had agreed a sale and that the buyers surveyor, preparing a report to the mortager of the buyer, said that the price was over market value? And if correct then presumably this is causing your buyers some problems securing their mortgage?
I could see why you would be narked with this surveyor, but not convinced that it should cause you, the vendor, a problem.
The purpose of the valuation report is not to agree that the asking price is right, it is to give the lender some comfort about the value of the house as security for the loan they are making.
To give an example: Agreed sales price is £250k. Buyers want a mortgage of £150k. Surveyor says house is worth £220k. Mortgage company still happy to lend £150k.
If your buyers were after a 95% mortgage then I could see that this would cause you a problem. The revision to the example is: Agreed sales price £250k, buyer wants mortgage of £237k. Valuation £220k. Mortgage company say no way.
If I am right about your circumstances then the issue you have is that your buyers cannot really afford your house.
In my experience surveyor's will always err on the side of caution - particularly in todays property market with high profile uncertainty about whether prices have peaked and may fall. At best they will say that the purchase price is a 'full' price. No way they will ever say it is low versus the market - no point - if they did they would expose themselves to more risk than they needed.
In any case, you have no contractual relationship with the buyer's surveyor, he owes you no duty of care and thus you could not sue him.
If as I suspect, your buyers have come back and said we want the price lowered, you need to make the choice to accept it or tell them to bugger off and sell to someone else.
Good luck!
I'm confused on this! Are you saying that you had agreed a sale and that the buyers surveyor, preparing a report to the mortager of the buyer, said that the price was over market value? And if correct then presumably this is causing your buyers some problems securing their mortgage?
I could see why you would be narked with this surveyor, but not convinced that it should cause you, the vendor, a problem.
The purpose of the valuation report is not to agree that the asking price is right, it is to give the lender some comfort about the value of the house as security for the loan they are making.
To give an example: Agreed sales price is £250k. Buyers want a mortgage of £150k. Surveyor says house is worth £220k. Mortgage company still happy to lend £150k.
If your buyers were after a 95% mortgage then I could see that this would cause you a problem. The revision to the example is: Agreed sales price £250k, buyer wants mortgage of £237k. Valuation £220k. Mortgage company say no way.
If I am right about your circumstances then the issue you have is that your buyers cannot really afford your house.
In my experience surveyor's will always err on the side of caution - particularly in todays property market with high profile uncertainty about whether prices have peaked and may fall. At best they will say that the purchase price is a 'full' price. No way they will ever say it is low versus the market - no point - if they did they would expose themselves to more risk than they needed.
In any case, you have no contractual relationship with the buyer's surveyor, he owes you no duty of care and thus you could not sue him.
If as I suspect, your buyers have come back and said we want the price lowered, you need to make the choice to accept it or tell them to bugger off and sell to someone else.
Good luck!
We were on the other end of this exactly a year ago - house we offered on was £165k, accepted, all ok. Then the slimey, rotten useless thieving surveyor valued it at £145k (after the typical 10 minute amble round the house) which even we thought was daft. Mortgage lender reduced their loan amount and we were short by a few grand, vendor wouldn't budge so it all fell apart - lost the valuation fee etc. So unless you are completely desparate find another buyer - it's a bit of a lottery - I think the surveyor we had was having a bad hair day or something.
Oh yeah - don't even bother thinking about suing the surveyor.
>> Edited by sadoksevoli on Thursday 23 January 11:48
Oh yeah - don't even bother thinking about suing the surveyor.
>> Edited by sadoksevoli on Thursday 23 January 11:48
a bit confusing and may not have all the facts but..
sorry but nearly selling your house is nothing. Untill the contracts are exchanged and then completion - nearly is nothing.
Ofter buyers will start negotiations at £x , sellers accept an offer and then 2 weeks later the buyers reduce the offer if they feel they are in a stronger position or circumstances change. (equally the sellers do it as well - gazumping)
The surveyor or his findigs/recommendations has nothing to do with the price you are asking. You may be asking a cheap price for a quick sale, or pushing the max before the bubble bursts, house floods, new road, whatever.
If I read your post right, you still have the option to proceed with the new (lower)offer or not and look for new buyers.
Only when contracts are exhcanged agreeing to a price things go from a nearly to quite certain and certain on completion and cash in bank.
I have often played hard ball with houses we have bought, being in the business helps because how we know how the system works, sellers desperate, move quickly. etc...
Dont tell anyone your desperate to sell or need the money for a new house, it weakens your position badly.
good luck.
sorry but nearly selling your house is nothing. Untill the contracts are exchanged and then completion - nearly is nothing.
Ofter buyers will start negotiations at £x , sellers accept an offer and then 2 weeks later the buyers reduce the offer if they feel they are in a stronger position or circumstances change. (equally the sellers do it as well - gazumping)
The surveyor or his findigs/recommendations has nothing to do with the price you are asking. You may be asking a cheap price for a quick sale, or pushing the max before the bubble bursts, house floods, new road, whatever.
If I read your post right, you still have the option to proceed with the new (lower)offer or not and look for new buyers.
Only when contracts are exhcanged agreeing to a price things go from a nearly to quite certain and certain on completion and cash in bank.
I have often played hard ball with houses we have bought, being in the business helps because how we know how the system works, sellers desperate, move quickly. etc...
Dont tell anyone your desperate to sell or need the money for a new house, it weakens your position badly.
good luck.
Buying some flats last year. I signed up for them off plan 1 year later they are ready and we arrange finance.
Valuers go round and value them at 50% of what we expected their market value to be. We challenge the valuation and the surveyors tell us that there was something strange going on at the site WTF? We then formally challenge them via solicitor and they withdraw the valuation. How we laughed, not.
Valuers go round and value them at 50% of what we expected their market value to be. We challenge the valuation and the surveyors tell us that there was something strange going on at the site WTF? We then formally challenge them via solicitor and they withdraw the valuation. How we laughed, not.
we have not said we need the money or are desperate to sell, but want the house gone.
the purchaser has offered a extra money whcich takes us down to 12% below the askin which we have tentatively accepted for now, but is still on the market if another buyer wants to put an offer in.
The situation is that we are renovating a house to include new everything, bedrooms bathrooms kitchen conseratory etc. we are in the furtunate position not to need a mortgage and are using the money from the sale of the 2 of our properties to fund the purchase and renovation.
we brought the house when there was a big slump in the area for far less than we are selling it for but want to maximise the profits cause we have our second baby on the way. it may sound greedy but business is business.
Cheers for the advice
Steve
the purchaser has offered a extra money whcich takes us down to 12% below the askin which we have tentatively accepted for now, but is still on the market if another buyer wants to put an offer in.
The situation is that we are renovating a house to include new everything, bedrooms bathrooms kitchen conseratory etc. we are in the furtunate position not to need a mortgage and are using the money from the sale of the 2 of our properties to fund the purchase and renovation.
we brought the house when there was a big slump in the area for far less than we are selling it for but want to maximise the profits cause we have our second baby on the way. it may sound greedy but business is business.
Cheers for the advice
Steve
I have a friend who has just bought an old house "in need of renovation" as a project. He had the full structural survey done and it got a good report apart from a note there there was some rising damp.
Damp people come out and basically tell him that he hasn't got rising damp, but instead a small lake / swimming pool under his floorboards which needs to be pumped out and the point of ingress identified so that it can be blocked.
He's also considering suing his surveyor. Doesn't want much - just an apology and a refund of the fee, yet even with such an outright display of incompetence on the part of the surveyor, success isn't guaranteed.
Now if I understand you right, your issue with your surveyor is basically a difference of opinion over property value? I fear that you may be on a sticky wicket (as the saying goes) on that one.
Damp people come out and basically tell him that he hasn't got rising damp, but instead a small lake / swimming pool under his floorboards which needs to be pumped out and the point of ingress identified so that it can be blocked.
He's also considering suing his surveyor. Doesn't want much - just an apology and a refund of the fee, yet even with such an outright display of incompetence on the part of the surveyor, success isn't guaranteed.
Now if I understand you right, your issue with your surveyor is basically a difference of opinion over property value? I fear that you may be on a sticky wicket (as the saying goes) on that one.
I don't think there's any comeback on surveyors anyway. I know of a few people who have had surveys come up clean only to need structural repairs a few years later. The surveyor in each case was untouchable. I don't know full details but they seem to be onto a good thing it that they can go round and tell you the house is fine and not be accountable if they are wrong.
However, in this case and as has already been said, the surveyor is in the employ of the buyers so you have no comeback at all. This survey is for the purposes of the loan to them so it must mean they are in need of a high percentage mortgage.
The ball is in your court. Either accept their low offer because they can't afford the full price. Or decline their revised offer and go back to marketing it at the original price. At the end of the day you have to decide how much you are willing to sell the house for. This will depend on how much money you need and how quickly.
However, in this case and as has already been said, the surveyor is in the employ of the buyers so you have no comeback at all. This survey is for the purposes of the loan to them so it must mean they are in need of a high percentage mortgage.
The ball is in your court. Either accept their low offer because they can't afford the full price. Or decline their revised offer and go back to marketing it at the original price. At the end of the day you have to decide how much you are willing to sell the house for. This will depend on how much money you need and how quickly.
Have you seen a copy of the valuation? I used to work for a firm of national Housebuilders and used to experience 'down valuations' on a regualar basis especially on part exchange properties.
The valuation often excludes the cost of any works that may be required ie extra loft insulation, damp or wood worm treatment, rewiring etc. Which is usually unfair as the property could be priced to take these things into account.
On one occasion we did have one chappie who said the property had been downvalued by £20k and demanded to renegotiate the price. I demanded a copy of the valuation report and the text type for the figure was different to the rest of the report. He had been busy with the tippex bottle.
I checked with his mortgage broker who said the valuation had been spot on. The word 'Fraud' got this purchaser a bit hot under the collar. He completed the sale at the originally agreed price.
The valuation often excludes the cost of any works that may be required ie extra loft insulation, damp or wood worm treatment, rewiring etc. Which is usually unfair as the property could be priced to take these things into account.
On one occasion we did have one chappie who said the property had been downvalued by £20k and demanded to renegotiate the price. I demanded a copy of the valuation report and the text type for the figure was different to the rest of the report. He had been busy with the tippex bottle.
I checked with his mortgage broker who said the valuation had been spot on. The word 'Fraud' got this purchaser a bit hot under the collar. He completed the sale at the originally agreed price. stc, I currently work in the business - a val for mortgage purposes is (as I am advised) typically lower than an estate agents or independent valuation because the surveyor is valuing the land & building - and NOT taking into account the new kitchen/bathroom/numerous other home improvements - for advice I can only repeat the previous answer: ignore the person & hold out for what you think it's worth - hope this helps
>> Edited by minimax on Thursday 23 January 23:59
>> Edited by minimax on Thursday 23 January 23:59
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