Vendor is pulling out. Can I get compensation for survey and legal fees?

HAMISH_MCTAVISH

JQ. wrote: »

Yes, but I'll bet not many people deviate from that value. If an expert tells me my house is worth £100k , why on earth would I sell it for £75,000?

And in England, the estate agent comes out and sets a value.

No difference.

If both the vendor and purchaser were represented by their own Surveyors who negtiated the price, I could understand it. But as it stands it still looks tome that Sale Prices are dictated by a 3rd party.

The price is still agreed by the seller and buyer.

I'll agree it does arm the seller, and buyer, with more accurate data as to what the house is likely to be worth than estate agents overpricing to win the listing, as happens in England, but ultimately a house is only worth a price that is agreed by both the seller and buyer. That can be more or less than the valuation.

JQ.

HAMISH_MCTAVISH wrote: »

And in England, the estate agent comes out and sets a value.

No difference.

I can only speak for myself, as reading this forum it does appear that I am in the minority, but I completely ignore asking prices for exactly the reason they've been set by Estate Agents and Vendors with unrealistic expectations. However, I think I may be less dismissive of a value stated by a Chartered Surveyor. Therefore, it would infulence me in the negotiation process and it would influence the Vendor when setting the asking price.

HAMISH_MCTAVISH wrote: »

The price is still agreed by the seller and buyer.

I'll agree it does arm the seller, and buyer, with more accurate data as to what the house is likely to be worth than estate agents overpricing to win the listing, as happens in England, but ultimately a house is only worth a price that is agreed by both the seller and buyer. That can be more or less than the valuation.

Yes but that price will be very heavily influenced by by the Surveyors Valuation - you might be able to negotiate small deviations from that number, but I imagine that would be it.

From my outsiders point of view (being in England), that gives Surveyors too much influence on the market.

I do agree the Scottish system is better with binding offers, but I definately don't like the idea of 3rd parties influencing the market. If I was a buyer up there I'd get my own independant advice and if I was a seller I'd get 5 Surveyors to value my house and use the highest one.

HAMISH_MCTAVISH

JQ. wrote: »

I completely ignore asking prices for exactly the reason they've been set by Estate Agents and Vendors with unrealistic expectations.

However, I think I may be less dismissive of a value stated by a Chartered Surveyor. Therefore, it would infulence me in the negotiation process and it would influence the Vendor when setting the asking price.

So that's a good thing though, surely?

You don't think it's an improvement to have sellers know upfront a realistic price for the house rather than put a delusional asking price on it?

And for buyers to know upfront a realistic selling price for the house rather than wasting everyones time putting in delusional offers of 30% below and the like?

Yes but that price will be very heavily influenced by by the Surveyors Valuation - you might be able to negotiate small deviations from that number, but I imagine that would be it.

The surveyors valuation is comprised of comparable achieved prices adjusted for any particular individual house condition and local market conditions.

It's not voodoo, and they're all going to be quite similar.

From my outsiders point of view (being in England), that gives Surveyors too much influence on the market.

I still don't see how it's any different to having a mortgage valuation set the realistic price a house can achieve.

I do agree the Scottish system is better with binding offers, but I definately don't like the idea of 3rd parties influencing the market.

3rd parties influence the market in England too. Just less accurately.

If I was a buyer up there I'd get my own independant advice and if I was a seller I'd get 5 Surveyors to value my house and use the highest one.

Seems an expensive way to go about it, given how similar all the valuations are likely to be.

harz99

HAMISH_MCTAVISH wrote: »

All the main high street banks will accept a home report valuation for mortgage purposes from the reputable local surveyors, who will all be on their panel anyway.

The valuation must be less than 90 days old. If it expires, it must be refreshed.

adouglasmhor wrote: »

Not for several years, we still have Home reports here and have done so for years which cover all that. So no survey fees for buyers.

HAMISH_MCTAVISH wrote: »

False.

Mortgage lenders, or at least the main high street banks, are accepting home report values from local surveyors on their panel for up to 90 days.

I have heard of a few cases cases with online lenders, or English lenders that don't have a presence locally, requiring another survey. And also of cases where the local banks won't accept surveys from the cheap national providers as they're not on the local panel.....

But if you're dealing with a major high street bank and a reputable surveyor on the local panel, then the system works as described.

The Home Report has NO legal requirement for a mortgage valuation report to be included. The Single Survey that is actually required is an informed report on the home's condition and value.

In the current very slow market, a mortgage valuation report will normally be out of date (over 90 days old) before being used, and so will need to be "refreshed" which means be done again at a further fee to the Surveyor from the vendor- a nice earner!

What often happens is that the vendor pays for both Home Report and Mortgage Valuation Report without ever realising they don't need both to market their property, then 90 days later they pay again to "refresh" the MVR, then when the property eventually finds a buyer that person also end up paying for an MVR or full survey either because their lender requires it or they have been advised to get their own done - a really nice earner for the Surveyors!

As a buyer I would always have a full survey for myself; as a vendor whilst I am happy to pay for the required Home Report I will not pay for a limited life MVR just to market my property.

bris

I have bought and sold lots of properties and concluding the missives is no different than exchaging contracts in Englan and Wales. Having an offer accepted is not legaly binding and concluding missives can be delayed for as long as one or the other party decide to delay them, this can be in a week or months down the line while funding etc is sorted out, of course the buyer or seller can pull out if they think the missives are being delayed, but this is no different to the OP having his offer rejected before the exchange of contracts, so no I am not wrong.
Some banks but not all will allow a survey, from a surveyor on their panel of accepted companies 90 days, but some only allow 30 days before being outdated so again no I am not wrong. Even if it is 90 days then the seller would have to get a buyer very quickly to save the buyer a survey fee. Not many properties are selling within the 90 days so the odds of a buyer being found who happens uses the bank that would accept the survey is very slim indeed.

EyesAndEars

As I thought, my vendor is not budging any lower than an extra £5k he's suddenly demanding.

So, I'm cutting my losses and opting out. I've lost a grand - and there's absolutely no guarantee it won't happen to me again - but there is no way I'm going to let him have extra cash. Wierdly enough, I've never even been that fond of the place, I just haven't found anything better.

Anyone got a one-bedroom flat to sell in West London, zone two, for up to £180,000?!

I have a mortgage and lawyers in place...

DVardysShadow

EyesAndEars wrote: »

... So, I'm cutting my losses and opting out. I've lost a grand - and there's absolutely no guarantee it won't happen to me again - but there is no way I'm going to let him have extra cash. Wierdly enough, I've never even been that fond of the place, I just haven't found anything better.

That's the way to do it! Tell him to get lost if he comes back to his original price. I have this idea that you will find something much better for you and in due course you will actually begin to think that the grand is one of the better grands you have spent.

EyesAndEars

Thanks to you all for your support and valuable information - some really interesting points here.

Maybe I should move to Scotland instead?!

Living outside London is a difficult option because my partner and I both work fairly antisocial hours and I travel a lot with my job, so public transport would be a problem. That, and, well... we like inner city living. Wish we had the buzzy feel of inner-city salaries too!!!

Anyway, must get onto rightmove.co.uk ...

MrsAmanda_2

EyesAndEars wrote: »

Anyone got a one-bedroom flat to sell in West London, zone two, for up to £180,000?!

I have a mortgage and lawyers in place...

Nope, but I can do you SE London zone 3 if you want to try south of the river!

cardinalbiggles

EyesAndEars wrote: »

Maybe I should move to Scotland instead?!

Thats the most sensible thing thats been said on this thread Its not such a bad place up here!