Estate agent - been given the run around

Road_Hog

Looking for some feedback, from people in the business.

I'm selling a house.It's a fairly straight forward sale, it isn't my home and the buyer is a first time buyer, so no chain.

I got the survey from the buyer (mid range home buyer) and he basically covered his @rse saying that the buyer should check everything and that there was the possibility of subsidence. So the mortgage lender asked for a structural engineer's report, which I duly paid for.

The report has come back, no subsidence, some 'slippage' but not recent and has a couple of recommendations. It's a mid terrace property of about 75 years of age.

Now, the estate agent is telling me that the mortgage company are going to send in a builder to evaluate the cost of what the structural engineer has mentioned in his report.

My internal alarm bells are ringing and my gut feeling is, mortgage company will not grant a loan to the buyer before works are done or buyer is getting cold feet and the estate agent is trying to keep them interested. The estate agent denies that the mortgage company want the work done, just that they want a costing on it.

I'm looking for replies from people that know the industry, I've been a bit fed up with the estate agent who promised to always keep me in the loop, but without going into all the details, has let me down some what and I've spent my time chasing them, when really they should be calling me.

R_P_W

Why did you pay for the structural survey?

Road_Hog

R_P_W wrote: »

Why did you pay for the structural survey?

Because the buyer has maxed himself out with the mortgage and has no spare cash left after his expenses so far (such as the home buyer survey). And the estate agent talked through him his options and if he borrowed the money, then if the mortgage company re-checked his finances prior to purchase, then it may show up as a problem.

I had a choice, let the deal go through and re-market it, or pony up myself. I chose the latter. I've kept the ownership of the survey, only passing it on to the estate agent for mortgage purposes. The buyer can have it if the sale goes through, otherwise I've paid for a survey on my house.

I see it as an investment or a small cost on the sale of a house with quite a fair bit of equity in it.

The_Earl_of_Streatham

I'm not an industry insider but I'll put my oar in anyway. If your buyer can't afford to do those things s/he needs to in order to get a mortgage then they're not really a buyer. Any number of things can go wrong which could be settled with money your buyer doesn't have.

If the lender wants to get building estimates to put faults right it is very likely they will be retaining those costs and not giving the full mortgage to your buyer until the work is done. Your buyer doesn't have the money for a structural survey... Draw your own conclusions.

Road_Hog

The_Earl_of_Streatham wrote: »

I'm not an industry insider but I'll put my oar in anyway. If your buyer can't afford to do those things s/he needs to in order to get a mortgage then they're not really a buyer. Any number of things can go wrong which could be settled with money your buyer doesn't have.

If the lender wants to get building estimates to put faults right it is very likely they will be retaining those costs and not giving the full mortgage to your buyer until the work is done. Your buyer doesn't have the money for a structural survey... Draw your own conclusions.

I take your point, but the buyer does have the mortgage in place (through the estate agent's mortgage arm). The stumbling block is just getting the mortgage company to okay the loan. I'm kind of, of the view that if I can get it pushed through, then it's down to the buyer then.

I just feel I'm not getting the full story from the estate agent.

Guest101

Road_Hog wrote: »

Because the buyer has maxed himself out with the mortgage and has no spare cash left after his expenses so far (such as the home buyer survey). And the estate agent talked through him his options and if he borrowed the money, then if the mortgage company re-checked his finances prior to purchase, then it may show up as a problem.

I had a choice, let the deal go through and re-market it, or pony up myself. I chose the latter. I've kept the ownership of the survey, only passing it on to the estate agent for mortgage purposes. The buyer can have it if the sale goes through, otherwise I've paid for a survey on my house.

I see it as an investment or a small cost on the sale of a house with quite a fair bit of equity in it.

There probably is a clause in the survey, that it is conducted on behalf and for the sole benefit of you, and must not be passed on to 3rd parties.

Whilst they annot enforce the 2nd part, since you have the document. They can refuse liability onto the new owner, should they have missed something.

ValHaller

Road_Hog wrote: »

.... I just feel I'm not getting the full story from the estate agent.

Try this for size:

Agent has a buyer who is short of funds, but he has 'complied' and gone to them for a mortgage, so now the agent is on for mortgage brokerage fees as well as commission.

Agent is motivated to get agreed price down to ensure the deal goes through.

Question: Did the Agent have a hand in engaging the Structural Engineer?

harrys_dad

ValHaller wrote: »

Try this for size:

Agent has a buyer who is short of funds, but he has 'complied' and gone to them for a mortgage, so now the agent is on for mortgage brokerage fees as well as commission.

Agent is motivated to get agreed price down to ensure the deal goes through.

Question: Did the Agent have a hand in engaging the Structural Engineer?

An Estate Agent who is motivated by something other than getting the best deal for their client, the vendor? Surely not. Shock, horror!:rotfl:

Road_Hog

ValHaller wrote: »

Try this for size:

Agent has a buyer who is short of funds, but he has 'complied' and gone to them for a mortgage, so now the agent is on for mortgage brokerage fees as well as commission.

Agent is motivated to get agreed price down to ensure the deal goes through.

Question: Did the Agent have a hand in engaging the Structural Engineer?

Okay, thanks for some useful input.

Buyer has agreed mortgage through estate agents, so the finance is in place. So the actual mortgage is agreed, I was given a copy of the surveyor's report, which stated that he wasn't willing to give a valuation until a structural engineer's report was done.

Yes, the estate agent did have a hand in the structural engineer, although it was commissioned directly with him and not through the estate agent.

Taking your suggestion on board, the agent is in for a shock if this is their game. It's not my home, I'm not in a chain and I'm not desperate to sell - would like to, but there are no stress levels here. Plus the three month contract expires today, so they're out of contract now and I may (sorry I meant will) just try another agent.

I'm a straight forward guy, if I shake on a deal, then I'll stick to that, I wouldn't consider accepting a higher offer if it came along, I wasn't brought up like that. But I don't like being mucked about nor do I like being lied to.

I have a feeling this is all going to unravel very quickly and both buyer and agent are in for a shock, as I go, sorry, all bets are off, I'm not desperate, so go find some other mug.

Road_Hog

And the show moves on. Got a call from the EA yesterday, the 'builder' is going in on Thursday to get a quote on the work that needs doing.

I'm like, seems to have changed from the estimate for what the work 'might' cost, to the work that needs doing. I'm quite attuned to these subtleties.

So, I say, fine, but if the work needs done, I'm going to get my own people in for a quote. I just know that come the weekend, it will be, the mortgage company won't lend the money until the work is done. Well tell me that now, or better still, tell me over a week ago.

Because right now, I'm thinking, take the property off of the market, do it up and put it back on the market in the Spring. Meanwhile, if needs be, get a few Polish in, who just want a bedroom to crash in and a back garden to drink their beer, and are happy to accept a cheap rental for 6 months whilst the place is being refurbed.