House valuation risks - what strategies for a buyer?

StarX_2

Hello everybody,


Two months ago I had to pull out from a purchase, as the Homebuyers report highlighted a lot of problems with the house. I lost all the £450 paid for the Homebuyers report, as the mortgage lender would refund part of it (i.e. the equivalent to a basic valuation costing £250ish), only if the sale went through.


I am now reasoning about this valuation issue to try and shift the risks associated with it towards the lender for my next purchase attempt.



Do lenders exist which would pay for valuations regardless of the sale going through (i.e. if I decide the basic valuation report is not satisfactory)? It sounds like an impossible expectation. Do they show you the report relative to the basic valuation at all, after they have carried it out?


Another related question. I read this comment from an old post:

“You pay a surveyor, if he gets it wrong, you can sue. Somebody else instructs the surveyor, you can't sue because of privity of contract. Fought out in the courts about bank valuations (3rd party duty of care as people relied on them regardless) so we'll have to wait and see.”


What is the state of affairs with the above? Am I legally covered by the lender’s valuation or is still a grey area?

What if I request an “upgraded” Homebuyers, paying the difference out of my pockets (as I did for my last house)? Would I be the instructor in that case, so that the above comment no longer applies?

Thanks in advance,

StarX

Compensationitis

A 'Home Buyer's Report' is just an expensive valuation. If you want the proper job you need a 'Full Survey', sadly none of them afford any real protection because the contracts are full of clauses, and they aren't Santa Clauses either.

Anyone with a bit of nouse can see if a house needs some work, look for crappy windoems, damp in the bay window or around the casements, in the loft you look for lousry roofing and doen below you look for cracks.

It isn't rocket science.

Housing is one of the few purchases where 'caveat emptor' still applies, unlike financial services.

Come to think of it, the UK is one of the few places whare a run-down old house is valued at the same heady heights as a brand spanking new home, does that make any sense?

NO.. it certainly does not!

dunstonh

Its just a basic insurance policy in a sort of way. If you had bought that house without the checks, then you would now be regretting it with all sorts of potentially much bigger bills.

StarX_2

Mhhh...
I am not sure, but the second post seems to imply there is little/no point in asking for a Homebuyers; it's either basic valuation or Full structural then?.

Is that correct?
StarX

dougk_2

Basically, I think the point is that surveyors always try and cover their backsides.... they will do the same whether it is a full structural report or a homebuyers report.

A homebuyers report is there to give you an idea of potential problems and to give you piece of mind (though they always seem to say that flat roofs have a limited life and the elctrics and plumbing should be checked by specialists!).

I would say for the extra £200 or so do it anyway and get the homebuyers report. It gives you something to read and think about. Any major things not picked up on do give you ground to sue the Surveyors and will support any insurance claims you make. For example should you suffer from subsidence later and there was no mention of it in the report then the insurance companies are likely to be less of a problem when making a claim.

StarX_2

Do you know if one can make any use of the report later on? for instance when remortgaging in 2 years time?
SX