Independent / developer-appointed valuation

starrybear

Hi,

Quick question - we're having our house valued by two local agents appointed by a new-build developer, with a view to part exchanging.

However, we have already requested an independent valuation from one of the agents they've also appointed.

Is there going to be any sort of conflict of interest?

Any tips for working this to my advantage?

Many thanks

eddddy

I suspect that the EA will have to use some "clever wording"...

If he/she wants to get your business as your EA, they might value it at £x

But a p/ex valuation for the builder might be £y (where y is less than x).


An example of the justification / "clever wording" might be - "we would market it at £x, but you should expect to get offers of £y".

MrJB

Are the agents regulated? member of RICS or anything?

In theory, they cannot act for both parties. Presumably you're not having a red book valuation carried out? I wouldn't be particularly trusting of a value placed on a property by an estate agent anyway. I'd look at getting a valuation carried out by a chartered surveyor - at least they have something to lose if they're dishonest!

eddddy

MrJB wrote: »

Are the agents regulated? member of RICS or anything?

In theory, they cannot act for both parties. Presumably you're not having a red book valuation carried out? I wouldn't be particularly trusting of a value placed on a property by an estate agent anyway. I'd look at getting a valuation carried out by a chartered surveyor - at least they have something to lose if they're dishonest!

You might be 'over thinking' this a bit.

The developer wants make an offer to buy starrybear's house (as part of a p/ex deal) - so the developer is asking the opinion of a couple of EAs on what to offer.

I guess the developer might then offer high or low - depending on how business is going. Starrybear could also try negotiating up the offer.

Starrybear then needs to decide whether to accept the offer, or try selling it using an EA instead. Local EAs would be the best people to advise Starrybear what they could sell the property for.


A relevant story: http://www.theguardian.com/money/2014/mar/09/house-part-exchange-schemes-value-money

starrybear

Some good advice there - thank you. The developer has acknowledged that we are already booked with one of their chosen agents, so are just going to go on their valuation once the appt is over - why do I feel so nervous?! I think I'm feeling like I've lost a bit of the control, having booked independent valuations as well as EA'S that may well be in cahoots!