House Valuation - Pressure from Agent

Charlie1985

Further note estate agent has advised the below regarding our mortgage and refusing to share a revised sales memo:

To clarify regarding the mortgage offer, a new offer is not required in this case. You would only need a new mortgage offer if your lender had valued the property at the original agreed sale price of £612,500 and you had subsequently renegotiated to a lower figure.

GDB2222

3. For peace of mind our solicitor has advised to get a RICS survey done. We have told the agents and they have said why has this not been done already (we are 8 weeks into the process). They are trying to steer us away from the survey.


The agent just wants their commission. A survey is just one more potential stumbling block between them and the commission. Of course, it’s sensible to get a survey, although it might have been better to get that done before renegotiating the  price. 

You didn’t see which country you’re in, but in England eight weeks is pretty quick progress. 

Chief_of_Staffy

Charlie1985 said:

The issue now is the estate agents are saying they want exchange in 4 days time. We have replied to say this is not realistic due to the below:

What has the exchange date got to do with the Estate Agent? It has nothing to do with them.

Charlie1985

The estate agents are dictating the exchange dates as they that’s what the vendor wants. They have said they will put these dates on the sales memorandum.

Are correct we need to inform the lender of the change in price? Estate agent thinks we don’t as we are topping up the difference ourselves.

Chief_of_Staffy

Charlie1985 said:

The estate agents are dictating the exchange dates as they that’s what the vendor wants. They have said they will put these dates on the sales memorandum.

Are correct we need to inform the lender of the change in price? Estate agent thinks we don’t as we are topping up the difference ourselves.

Right, I thought you meant the estate agent was setting the date. Yes, you have to inform the lender of the price change. Your solicitor should do that for you.

Charlie1985

Estate agent is saying as current offer has been issued at £602,000 inline with their valuation that our mortgage offer does not need any amendments as the additional difference (£6k) in the new agreed sale price is coming from our own funds.

Charlie1985

To be fair I think the agents are setting the date but saying the vendor is dictating.

Chief_of_Staffy

Charlie1985 said:

Estate agent is saying as current offer has been issued at £602,000 inline with their valuation that our mortgage offer does not need any amendments as the additional difference (£6k) in the new agreed sale price is coming from our own funds.

I think your Estate Agents may be idiots. The purchase price of the house is part of the contract with your lender and forms the basis for the loan-to-value ratio. Whilst a lower purchase price is generally advantageous to the lender, they still need to be told because it affects the material contract.

Tiglet2

@Charlie1985 Agents can suggest dates, they cannot dictate them. 

The main part of buying a property is the legal transfer of ownership from the seller to the buyer, i.e. the legal conveyancing work that your solicitor will do.  Until that work is complete, there will be no exchange no matter what the agent says.

Your solicitor will almost certainly be acting for your lender as well, so if there are any discrepancies about the mortgage offer and the purchase price, then they will query this with the lender anyway.

diggingdude

FWIW your solicitor lets you know when you are ready to exchange. Tell the estate agent to speak your solicitor and see what response they get to that nonsense