Estate Agent not fully informed me, what should I do?

DubDub · 22 August 2019 at 10:15AM

Hi all,

My partner and I are currently undergoing our first purchase, and decided to go through the estate agent to setup the mortgage and make sure everything was good, which I now regret.

We went in, and they gave us the speech about how they're providing honest advice and giving us what is best for us and so, we were happy and we continued. He suggested we look for a mortgage with a bank that provided a survey and so on, and I mean, why would we say no.

So we went with it, and got it all back the other day. Turns out we were provided a valuation alone, no Homebuyers survey. We've since discussed it and decided we'll go with an independent provider to get a Homebuyers survey, because we want to be sure the house won't fall down.

Now, at this point, I'm sure some of you probably think we should have done some independent research into surveys and so on to see what was what, however this was near the start of the process, we were told we'd get a survey, and I thought that would be satisfactory, something we didn't have to worry about.

There are two things I'd like to hear your thoughts on. First, is there anything I should think about bringing up with the estate agent? I don't feel misinformed, just not full informed, and did not receive any advice about surveys and what survey we would be provided. You may be reading this thinking 'It was obviously a valuation' and my reply would be, it may be obvious to you, but not to someone whose never done it, as we were told 'The survey would be taken care of by the mortgage provider' from the start, we never condiered to look into it.

Second, how trustworthy is said valuation? I reckoned they just looked at similar houses in the area and evaluated their prices. I don't think it's any useful indication to the state of the house, and whether or not it's about to fall over. We're considering just trusting the valuation to be satisfactory and not getting a survey. But I feel like we'd be perhaps making the same mistake twice.

ACG · 22 August 2019 at 10:32AM

I am not sure if it is a requirement to discuss options on survey types - but we do. We have a tick box with the 3 options and ask the customer if they are aware of the differences - most first time buyers are not in my experience.

- We do not offer that as a way to up sell as we make nothing from whichever option is chosen.

A basic valuation could be ok, if someone went to the property and had a quick look around it might be sufficient. But a basic valuation could be as little as a drive by or even something similar to zoopla making a decision.

It is all about what you want, not the agent, not the broker and not the vendor.

MEM62 · 22 August 2019 at 10:43AM

Firstly, an in-house mortgage 'advisor' at an estate agents should be the last person on your list of people to consult. He will be limited in experience and/or qualifications and will only have access to a restricted number of products/lenders. If you want a mortgage go to a proper mortgage broker.

In respect of surveys, any survey arranged by a mortgage company is to protect the mortgage company - not you. The main purpose is to establish that the asset against which they are lending has sufficient value. (Look upon it as a valuation rather than a condition survey) If you want a survey done to offer you some assurance you will need to arrange that yourself.

DubDub · 22 August 2019 at 10:50AM

Hi, that's exactly what I expected to happen. I know if it did, we wouldn't currently
be in this situation, I would have just booked a survey from the start.

I'm slightly worried about the investment we will lose should anything show up. We already paid £500 to the estate agent, will have to pay £300 to the conveyancers should we back out, and we're looking at roughly £400 for a survey which may tell us our money and effort was wasted.

I have a feeling there are a few clauses in there that say 'Should the fault of the property transaction failure lie with the buyer, then there will be extra costs involved'. I feel like that translates to a scenario where a survey reveals unexpected faults we're not comfortable with.

Thankyou though, I'm glad to see some operate honestly and fairly.

DubDub · 22 August 2019 at 10:52AM

Firstly, an in-house mortgage 'advisor' at an estate agents should be the last person on your list of people to consult. He will be limited in experience and/or qualifications and will only have access to a restricted number of products/lenders. If you want a mortgage go to a proper mortgage broker.

Yes, I think we've come to see that all too late unfortunately.

cattie · 22 August 2019 at 11:08AM

If you were told you'd get a free survey by going with a particular lender by the ea, then yes it can be misleading by a ftb who doesn't realise that all lenders do a free valuation (often called a basic survey). But as buyers you should really have asked what level this offered 'survey' was, ie, valuation, homebuyers, or full buildings survey.

The valuation survey tends to state the value of the home, which is usually the amount you've agreed to pay. If the property is in need of serious updating or refurbishing, then it can sometimes be down valued but it would be extremely rare for a property to get a valuation of more than the agreed price. This valuation is just to let the lender know that the property is worth what they are going to lend you.

You don't say how old the house is, but with older properties, say Victorian or early, I'd definitely go for a buildings (sometimes known as a full) survey. Built around the 30's a homebuyers survey should be fine & personally anything from the 60's onwards I'd not bother if the property appeared to be well maintained & looked after.

Yes do mention to the ea that you feel the subject of surveys & the different types were not explained to you & that you were under the impression you were being offered more than just a valuation by this lender & for him/her to ensure future ftb's know what is available to them as far as surveys go. Especially as often if a buyer asks the bank's surveyor to carry out the level of survey they'd prefer, at the time of doing the valuation, it can work out cheaper than commissioning one yourself from a different surveyor.

MortgageMamma · 22 August 2019 at 11:35AM

You can still renegotiate with the seller should anything untoward show up.

On our advice checklist/compliance service it is mandatory to discuss survey types with purchase clients.

A mortgage valuation is for the lenders benefit and nine times out of ten you don't get a copy. Occasionally structural issues are flagged up and a lender will insist on a structural survey. But just because nothing has been flagged up on this survey doesn't mean there are no minor structural problems.

By instructing your own survey the surveyor has a duty of care to you, not the lender - so everything in that report is in your best interests. It also provides a certain level of indemnity should a structural or other serious issue be present and the surveyor didn't disclose it/notice it.

If you've got a gut feeling that you need a survey and want reassurance then go for it - buying a house is the biggest financial transaction most people make in their lifetimes. It can be costly if it goes wrong once you've bought the house, so any minor losses now shouldn't be viewed purely as current financial loss as they could potentially offset future losses.

Nothing worth having in life is free.

DubDub · 22 August 2019 at 12:56PM

Thanks for the assistance, we've decided to go with a survey and while I personally feel a little stung at the estate agent's financial advisor, it's best to move on and hope nothing big comes up.

Lokolo · 22 August 2019 at 1:13PM

DubDub wrote: »

We already paid £500 to the estate agent,

Why have you paid the estate agent anything??

MEM62 · 22 August 2019 at 1:37PM

DubDub wrote: »

I'm slightly worried about the investment we will lose should anything show up. We already paid £500 to the estate agent, will have to pay £300 to the conveyancers should we back out, and we're looking at roughly £400 for a survey which may tell us our money and effort was wasted.

You are looking at it the wrong way. That £400 is a potential investment that could save you huge amounts of money and heartache should you buy a house with unseen and expensive issues.

DubDub wrote: »

I have a feeling there are a few clauses in there that say 'Should the fault of the property transaction failure lie with the buyer, then there will be extra costs involved'. I feel like that translates to a scenario where a survey reveals unexpected faults we're not comfortable with. .

I wouldn't read it that way. If a survey finds issues that affect the value of the house or, worst case, would prevent you from wanting to purchase it at all, that does not make you liable for the transaction failure.

Lokolo wrote: »

Why have you paid the estate agent anything??

Good question!

csgohan4 · 22 August 2019 at 1:56PM

Another post for barge pole for EA services, more often than not they are commission loaded poor quality services.

Got a building survey for 600 pounds a few years ago and the EA wanted to charge me £1000, What a joke, politely declined, also tried peddling their MA to me, again no and they wanted a DIP so gave them my broker's details and that was the end of that

Estate Agent not fully informed me, what should I do?

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