A surveyors’ body is calling on estate agents, conveyancers and lenders to advise buyers to get a survey done of any property they are buying.
The Residential Property Surveyors Association (RPSA) has issued the call in the light of announcements by a number of lenders, including Nationwide and Santander, that they may no longer necessarily commission physical mortgage valuation reports.
Instead, lenders will increasingly rely on automated desktop valuations.
A number have been doing so since last autumn, partly in order to overcome severe valuation delays that dogged the market.
RPSA chairman Alan Milstein said: “Buyers have often mistaken the lender’s valuation for a survey of the condition of the property they are about to buy. However, with an increasing reliance on desktop valuations, it means that no one with a trained eye will be visiting the property, let alone assessing its condition.
“This leaves consumers at significant risk.
“It’s more important than ever that lenders, lawyers and estate agents give buyers clear advice about the need for a good-quality survey by a trained, and preferably independent, specialist residential surveyor.
“Ignoring this is ignoring their duty of care to their client.”
According to the main surveyors’ body, the RICS, home buyers routinely spend thousands of pounds on unforeseen repairs when they move in to their new home.
Global property standards director Peter Bolton King said: “Home buyers are often confused about their lender’s valuation. Many still believe their valuation is a survey and is being done for their benefit.
“Increasingly, lenders take a risk-based approach and might well use an automated valuation model which can result in nobody physically visiting the property.
“Our independent research found that on average, home buyers spent £5,750 on unforeseen repairs when they moved in to their new home. The vast majority will have relied on the lender’s valuation only.”
Comments (7)
Hmmm…… and do you remember who benefited most from the ill fated Home Information Packs and who pushed for there introduction? Yes none other than your friendly(?) neighbourhood RICS surveyor who was paid up front before a property went on the market irrespective of whether it sold or not (alarm bells ringing as I seem to imagine someone else is doing this now 🙂
And as for an actual survey? Have you looked at the caveats and disclaimers? Unless you have a full structural and pay top whack they are pretty meaningless. And even then?
And nearly £6000 on average on unforeseen repairs?
PI is one reason why they will not talk to you. They admit liability if they change their mind. The story is nothing new, its being going on for years, as has same property, different values by surveyors, hence the 10%+ rule which is more in-liner with the lead story. I’ve lost count over the number of drive-by valuations for lenders (normally very low LTV requirement) I have done over the last twelve months and on each one I have put a dirty great BIG disclaimer. Solicitors should be on the ball with this one with borrowers.
I think it is the individuals fault regarding my complaint, some surveyors will speak but the majority will not, even the call centres say they are allowed to talk just not willing.
The problem you have is you cannot “Have a go” at them as they see themselves as gods, if you upset them expect the next property or two to have “Issues” on valuation.
From what i understand solicitors are legally obligated to advise their client to have a survey. I think that is regulation enough. Why should we feed these lazy surveyors and solicitors leads? When was the last time you saw a proper advertising campaign for solicitors or surveyors? they rely on estate agents as it is and then loath to work with us! and we get very little in the way back of probate, we even had a solicitor round our way recommend an online agent, talk about biting the hand that feeds!
Surveyors may get more of a buy in from estate agents if they worked with us. We have some local surveyors who are very good but too many for the larger companies are unapproachable. We has a property a few weeks back down valued by £800 not a retention but down valued. Surveyor would not even speak to us to discuss it! Same as another downvalued by almost £20,000 when too in a worse state in the same road had sold for the same price! Would not speak to us or look at comparables. Why am I going to push surveys when they do not even have the time or manners to speak to my team??
Why would they speak to you Smile? they can look any value up on the internet and know it is right. (<font> sarcasm off)
What you probably ought to understand is that in the same way Michael Gove has caused the teaching profession to become a job only the daft would contemplate, the same has happened to surveying.
With every respect and admiration for anyone under 45 who is a general practice surveyor, I admire your determination but I really can not understand why you are bothering.
There is a worrying and concerning back story to this that I highlighted in Spring 2012. This is just the minor irritation that I believe is going to lead to a massive weeping ulcer on the leg of the industry.
I really wouldn’t be too hard on the surveyors themselves they are working a thankless treadmill that would be very different if they had any say in the matter.
a lot of surveyors working for themselves don’t do valuation anymore (if they are good enough not to)…. there’s no money in it, why would you spend the time doing a valuation for £75 (less vat / less tax) when you can do a home buyer or a building survey for £400 +…. valuations are a pain for most self employed surveyors…. and then the agent wants to spend more of their time talking about it…. I know they are RICS regulated but they have to make a living, pay peanuts and all that….. price driven down by the panels
Ever had one of those days where stuff winds you up? Delete rather than post comment was the sensible option on this occasion!