When I sit back and think about the job I do, I know that it is not just about law. It is about being the trusted confidant with the law in the background and there are occasions when it is like a game of poker.
That client who has a survey report which reveals far more work than was anticipated and needs guidance as to what to do. We cannot advise on the report but we can point the client in the right direction and it is always surprising how few buyers do not realise that they can pick up the phone and just ask the surveyor what they should do next. And once that report has been done, the costs of the remedial work are known, we just wait to see if the seller will pay.
But it always fascinates me how such scenarios play out. We all know that there are those clients who are just going to buy the house no matter what works are needed. But this week I had an interesting scenario and I am sure that many of you have experienced a similar situation recently.
The survey for the lender down valued the house by £75,000. My thought is that the buyer (my client) should just walk away. Why would you pay that much more for a house? If you were to sell it the day after completion, then it is likely that it would still be valued at that much less and who would take that bet? But my client really loved the house and wanted to buy it no matter what. And I do understand that . But the lender was not prepared to lend on it at the price my client wanted to pay so he would have needed to find an extra £75,000 to proceed.
Enter Mr. Estate Agent – just go to another lender.
Now I know that my client wanted to buy the house; the agent knew my client wanted to buy the house; but whereas I was being cautious and did not want to risk my client’s monies, the agent wanted the sale (sorry to sound so cynical) and knew that another lender may not downvalue the house, especially if they just carried out a desk top valuation.
And guess what? The agent is now the hero as the new lender was prepared to lend… without seeing the house… and has persuaded my client not to have a homebuyers’ report done as it will waste time…
Sometimes I have no words…
This is written by a real high street conveyancer who wishes to remain anonymous. Read more in Today’s Conveyancer every week.
One Response
Yes I can relate to this totally
Buyers look through rise tinted glasses n estate agents play on that – primarily thinking about their commission !
The new lender tells the buyer what he wants to hear , as they are after all selling money and don’t care about the buyers future financials if ie they have to sell in the near future with a reduced price or indeed about negative equity !
Buyers can be like sheep they just go where they are led .
It’s worth a diary note on the file from the point of view if it comes up for file review or an enquiry from the grumbling client later on abandoning to remind the fee earner as to the sequence of events