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Original poster

Surveyor refused to carry out valuation due to conflict of interest?!

57 replies

Freestylem · 02/07/2022 11:23

I was booking in a valuation with a surveying company for the house I am purchasing. I spoke to the estate agent beforehand to give him the heads up that the surveyors would be contacting him to arrange access. The estate agent said he couldn't understand why I needed another valuation as I already had a valuation from my mortgage lender. I explained that the valuation was a free addition to the homebuyers survey I had purchased so there was nothing to lose in obtaining a valuation for my personal use.

I received a call from the surveyors to say that they had received a call from my estate agent letting them know we had already received a valuation from our mortgage lender. The surveyors said they therefore could not carry out the valuation as it would be a conflict of interest. I said the valuation from them would be for my own personal use, how is there a conflict of interest? The mortgage lender's valuation was with a different surveying company.

Firstly, is there a conflict of interest? Secondly, I am very concerned that the estate agent has gone to these lengths to stop me having a personal valuation! There are 3 properties on the same estate as the property I am buying that have not sold yet despite being on the market for a while.

Property in question is over £500k.

OP posts:
NiceTwin · 02/07/2022 11:29

Why do you want a valuation for your own personal use?

Are you planning on using it to put in a lower offer?
I too would be suspicious of your motives if I was the vendor or estate agent.

Arenanewbie · 02/07/2022 11:29

Absolute rubbish. You can do another valuation of course. Are you doing building survey or home buyers report or just literally another valuation?

thegcatsmother · 02/07/2022 11:30

Have you asked the EA what he thought he was doing?

SnowyLamb · 02/07/2022 11:32

NiceTwin · 02/07/2022 11:29

Why do you want a valuation for your own personal use?

Are you planning on using it to put in a lower offer?
I too would be suspicious of your motives if I was the vendor or estate agent.

Yes, you can see why the EA wouldn't be keen, especially if they know it's overvalued, but why does that create a conflict for the surveyor?

sunnyside238 · 02/07/2022 11:36

There would be no benefit of the surveyor who did your mortgage valuation to overvalue the property

If anything they are known for undervaluing

If they have valued it at what you're paying I would proceed

Original poster
Freestylem · 02/07/2022 11:36

Arenanewbie · 02/07/2022 11:29

Absolute rubbish. You can do another valuation of course. Are you doing building survey or home buyers report or just literally another valuation?

I had a homebuyers survey, but they forgot to mention the option of adding a valuation to that. So I complained that they hadn't mentioned this as being an option, so they offered me a free valuation.

OP posts:
gingersplodgecat · 02/07/2022 11:37

Was the mortgage lender one just the basic valuation survey? If so, I don't understand why another surveyor wouldn't agree to carry out a more detailed one, especially if the property has any age to it.

And what was the estate agent sticking their nose in for? Do they perhaps know something that might be uncovered by a more in-depth survey and they don't want it to come to light? That would ring alarm bells for me.

Roselilly36 · 02/07/2022 11:37

If the valuation service is provided in the survey cost, why would they refuse, is this in their t&c’s? Strange that the EA got involved to prevent it happening? Are the EA concerns that if the valuation is less, it may effect the mortgage offer? Do you have concerns about the valuation the mortgage company came up with? I would want to get to the bottom of this, could you call another surveyor and just make a general enquiry as to their policy, incase it is standard practice.

Original poster
Freestylem · 02/07/2022 11:49

The mortgage lender's valuation came back at the price I am purchasing the property at.

However, as I have been offered a free valuation as part of my homebuyers level 2 survey, I thought I may as well. They have told me there is a conflict of interest as I already have a mortgage lender's valuation.

OP posts:
BlueMongoose · 02/07/2022 11:51

I can't see how it is any business of theirs that you have had another valuation. People often want more than one if the first one seems odd. I can't see a conflict of interest on their side unless the same surveyor is acting for the vendor on the same property in some way. Which makes the survey itself open to the same. Your surveys are 100% none of the estate agent's business, they need to butt out of this.

SausagePourHomme · 02/07/2022 11:54

I don't think they understand what conflict of interests means. They would be if their friends owned the house or the valuer was also thinking of buying it or something like that. Sounds like they just don't want to give a differing valuation, which you are entitled to. It's this coming from them directly or from the estate agents?

Original poster
Freestylem · 02/07/2022 11:54

BlueMongoose · 02/07/2022 11:51

I can't see how it is any business of theirs that you have had another valuation. People often want more than one if the first one seems odd. I can't see a conflict of interest on their side unless the same surveyor is acting for the vendor on the same property in some way. Which makes the survey itself open to the same. Your surveys are 100% none of the estate agent's business, they need to butt out of this.

The first valuation was the mortgage lender's valuation and it valued the property at the price I am paying for it. I can't see why however, I am not entitled to have my own personal valuation?

OP posts:
Original poster
Freestylem · 02/07/2022 11:55

SausagePourHomme · 02/07/2022 11:54

I don't think they understand what conflict of interests means. They would be if their friends owned the house or the valuer was also thinking of buying it or something like that. Sounds like they just don't want to give a differing valuation, which you are entitled to. It's this coming from them directly or from the estate agents?

The surveying company said having another valuation in addition to the mortgage lender's valuation would be a conflict of interest.

OP posts:
SausagePourHomme · 02/07/2022 11:55

Sorry i see that they told you themselves.

This is rum and i would be rethinking the purchase tbh.

MRSAHILL · 02/07/2022 12:01

When I sold a house a few years ago the buyer had a survey/valuation done by the mortgage company and they were happy to lend him the money based on that (they didn't stay long, just had a quick look around) Then right at last minute the buyer suddenly decided to pay for another, more in depth survey himself. It was a bit of a pain and the estate agents told me that not many people bothered doing this, but I happily showed this other surveyor around who stayed a lot longer and looked at things a bit closer but came to exactly the same conclusion as the mortgage valuation surveyor did, that the house was worth the asking price.

kweeble · 02/07/2022 12:06

Sounds like the estate agent is really trying to control your access to independent information. I’d be very concerned.
It is much more likely that a mortgage valuation will exactly match the agreed sale price if there is a substantial deposit as they are done to ensure the value is in the right ball park; they’re working for the lenders to ensure they don’t lose out, not for you.

SolasAnla · 02/07/2022 12:10

First very important point.
Unless you have employed an Estate Agent to act as a house finder and negotiator for you and to look out for your financial interests the Estate Agent works for the Seller not you.

The Estate Agent has no business phoning someone you employ.

However the conflict of interest would likely be between your contract and the pre-existing contract the survay company would have with your bank.
As the bank is the bigger customer they will protect that ongoing relationship.
If they did a valuation survey and discovered something which should be disclosed to your Bank this could result in your bank reducing the loan amount. Your contract should be constructed to prevent them telling your Bank.

Weirdlynormal · 02/07/2022 12:18

The surveyor with the biggest vested interest is the one working for the mortgage company. If they are happy to lend, I’d not be worried. However the EA is still a cheeky wanker and THAT would get my back up. Not his place. Complain.

AliceMcK · 02/07/2022 12:47

What a croc. Our last house we had 3 surveys done. The bank one, our own more in depth one which resulted in the 3rd one which resulted in problems being found and us reducing the offer to cover the costs we’d need to spend to fix problems. I’d say there is something they don’t want you to find.

perfectstorm · 02/07/2022 12:56

Freestylem · 02/07/2022 11:55

The surveying company said having another valuation in addition to the mortgage lender's valuation would be a conflict of interest.

Show quote history

The surveying company must work for the estate agent, or the bank, then, on other purchases? I can't see any other way this can be a conflict of interest (the two surveyors aren't linked in the same ownership or anything?).

I'd instruct another surveyors, tbh. I would be deeply suspicious on why an estate agent is so determined to block you from a second valuation that they will go to these lengths.

SausagePourHomme · 02/07/2022 12:58

SolasAnla · 02/07/2022 12:10

First very important point.
Unless you have employed an Estate Agent to act as a house finder and negotiator for you and to look out for your financial interests the Estate Agent works for the Seller not you.

The Estate Agent has no business phoning someone you employ.

However the conflict of interest would likely be between your contract and the pre-existing contract the survay company would have with your bank.
As the bank is the bigger customer they will protect that ongoing relationship.
If they did a valuation survey and discovered something which should be disclosed to your Bank this could result in your bank reducing the loan amount. Your contract should be constructed to prevent them telling your Bank.

that doesn't sound right. the bank doesn't want to lend more for the house than it's worth - they have no desire for the price to seem artificially high. The bank won't have a problem with a valuer who works for them on other jobs giving a different valuation.

This estate agent has leaned on the valuer (with whom they have no business speaking) to decline your job. I'd be fucking pissed with them and with the valuation company who have given a poor, non-explanation here.

SausagePourHomme · 02/07/2022 13:01

come to think of it the only conflict of interest that makes sense is the estate agent saying to the valuers 'back off or we won't work with you again' because they suspect and fear a lower valuation and therefore a lower fee. I don't think they are acting legally.

Hadalifeonce · 02/07/2022 13:03

We had a survey outwith the valuation survey, which brought up a few minor items to be aware of, so we knew a few jobs would be needed soon after we moved in. Neither the lender of the EA were involved in employing our surveyor.

Mischance · 02/07/2022 13:09

The estate agents/solicitor/surveyor/valuer/lender network is a closed conspiracy round here. They all know each other and look out for their interests. I cannot imagine that a second valuation would be a cause for a conflict of interest, or why indeed the second valuer even needs to know that one has already been done. It all sounds a bit fishy to me.

My solicitor turned out to be the estate agent's wife - and very hopeless she was too.

SolasAnla · 02/07/2022 14:22

SausagePourHomme · 02/07/2022 12:58

that doesn't sound right. the bank doesn't want to lend more for the house than it's worth - they have no desire for the price to seem artificially high. The bank won't have a problem with a valuer who works for them on other jobs giving a different valuation.

This estate agent has leaned on the valuer (with whom they have no business speaking) to decline your job. I'd be fucking pissed with them and with the valuation company who have given a poor, non-explanation here.

Show quote history

Resale value has been agreed at £500k bu the first survay company. If the new surveyor values it at £450k the bank would only want to fund up to £450k, and would want to be informed of the lower valuation.

The Seller wants £500k, Op wants the house and is willing to pay £500k to live there and so would have to pay the extra 50k or walk away.

It would not be in the OPs best interest to inform the bank of the lower valuation, it would not be in the survey companies best interest to not communicate the lower valuation back to the bank.