Mrs Bear Posted April 8, 2016 Share Posted April 8, 2016 In today's Times 'ask the expert', someone says they put their flat on the market last year with an AP of £600K, as advised by the EA. On the strength of which, they bought a newbuild with a bridging loan. Now they find that the AP was 'wildly optimistic' and they are now in financial doo-doo. Do they have any redress against e EA for getting the AP wrong? Answer: that would depend on showing that the AP was not what a reasonably competent EA would suggest. Quotes a case won, where AP was £100K but sold for £36k after 3 years, leaving seller effectively bankrupt after taking on a bridging loan. Would not imagine such an extreme case would give much comfort. Quote Link to comment Share on other sites More sharing options...
thewig Posted April 8, 2016 Share Posted April 8, 2016 If the house price goes up its all down to ME. if it goes down then WAAAAHHH WAHHH WAHHH I WANT MY MUMMY Quote Link to comment Share on other sites More sharing options...
“Nasty Piece of work” Posted April 8, 2016 Share Posted April 8, 2016 That has made my week, combine greed (Dave?) with an EA "buying" an instruction. Quote Link to comment Share on other sites More sharing options...
stuckin2up2down Posted April 8, 2016 Share Posted April 8, 2016 That's ridiculous that the other case won. I don't see how they can have any comeuppance against an estate agent, they are not a profession with any qualifications or standards. Quote Link to comment Share on other sites More sharing options...
Motor_Blade Posted April 8, 2016 Share Posted April 8, 2016 So in other words they borrowed against the value of a sale they hadn't made? Cracking idea, what could possibly go wrong?????? Some people are just plain stupid & deserve to lose their shirts. Caveat venditor as the Romans would have put it (assuming my memory of Latin is right....) - let the seller beware.... Quote Link to comment Share on other sites More sharing options...
Hullabaloo82 Posted April 8, 2016 Share Posted April 8, 2016 Funnily enough I have a strange feeling a lot of people are about to find out their estate agent has been wildly optimistic with their valuations, myself included sadly. Quote Link to comment Share on other sites More sharing options...
Byron Posted April 8, 2016 Share Posted April 8, 2016 Probably explains many of the 'accidental' Landlords. Quote Link to comment Share on other sites More sharing options...
janch Posted April 8, 2016 Share Posted April 8, 2016 I had 3 quotes from different agents once for the same house at wildly different valuations ranging from £210 to £275. It can take years to sell a house too so anyone taking a bridging loan on the strength of an EA valuation must need their head examined Quote Link to comment Share on other sites More sharing options...
dgul Posted April 8, 2016 Share Posted April 8, 2016 The problem is the staggering numbers involved. If you borrowed 12 month's salary on a bridging loan, on the presumption that you could sell your current place at 4x earnings, but it turns out it was 3x earnings, then you could probably survive. The other thing is bridging loans are short term money - if they had kept their current place and had had it valued as part of MEW to cover the purchase cost - again, not too silly (a bit silly, but not crazy). Or if they had a cast iron purchaser but the sale hadn't gone through yet - fine (ish). But these people have been playing a speculative game with big money - that really is crazy. Quote Link to comment Share on other sites More sharing options...
Venger Posted April 8, 2016 Share Posted April 8, 2016 A friend met an EA the other day, who also is part of the lettings part. Was of the mind there will be fewer BTLers buying from this point.Also said if an owner/seller hasn't had any interest/viewers in the first 7 days of listing, 'then the price is too high'.EAs differing on value since beginning of Bubble 1.0. (1997) - now can do the same downwards imo - cascade it.We are the system. Buyers are a major part of what sets values in an active market. I have been on this site a long time and I believe in what's discussed here. Unfortunately I have decided to buy and I am in the final phases of purchase! I am very annoyed at the stupid price I had to offer to beat the competition. Oh well! Quote Link to comment Share on other sites More sharing options...
Venger Posted April 8, 2016 Share Posted April 8, 2016 Nearly forgot; a contact also met with a conveyancing solicitor who was exhausted with the volume of work in the run up to 1st April. A few law firms had exactly the same. http://www.edgemagazine.org/desperate-landlords-keen-to-beat-last-fridays-deadline-for-new-stamp-duty-rates-has-seen-business-soar-for-coventrys-largest-law-firm.html Buyers got what they wanted. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted April 8, 2016 Share Posted April 8, 2016 So if they had sold the property for 750k would they want to sue for undervaluing the price? Asking price is a guess what it might fetch. Surely you would do your own research and find out what others are fetching? Quote Link to comment Share on other sites More sharing options...
spunko2010 Posted April 8, 2016 Share Posted April 8, 2016 "surely you would do your own research" you say. Hahaha. Quote Link to comment Share on other sites More sharing options...
Mrs Bear Posted April 8, 2016 Author Share Posted April 8, 2016 So if they had sold the property for 750k would they want to sue for undervaluing the price? Asking price is a guess what it might fetch. Surely you would do your own research and find out what others are fetching? Leaving aside sellers who are very naive and clueless (perhaps very elderly downsizers who don't do Internet) I would think virtually everybody hoping to sell would have a pretty good idea of what their property could fetch - most people have a good old nose on nethouseprices etc. - don't they? - to see what neighbour's' places have actually sold for. Should imagine this was a case of wanting to believe the highest valuation - and perhaps not realising that EAs do give unrealistic valuations in order to get the business. Though I'd have thought most people would also be aware of that now. When we were selling my mother's house for care home fees, one of the EAs gave my brother 3 valuations: one, could take several months, two: should sell in 3 months, three: I'll sell it in a week. Brother went for option 3, and it did. Quote Link to comment Share on other sites More sharing options...
SimonSays Posted April 8, 2016 Share Posted April 8, 2016 I would think virtually everybody hoping to sell would have a pretty good idea of what their property could fetch - most people have a good old nose on nethouseprices etc. - don't they? - to see what neighbour's' places have actually sold for. Most people are staggeringly stupid. It is astounding. Absolutely mind numbingly idiotic. You give them too much credit. As did the banks. Quote Link to comment Share on other sites More sharing options...
nome Posted April 8, 2016 Share Posted April 8, 2016 Most people are staggeringly stupid. It is astounding. Absolutely mind numbingly idiotic. You give them too much credit. As did the banks. I wouldn't say it's down to stupidity, it's just pure unadulterated greed that makes people pay no attention what so ever to what other comparable properties have recently sold for and instead just pluck deluded fantasy figures out of the air for what they think their property is worth. Getting back to the o.p. ... what a ray of light in such a bleak and unjust world where, presently at least, the feckless debt junkies, speculators and spivs are well and truly winning. Quote Link to comment Share on other sites More sharing options...
Stainless Sam Posted April 9, 2016 Share Posted April 9, 2016 Anyone who takes on a bridging loan without a firm, time limited deal to provide an endpoint might as we bend down and kiss thier family tackle goodbye. They didn't ought to be allowed to breed. . Quote Link to comment Share on other sites More sharing options...
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