Monday, May 23, 2011

Subsidence

Housing market hit by rise in writs against surveyors

The foundations of the housing market are being chipped away at by a flood of disputes between mortgage lenders and surveyors being fought out in the High Court.

Posted by dill @ 07:05 AM (4422 views)
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5 thoughts on “Subsidence

  • Surveyors, it’s now high time to do your bit.

    Go forth.

    I love a cat fight when the chips are down.

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  • just like the 90’s….resulting in surveyors down valuing property..i.e being over cautious…starting a spiral and prices fall

    god knows what else will be revealed as the market unravells

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  • mark wadsworth says:

    Yeah! It’ll be like the 1990s all over again. Buyers will sue banks who hired the surveyors, the banks will sue the surveyors, prices will fall, banks will sue the buyers for overstating income and for repossessions and everybody will end up suing everybody else (brokers, estate agents, yadda yadda).

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  • Too many surveyors had a direct or indirect interest in over-valuing properties, which probably made a significant contribution to the rise in property prices.

    But now the pendulum is set to swing the other way.

    The banks are a bit sore over losing the PPI battle, and will have absolutely no sympathy for the surveyors’ dodgy little earner; so I expect every repo’ will now be assessed for potential litigation..

    Aside from the costs and insurance, no surveyor wants a malpractice writ hanging over him – no-one likes having to go to court to prove their competance.

    So what’s a surveyor going to do today when asked to value a house?

    – Make an informed professional judgement – and then knock off a bit…

    So Mr & Ms X see a house they like, are happy with the price, and trot off to a mortgage provider, who then asks for a survey.

    Survey valuation comes back at 10% less than they were ready to pay, so they go back to the vendor and say: ‘very sorry, but you’ve got to drop your asking price, or we can’t get a mortgage’

    So the very same factor that served to propel prices forward in the past, might now serve to push them down again..

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  • mark wadsworth says:

    Uncle Tom, indeed, that is what any sensible surveyor is now doing – but some of them still have to atone for past sins!

    The fun bit will be when the over-optimistic vendors start suing valuers for cutting into to their hoped for windfall gains.

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