Hi all
I have just had a property independently valued before making an offer on it. The valuation came in significantly higher than the real estate agent had valued it.
Despite my instructions to the contrary, the valuer, when shown around the property by the RE Agent, told the agent what he valued it at. Of course the agent will have told the vendor and the asking price will have gone up significantly.
We were going to put in an offer today in the range of what the agent originally thought the property was worth but of course now it will be rejected because the agent knows what the valuation has come in at.
Any suggestions about what I can do about this debacle?
Nasty situation… My first thoughts are to kill the valuer.
Maybe put in the offer anyway, although the vendor knows what the valuer has said does not mean they will change too much & might just be happy to take the money & run.
Good luck
Courage is not acting without fear but acting despite your fear.
hi linar
I would do two things.
first send a letter to the owner or managing director of the independant valuer company explaining what has happen and that you want them to send a letter to the real estate.
Stating that the valuer was working on your behalf and that any information by the valuer is propriortary information and is to be given to nobody without your written permission. Get them to ring you when this is done or you will be asking for legal assistance for break of contract( a contract between customer and agent confidenciality)
when they ring you, ring the agent tell them the same as above and then submit the offer.
The agent will only submit an offer when he receives it and in most cases won’t have told his client your valuers price.
It would be a problem for the owner of the real estate if he did tell the vendor the information make sure you stress this with not only the sales person but also the owner.
go play hard ball I have to everyday.
GOOD LUCKhere to help
Agree with Gross,
You requested the valuation, you paid for it, it’s your confidential info….not the real estate agent.
I would follow Gross’ course of action but I would get the ball rolling by phone first than follow up in writing.
Please keep us informed of your progress, good luck.
hrm
given that you have the REA valuation and the valuer’s valuation, if the REA refuses to agree to his own valuation you may have cause for action against the valuer. This should be politely pointed out to the head of the valuation firm. In the mean time, don’t change the offer you were going to make, but think of reasons for the land agent why your offer is justified – start with “The valuation gave me comfort, but I’m not relying on it”.
Remember that the aim of the agent is to sell a property. In todays market I think it unlikely he will tell his vendor to hold out for a higher price. Have a think about when the agent gets paid – if at all.
Agents have little respect for valuers and vice versa.
Cheers,
Simon Macks
Residential and Commercial Finance Broker[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Linar,
This exact scenario happened to us 18 months ago.
The bank sent a wet behind the ears valuer around (naturally escorted by the REA). The REA knew the bank was operating on our behalf. During the inspection the wily and shrewd REA managed to squeeze the final figure out of him.
The next Saturday afternoon during a home open the REA approached us and ‘quietly mentioned’ that our bank had valued the property at the vendor’s full asking price….After the wife and I picked ourselves up off the floor, we shrugged our shoulders and gave up.
Their slip up, if we had of proceeded, would have cost us over 50K. Instead, and solely based on this slip up, we walked away from the deal. The REA and vendor incurred a delay in selling the property of over 7 months. (A lose/lose situation if ever there was one).
In hindsight, it was a good thing, as we chased and secured another deal that yields triple what that house would have.
My two suggestions would be ;
1. Don’t pursue the valuers. All you’ll do is incur more time, expense and most importantly give yourself an ulcer. The principal would of dealt with complaints like this before and will be a master at batting away your grievance and avoiding any and all ‘slings and arrows’ that you may throw at him.
2. Walk away and find another outstanding – better deal.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Thanks for all your comments
I am getting a building inspection next week and you can bet your boots I’ll be walking through the property with the inspector – and the valuer on all future purchases!
I’ll keep you all up to date with how it goes.
K
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