Posts Tagged ‘Purchaser’

I will be brief:

Please study this web-site: I am a heavyweight Residential Property professional and I need help NOW. Can you help me?

My contacts and web-site generate a large number of requests for help. Often this is for free advice but I do not mind as the goodwill generated is massive and such people often then recommend me to others who do become clients of the fee earning type.

This volume of referrals means that have need a National Network of similar Surveyor/Valuers. Members of experience and professionalism who have very higher standards of customer care.

I am looking to one or two Surveyor/Valuers in each County and perhaps several in London and the bigger Cities.

Fairly minor start-up costs will be required (to be agreed, to agree service level standards and uniform documentation etc…) and then PROinspect would take a commission for anything you can take on (it would be your choice).

At this early stage I have no further written details.

If I am striking a cord with you and you can see the sense in what this opportunity offers then e-mail me in the first instance and I wil then call you to discuss.

Typical tasks would include —–

1. Seller and Purchaser Surveys
2. Market Valuations
3. Divorce Valuations
4. Specific Defect Reports
5. Expert Witness Reports
6. General Consultancy Services.

E-mail me at stuart@proinspect.co.uk

Buying a home is already clouded with obstacles so why do we put up with additional hurdles introduced by some Lenders? This article outlines just one way the paying customer can be placed second to corporate practices that serve to mystify what should be a simple process.

I was speaking to a loan valuer recently and he mentioned a bizarre situation that cost a purchaser many hundreds of pounds in fee costs.

The Valuer (Bob) was sent a property loan valuation instruction on a Victorian house in the south of England. On inspection Bob noted that the rear kitchen/bathroom wing of the building was constructed in half-brick form, common for the period in that district. Technically this part of the home was below habitable standard notwithstanding these walls had been weather-proofed externally and set internally with a dense render. The ratio of sub-standard wall to cavity full-standard walling was about 20 per cent.

Bob prepared his report in accordance with that Loan Company’s Valuers Manual and they accepted it and offered the client purchaser loan finance accordingly.

Unbeknown to Bob as his report was being considered the client purchaser decided to change lenders for a better interest rate just announced by Company B. Ten days later Bob received, by pure chance, the instruction to value the same home again.

Bob prepared another report. However, this second report was very different from his previous report. The second report simply said that the home did not comply with that Loan Company Valuers Manual criteria and was declined as being acceptable security. In other words no loan could be offered.

The reason behind this change in adequacy of security was stated as being that the wall construction was sub-standard and the Loan Company did not lend on sub-standard forms of construction.

Bob had been paid £400 in total for his two inspections. The client had paid over £700 in total mortgage application fees. Estate Agents in the property chain were many thousands of pounds out of pocket on lost commission charges. The rippled effect caused these individuals, and many others, massive loss of revenue, waste of time and effort plus related stress and disappointment.

Who was to blame for this bizarre situation?

It may be unconventional but I believe it is the Loan Companies en-mass. The Council of Mortgage Lenders, the body that regulates loan lending, considers allowing individual companies the right to have differing lending criteria is satisfactory even if the public are not told these vital policies.

I am sure each Lender is, in the small print somewhere, under a duty to publish their leading criteria and so “it is not their fault that customers choose not to read lending terms given to them”.

So what can be done about this bizarre situation?

This is the easy bit but is something that seems to always be talked about but never completed.

How about we properly regulate Estate Agents including the introduction of standard examinations upon a syllabus that includes construction recognition and general property compliance issues to Lenders Valuer Manual criteria. OR…….

The Council of Mortgage Lenders should be granted the power to issue only one set of lending criteria to all Valuers on behalf of all Lenders.

Any system, as is currently in place, that throws the emphasis on to a non-trained ordinary member of the public to decide matters of technicality of construction, is fundamentally flawed and unfair.

I believe the Office of Fair Trading are failing in their duty to provide effective monitoring and regulation in a marketplace that is well known for its protectionist and monopolistic tendencies that operate against the best interests of the consumer.

I also believe the Royal Institution of Chartered Surveyors has too long buried its head in red-tape to accept the real challenges before it: why have they not recognised this simple fundamental market flaw that places their membership is a rather strange relationship with the end client, the home buyer.

By the way — if the Home Information Pack scheme had had a Sellers Survey (like the system that currently operates in Scotland) included then none of this nonsense would be possible. Oh well, we cannot expect too much from weak Government and less than fully impartial market Regulators, can we?

Surveyors get told to do all sorts of things and at all sorts of times but do you know the options available to you? Do you know how to get the best out of a Surveyor? Do you know when it might be best to speak to a Surveyor?

Everybody seems to think differently when it comes to what to expect of a House Surveyor. Here I outline what I think you might need to know for the most common case scenarios.

1. Thinking of Selling? One option is to consider placing a Home Condition Report (HCR) within the Home Information Pack (HIP) on your home. The same Surveyor could also complete the Energy Performance Certificate (EPC). The HCR is something a potential purchaser, and the Mortgage Valuer/Company, can rely upon and sue the Surveyor if it is negligent. You may think a HCR is a good idea if you wanted to prove your home was in good condition OR if it had serious problems and you wanted to define those problems so bidders did not make over-cautious purchase bids to you.
2. If you own a home that is “System Built” (or is registered under the Defective Premises Act 1972) again you may wish to consider the benefit of a Sellers Survey (HCR) to attempt to remove some of the stigma that can attach to such homes.
3. If you are considering buying a home at Auction you have a greater number of survey options. On the one-hand you don’t want to waste too much money and so you might wish to consider simply asking a Surveyor to walk around the home with you to discuss what he is seeing and to verify no major defects exist. Such a “look around” is not a proper survey but provided you can accept that the Surveyor will not produce a written report and cannot accept any liability for such a restricted inspection then you are on track to buy that bargain and have reduced your risks considerably. Alternatively, you could ask a Surveyor to produce a R.I.C.S. Homebuyers Report (that includes a Valuation opinion).
4. Buying any type or size of Home – remember you always have the option to ask a Surveyor to take an informal look around for you (often with you so you can ask questions etc…). This may be termed a pre-survey meeting at the premises. PROinspect have 15 inspections products and so we can cover nearly every customers request for surveys.
5. Buying a fairly simple, modern home – The most popular survey product in the UK is the R.I.C.S. Homebuyer Report (2010 version) – termed the HOMEBUYER REPORT (HBR). This is a product designed by the Royal Institution of Chartered Surveyors (RICS) and is the middle-tier product designed to be brief but factual. It includes a proper site inspection, survey report on condition, market valuation and an estimate of the Rebuild Cost of the building for insurance purposes. The HBR is termed a Level 2 survey product.
6. Buying a larger, expensive or Period home, perhaps in a Conservation Area or one that is Listed – Your options are a Level 2 survey product such as the Homebuyer Report (if the Surveyor thinks this is wise) or a full Building Survey with or without Market Valuation and/or Rebuild Cost assessment. A Building Survey is a top-of-the-range product and I add a word of caution- (1) only experienced surveyors should be completing such products and (2) many products exist that look like Building Surveys but are not. MAKE SURE your Surveyor comes recommended and that you have spoken to the Surveyor – one to one – before you proceed so you can get some idea of his Professionalism and general attitude.

The Golden Rules are –

• Instruct a Surveyor when your solicitor gives the OK after your loan valuation has been completed and your mortgage finance is verified (not simply offered, subject to terms).
• Always speak to the Surveyor who is to inspect your new home: do not be palmed off with only speaking to a secretary, junior assistant or office manager.
• Ask for a survey product recommendation AFTER you have provided full details of the property you are buying (age, price, number of bedrooms, address, etc…).
• Make sure your Surveyor is locally based, knows of the property construction type and is generally experienced both professionally and locally.
• Make sure you will be able to speak directly with your Surveyor after he has delivered your Report.

If your home/property is in southern England I invite you to call me to discuss your exact needs. Stuart Parrett +44 (0)1489 896 174.

Firstly, let’s dispel a myth: if you ask an Estate Agent to give you a Valuation what do you get? They call them a Free Market Appraisal and some might not put that opinion in writing. Why? Because what you get is simply an opinion: it is not a professionally binding opinion and liability does not stem from that opinion (you cannot sue them).

Secondly, let’s dispel another myth: if you request a Loan Company mortgage Valuation what do you get? One – the valuation is prepared for loan purposes and the sum quoted may be lower than market value for in-house Loan Company reasons unrelated to your needs. Two – if you are buying a brand New Home the chances are that in this post-recession world the loan company will have instructed their Panel Valuer to down-value your purchase because the security offered (the new home) is in its re-sale value when it is not “new”.

Football in the sun: before the rain.

Valuations can be needed for Court purposes eg: divorce settlements, Probate and Capital Gains tax purposes, Tax Planning purposes, to advise of whether alterations may be wise and economic, for sale or purchase etc……. The circumstances that surround the request may lead us to consider other market and property aspects that alter our opinions of worth.

So, what is the definition of market value?

The only way to get a professional opinion of value, one where you can sue the Valuer if he/she is wrong, is if you request that report yourself. The wise purchaser does this via either a request for a private valuation or asks for a private survey that includes an opinion of market value. The most popular form of survey product can fits this description is the R.I.C.S. Homebuyer Report (for details see elsewhere on this site).

PROinspect can provide Market Valuations. We would need to inspect the property and complete market research, including a analysis of price-paid data (that is historic) and take into consideration the market and the property.

Why would you need a professional opinion of value? This depends on why you need advice and whether you agree that independent opinion is of worth. Some might say that a Loan Company valuer can provide an impartial opinion – conversely, the credit-crunch has told us that millions of mortgagees are out of pocket because of the Banks and of home buyers had taken advice from professionals outside of the Estate Agency and Loan Company then perhaps the hole they are now in wouldn’t have been so deep.

If you believe that a Sellers’ Estate Agent and your own Loan Company place your best interests over their own then you do not need PROinspect.

If you don’t believe this then use the CONTACT FORM to ask for help and advice once you believe the time is right for you. Initial advice is free so what have you got to lose?

NEED ADVICE?

Try the SEARCH Box facility (below, left), click on an Article Heading (below, left) or simply read on….

• BUILDING SURVEYS with or without VALUATION advice
• HOME VALUATIONS by an RICS Registered Valuer
  
• HOMEBUYER REPORTS or SELLER SURVEYS
• AUCTION or QUICK-WALK-THROUGH Appraisals
  
• Update your BUILDING INSURANCE SUM INSURED
• Is DAMP REALLY DAMP or actually CONDENSATION as a result of your lifestyle?
• Is that CRACK the beginnings of SUBSIDENCE?
• Divorce or Negligence Court-Compliant EXPERT WITNESS Reports/Valuations.

Hello, I’m Stuart Parrett. I am a truly independent, knowledgeable and experienced Chartered Surveyor and housing specialist. I am in the PEOPLE and HOMES Business where Information Discovery is all important.

I survey homes for faults and worth/value but it is not what I do but HOW that separates PROinspect from competitor surveyors.

THE HOUSE DOCTOR IS IN:

HOW CAN I HELP YOU?

SOMETHING of VALUE for you —-

1-  Do you have a SEPTIC TANK DRAINAGE system?

NEW Environmental Permitting Regulations cover even old septic tanks, which may previously have escaped regulation, but are now controlled and must be formally registered with the Environment Agency by 1^st January 2012. Failure to register is a criminal offense. Click this link PrivateDrainageChanges2012 for an Environment Agency Brochure that explains all.

2-  CONDENSATION SEASON IS UPON US – have you looked in the back of the wardrobe recently or in “that corner”?

Cold = drop in dew point = cold surfaces will attract condensate: Quick Fix – create airflows and reduce the amount of vapour in the air. Longer Term Fix = Raise the wall temperature by lining it with XXXX; properly kill off mould spores; introduce sensors that apply venting or temperature changes to the environment. Simple.

What often works is opening the window for as long as possible during and after sleeping/baths/showers/cooking (this removes water vapour that then cannot condense on your clothes and walls). You loose heat during this process and so you need to learn how to achieve these goals intelligently without icicles forming on your nose.

For more information on me, my CV etc… – click here and scroll down. Alternatively, look me in the eye by watching a short VIDEO – CLICK HERE. TheHouseSurveyor at YouTube will also deliver several important messages for those looking to purchase or those you wish to become Residential Surveyors and/or Valuers.

Those who have kindly provided testimonials for me say that I can be considered a safe pair of hands, somebody who is a real communicator and a provider of detailed and robust opinions.

Good reasons for using me in the central south coast area include that I take the time to listen to you and then help you make the right choice of survey product and have it completed at the right time. After this I genuinely communicate with you and don’t simply mail a report to you and that is it. No, I am always available for questions and meetings because you need to be re-assured your purchase is both a wise investment and you are not buying a problem.

I protect the biggest investment you’ll ever make in your life – your home – and I work with you every step of the way…..

I’ve brought together a lot of valuable information to help you organise property problems, alterations, private surveys and other services surrounding ownership, maintenance, sales, purchases and Expert Witness Reports.

CALL ME for a free chat and advice on 078 3636 3040 —

• THE GOLDEN RULES OF SELF-PROTECTION DURING HOME BUYING =

1. When your “offer” has been accepted make sure you already have a loan deal secured in principle
2. Make sure you DO NOT agree to a combined Loan Valuation and Private Survey
3. Actually speak to a Surveyor (PROinspect down south) – do not accept an Assistant or a Secretary
4. Find out your Survey Product options, fee costs and the manner in dealing with any special concerns you have
5. Do not fall for quick deals or “linked” services often packaged by costly middlemen Agencies.

STUART PARRETT

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Browse the site and when you’re ready to ask for advice give me a call or fill in the Form on the right. To get the best out of us you need to be briefed as to your options, survey costs and a lot more. As a starting point be as specific as you can as to what you need from us – use the CONTACT FORM (top right on your screen): EG: Detached house – perhaps 50 years old – £400,000 agreed – Building Survey with Valuation needed – being sold by XXX Estate Agents.

PROinspect are led by Stuart Parrett who has an unrivalled pedigree as a specialist Home Surveyor of over 35 years Hampshire experience.

If you wish to read even more of my views on a host of house and survey matters go to ezinearticles.com by clicking of the above icon. Or follow me at Twitter (@SurveyAuthority).

ARCHIVE ARTICLE from late 2008

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Should You Disclose Hidden House Defects OR Is Ignorance Bliss?

“Let the Buyer Beware” is an established legal principal in our beloved Country but, in some circumstances, this is a minefield and you may best declare defects to intending purchasers.

It’s illegal for a home seller to knowingly conceal major defects. If you are unsure about whether you need to say something or not, speak to your Solicitor BEFORE you contact your Estate Agent or begin marketing.

If you are a purchaser we at PROinspect suggest you ask the Sellers specific questions – not “is anything wrong with xxxxxx” but instead something like – “The cracks to the rear wall – are these recent, have you informed your Insurers, are these getting worst or are they of a long-standing nature, how long have they been there?”

Generally, you’re responsible only for serious defects you knew about or should have known about. Therefore, it’s a good idea to have your home inspected prior to putting it on the market to figure out what needs to be repaired or replaced. But, when was the last time you knew of somebody who actually did such a thing (except for perhaps redecoration and minor issues)?

However, if you are convinced that selective repairs could cause a greater return on money spent then commission your own Surveyor to tell you what repairs are necessary and what improvements will increase the selling price. Often the good Estate Agent could tell you these secrets!

Don’t be fooled into thinking that every penny you spend will give you back two pence – often, unless you do only the right things, your spend will not affect value at all and therefore taking professional advice is a must!.

While it’s always best to disclose serious defects, it would be wise to disclose the following problems to the buyer: these are “in use” issues that perhaps would only come to light once a person starts living in your home (as opposed to matters that should surface during a Surveyor inspection):-

• Plumbing and sewage issues
• Water leakage of any type, including in basements
• Termites (rare in the UK) or other insect infestations
• Heating or air conditioning system issues
• Property drainage problems
• Foundation instabilities and/or claim history
• Problems with title to the property
• Neighbour issues that aren’t obvious (including Party Wall Act notifications/awards)
• Lead paint, asbestos, hazardous glazing, radon gas, etc……
• Homes registered under the Defective Premises Act (usually “system built” Homes).

If you disclose a defect and the buyer decides to purchase the home anyway, the seller isn’t then responsible for the consequences. A seller who doesn’t disclose known serious defects can be sued by the buyer after the defect is discovered. The seller may then be responsible for the costs of repairs and other damages resulting from the undisclosed defect.

A seller may also be ordered to take the property back if a judge “rescinds” (invalidates) the sale because the seller didn’t disclose defects. You can also be held responsible for the buyer’s claim/court/purchase costs and fees.

If the Courts decide you have been fraudulent, you may also have to pay “punitive damages” that can be very high.

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The case for buying Non-New Homes: New Home Defects Cost £30m a year!

Although many homebuyers readily pay a hefty premium for a new home to avoid the hassle of renovation when they move in, it is costing £30m a year to put right defects discovered in the first ten years after the completion of a new home.

This figure, the highest in the last few years, emerges in a report from the National House-Building Council (NHBC) which supplies the ten year warranty on the great majority of UK new homes.

Of £30m paid out in 2003-4, NHBC says £11m covered claims made within two years of moving in, while £18.3m went to owners of homes between three and ten years old. The figures appear at a sensitive time – for builders have come under fire in recent TV consumer reports for their failure to maintain building standards, or to correct defects fast enough when buyers complain.

In theory, builders should correct most defects found early on. NHBC tends to get involved when problems are longer term, or when agreement cannot be reached with a customer.

If your new home hits big trouble, there’s a one in two chance the problem is underground. Nearly half the money paid out – 49% – went on repairs to foundations, substructure and underground drains. Around 30% was needed to put right load bearing walls and floors, while 9% – about £2.7m – went on roof repairs.

NHBC also reveals that in 2003-4 a total 29 complaints went to independent arbitration and 34 were reviewed by the Financial Ombudsman Service. Of those 34 cases, the NHBC won 23 with five partially in its favour, while three were won by the complainer and in three cases a settlement was agreed.

In the last five years, the highest previous annual payout was £28m. NHBC, holding insurance reserves of £1.24 billion to cover 1.6 million homes currently protected by warranty, says complaints are “taken very seriously”.

Critics of the NHBC warranty have claimed for years it fails to protect homebuyers against building botch-ups.

But the soaring cost of putting things right comes despite the fact NHBC has 330 inspectors across the country making a total of more than one million site inspections every year.

NHBC itself thinks the weather could be partly to blame. In a statement, it said: “New homes are one of the few remaining hand built products, made up of thousands of elements and constructed outdoors in all weathers. Where a problem does occur and NHBC is involved, NHBC’s 10-year Buildmark warranty is in place to protect the homeowner and ensure the work is carried out”.

The amount NHBC paid out in claims each year should be viewed in context of the number of new homes we cover. NHBC Buildmark currently covers over 1.6m new homes – so £30m paid out last year in claims relates to over £256bn worth of property.

But there are risks the repair problem on new homes could worsen before they get better – for two reasons:-

Firstly, Government policy increasingly obliges builders to re-use “brown” land in urban centres – where risks of foundation problems are higher, depending on what was there before.

Secondly, the fear that builders face a savage squeeze on margins as house prices fall. The suspicion is that Builders can only restore profit margins by hacking back costs. That could be tricky to square with customer demands for higher quality.

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So what is PVCu?

The ‘PVC’ part of it stands for Polyvinyl Chloride. The ‘U’ stands for Un-plasticised, often wrongly called Un-modified. The terms PVCu, uPVC, PVC-U, and PVCU all essentially refer to the same product (European harminisation means most Countries now use the letters PVCu).

Poly Vinyl Chloride, which we know as everyday ‘PVC’ is modified, i.e. softened and can then be used in the manufacture of products such as hand bags, sport bags, shoes and fake leather. It is the use of this material which has made us familiar with the abbreviation ‘PVC’.

Pure PVC-U is not quite suitable for window and door profiles. A small amount of stabilisers and additives are required, the mix of which may vary slightly between different manufacturers of profiles for window and door systems, and is necessary to provide longevity, high weather and UV resistance, and also to achieve a brilliant white colour.

The basic material properties of PVCu make it ideal for window, door Conservatory applications: such properties being:-

• Does not rot or biologically decompose.
• Resistant to weathering with low maintenance requirements.
• Is tough on impact.
• Retains its shape within normal climatic temperatures.
• Fairly good insulation performance.
• Can be stiffened by interior insertion of aluminium or steel reinforcement.
• Can be reshaped at very high temperature and can therefore be recycled.
• Factory fabrication means high on-site installation speed.

PVCu lacks authenticity when it comes to the more traditional designs and note that it is not acceptable to Planning Authorities for use in Listed Buildings, and is not popular with them in Conservation Areas (it could be a criminal offence to replace say softwood windows with pvcu windows in a Listed Building!).

In a low Carbon footprint world many home-owners are now using traditional, but sustainable hardwoods instead of such synthetic materials.

ARCHIVE ARTICLE from OCT 2008

Planning a change without Planning?

October 2008 is the right time!

October 2008 is to herald many changes this year. You and your clients may need to revise action plans to reflect these alterations to the current status quo……..

Planning policies have been relaxed (see below) and all Residential Lettings will require an EPC. However, also all those homes still on the market for sale, but which did not qualify for EPCs, require an EPC. The seller will be under a duty to deliver to the purchaser a valid EPC before Exchange of Contracts. Do you and your clients know this?

The Planning change is that various forms of development will not require any Planning Consent:-

Extensions?

All single or two storey side or rear elevation extensions, up to 3.05m (10 feet) deep, are now exempt. Building Control Consent may be needed and, by the way, don’t upset the neighbours and you may need Party Wall Act notifications to those neighbours.

Loft Conversions?

Also loft conversions are affected. From October these will not need Planning Permission if they are less than 40 cubic metres (1,412 cubic feet) in volume in terrace homes, or 50 cubic metres (1,766 cubic feet) for detached and semi-detached homes.

Don’t forget that headroom height will need to be at least 2.3m to be a habitable room – this is an important consideration when it comes to maintaining or creating additional value in your home.

Driveways?

Another Planning change affects pavings. No permission will be needed to lay a driveway over 5m long, as long as it is laid with porous material such as gravel, permeable concrete block of porous asphalt. Before we all rush off to hard-surface that side/front area of land please consider water drainage and whether planning permission would be needed to create an access onto a highway.

Miscellaneous – freed from the need for Planning Permission:-

• Solar Panels (roof mounted or free standing).
• Replacing or maintaining a garage.
• Fences, walls and gates (under 1m high by a road and 2m elsewhere).
• Porches with a floor area of less than 3 sq. m.