‘Friend or Foe’, is a very important question to ask when purchasing a property in modern times. It is also an important thing to ask when meeting any person you meet in life who attempts to aid or help you in anyway.

This report looks at the differences and similarities, if any, between an estate agent and a surveyor.  Both forms of professionals, if you choose to see them in this way, are asked for advice on properties when purchasing. The question is how closely do they work? If they don’t what can you expect?

Fact - Based on Experience

I am a trainee assistant building surveyor at 1stAssociated.co.uk. I have come from a property management background. Through this article I have tried to show how closely related estate agents and surveyors are or how the two differ in their professions, and how this implicates you the customer buying the house; because when you buy a house what you want is an honest service, someone you can trust, who you pay for their professional services.

 Recent investigation has shown me some interesting facts I would like to highlight.

Recently in an article I read how reporters investigated the estate agency market and how big players operate. This highlighted some complaints in the buying market.

Over the top

A Notting Hill newly wed couple were said to have made an offer on a property over valued by sixty thousand pounds. When they purchased the property it was said that the agent explained, in order to push the sale through, that it was up to the seller to convince the surveyor that the property was worth that much, a process referred to as ‘simmering’. The higher average market price would have been set by an agent, who can do this in areas where there is a high rate of house moves. This means there is a high demand in the area for buying, and by selling with the aid of increased inflationary demand, the agent manages to fork up prices. A surveyor uses a more accurate measurement method to calculate costs. A quantity surveyor could do this exactly using mathematics. However one thing they will not do is try and fetch the best market price, rather they would look to set the correct lower price and justify why this is. At 1stAssociated.co.uk we look for 10-20 defects per survey before aiding you negotiate the price with the seller.

 A friend of a surveyor, or independent?

I was recently able to speak to a chartered surveyor who used to own estate agents for five years. What I found is that many agents differentiate themselves from competitors by highlighting that they are estate agents and surveyors. Have you ever seen that? Maybe a sign of quality. In fact it can be misleading, are they surveyors or agents? To have an in-house surveyor is more cost effective than using an independent surveyor. These agencies may well be owned by a bank or mortgage company who the surveyor works for. Or the surveyor could be working with the agent. Either way the surveyor works more closely and in a majority of cases helps pass the property sale through. This could be motivated by the mortgage sale or the hope of aiding the associate agent. Commission could have a big part to play as an incentive.

 I decided a while ago that I would rather be independent in my career; at 1stAssociated.co.uk I am pleased to say we are surveyors who work on our own rules with little interruption from third parties advising us on the sale.  We do not work for estate agents or banks. Our clientele has been found by an enquiry service of buyers online. Independent surveyors can find it hard to get on a panel of surveyors that a big agent uses. Recently in a Camden Town survey my senior had to pay half a million pounds just for insurance to get on a panel to survey the house. This was asked for by the mortgage building society that we were referred to by the agent. They made the whole process difficult, however my senior, motivated by aid for his client, paid the money and found in the end all he had to do was fill out a simple form with check boxes to get on the panel! This stringent application could be related to the fact that the word 'independence' usually means free to stand on your own; it actually means the surveyor is bound by no pressure to give a realistic impartial view of the property. This is one of the things that 1stAssociated.co.uk prides itself on. Some agents, it is fair to say, may be afraid of this. However we feel the client is more important.

Buyer vs. Seller - Who do we Value

In the investigation a reporter used a tape to record her findings and found in a team meeting how estate agents swapped exchanges of how proud they were to over value properties. The director of the company explained how his clients expected them ‘to go to war’. This describes the aggressive manner in which sales and commission is created to make a living. Since I have been on surveys I have found that every house is over valued and more so in affluent areas where the location is very popular and the buyer is blind to the internal defects the property may have.

At every survey we highlight 'the good', 'the bad, and 'the ugly' aspects of the property. If there are any 'ugly' points we sometimes have to recommend that the property is not purchased.  If we feel this is the case the senior chartered surveyor will explain this to you at the survey if you have attended or by phone after the survey has been carried out. In our case we go to war for you the buyer, not for the seller!

The Glamourous Life

 In estate agency there is ‘no cap to what you earn’. The better agent you work for in a better location it seems the better salaries and commission you can make. It is not surprising that the demand and prices are so high here that first time buyers or city workers complain that they cannot afford to get on the ladder. Why do the sellers and agents do this? It is understandable considering the pressures and the culture they are faced with.

 I spoke to a good friend of mine who works for a leading estate agent in London.  I actively asked how he was motivated everyday and he explained 'a champagne lifestyle' and 'the more you sell the more you will receive from the company'.  They are encouraged to work longer hours and compete against each other even though they socialise together.  Phone calls are tracked and viewing activities are monitored. The fact is if you are not in the company driven to make more you will not succeed. In some cases because vendors are not present or impossible to get hold of to clinch a deal, signatures have been forged. Many Agents are young; an agent who I used to work with at Notting Hill Gate mentioned how he was too old at forty and needed to look sexier to be able to work at the better agent across the road!  Staff turnovers are high. One of the reasons why I am training to work as a surveyor is because I can work set hours and the surveyor I work with has been working in the property market for a long time. I could not trust any agent in buying a property over him and his expert advice. He handles the process at a mature level. Surveyors, of course, are motivated to make a living, but we are paid on just the specialist advice we give, this needs to be honest and impartial and no salary is commissioned.

 Honest Tricks of the Trade!

Apart from over hiking the prices of properties, some estate agents have found it in their interests to try and get less for a property. It was recently highlighted how property developers for a small fee could pay an agent to work around negotiating a deal with £50,000 off the asking price. An old age pensioner would be cheated out of several pounds!  Maybe their property was worth more.  At 1stAssociated.co.uk we would inspect the property and be very surprised if an estate agent attends. This is because the agents have the choice to their own surveyors which they could advise the buyer to use The buyer would be happy with the incentive provided by the agent.