Why Would Financial Advisers Recommend Not

Having A Survey?

If you would like a chartered building surveyor or a building engineer to phone you back and discuss financial advisers, surveys, building surveys, structural reports/engineers reports/specific defects report, structural surveys, home buyers reports or any other property matters please do not hesitate to phone us on 0800 298 5424.

Financial adviser advised them not to have a survey

We have just completed a survey where the purchasers advise that they were so pleased they had had an independent survey despite the financial adviser recommending they didn't need a survey. At first we couldn't understand this comment and why the financial adviser would be advising his clients on surveying matters, after all they are buying a property so surely they need to know what condition it is in. However, having thought about it, it may be that the financial adviser would only earn their commission if a sale proceeds and if a survey is carried out it may highlight some problem of the property that would lead to a sale not proceeding (for the very same reason we rarely get recommendations from estate agents either).

What is advice and what are sales?

This brings up an interesting question as to when are advisers selling and when are advisers advising? In some industries it is clear cut, such as the chartered surveying and the solicitor, where a fixed fee is paid regardless of what the outcome is, as the chartered surveyor or solicitor is being paid for their time and information is therefore valued and paid for.

It is very different for a person who relies on financial incentives and bonuses, such as financial advisers and estate agents. It should always be remembered who is paying their wages and whom they are really working for, of course an estate agent is working for the person selling the property. It is perhaps sometimes less obvious who a financial adviser is working for.

Let me just say that again!

We really feel it needs reiterating. Estate agents and financial advisers work for commission. In the case of estate agents we are aware that they generally get a very small basic salary and very large commissions. They get commission from the people selling the house, not the people buying the house, therefore it is essential to remember that estate agents are working for the seller of the house. No matter how often you see your estate agent and how often he comes across as being professional and friendly he is, at the end of the day, earning his fee from the people of the house he sells. No matter how nice and kind he is to you and how much “advice” he offers you he won't gain a fee unless he sells the house. Therefore the pressure is on him to sell it.

Is your financial adviser really independent and is he really advising you on your finances or his finances?!

In our opinion the only time a financial adviser is independent is when you pay them for the time they take to advise you and they fully disclose what commissions they get, both initially and in the long term for recommending the financial product. Once you can understand that they are paid based on commission you will understand the value of their advice, and why some of their advice is based on ensuring they get an outcome of a sale of a property and therefore get their commission.

Financial advisers, known as financial brokers in America

We have recently listened to a few books on tape. One of them advised (and it was American) that the reason the financial brokers (known in Britain as financial advisers) are called financial brokers is because they make you broker, and this did make us smile!

There is no such thing as a free meal

It is worth considering next time you are given advice that is “free” just why it is free, or if there is an alternative motive for giving the advice. We would also recommend that if you pay for advice that you listen carefully and ask lots of questions!

And finally an advert

Finally, an advert for chartered surveyors. We are more than happy to advise you on your property matters and meet you at the property and discuss them in detail. We will of course want our fee for this advice!

You may find these articles of interest:

Independant Financial Advisors pt1

Independant Financial Advisors pt2

Estate Agents

Mortgage Valuations

Mortgages Aren't they interesting?

Valuation

Valuation the same, Snap


What Is An Independent Survey?

Independent Financial Advisers - Are they Independent?

Please contact us for help and advice on financial advisers, surveys, building surveys, structural reports/engineers reports/specific defects report, structural surveys, home buyers reports or any other property matters on 0800 298 5424 and a chartered surveyor will ring you back to discuss this further. Please note we are independent chartered surveyors.

If you would like Dilaps Help then please visit our www.DilapsHelp.com website and for Disputes go to our Disputes Help site www.DisputesHelp.com .

We hope you found the article of use and if you have any experiences that you feel should be added to this article that would benefit others, or you feel that some of the information that we have put is wrong then please do not hesitate to contact us (we are only human).

The contents of the web site are for general information only and is not intended to be relied upon for specific or general decisions. Appropriate independent professional advice should be paid for before making such a decision.

All rights are reserved the contents of the web site is not to be reproduced or transmitted in any form in whole or part without the express written permission of 1stAssociated.co.uk.