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Valuers running scared
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socrates
Posts: 2,889 Forumite
Just had four valuations done on BTL remortgage properties. I did my homework - getting respected local agents round to give me valuations based on quick sales and also using Rightmove as a yardstick.
Then I gave conservative approximate valuations to the lenders.
I just got back the valuations - to say the least they are ridiculous - according to the valuers my properties have stood still in value for the last two years - even with the recent downturn have properties gone down by 15-20%?
Now I need to argue the toss - which is a losing battle.
Then I gave conservative approximate valuations to the lenders.
I just got back the valuations - to say the least they are ridiculous - according to the valuers my properties have stood still in value for the last two years - even with the recent downturn have properties gone down by 15-20%?
Now I need to argue the toss - which is a losing battle.
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Just had four valuations done on BTL remortgage properties. I did my homework - getting respected local agents round to give me valuations based on quick sales and also using Rightmove as a yardstick.
Then I gave conservative approximate valuations to the lenders.
I just got back the valuations - to say the least they are ridiculous - according to the valuers my properties have stood still in value for the last two years - even with the recent downturn have properties gone down by 15-20%?
Now I need to argue the toss - which is a losing battle.
Hi,
Am I correct in assuming you got a few agents to do a market appraisal (ie a quick look round of the property) to come up with figure X.
Your bank then instructed valuers to do a valuation which has given them a value Y, and you are arguing that the value of Y is considerably lower than X.
Best of luck arguing! The bank valuations are very comprehensive and will be backed up with a full report with plenty of comparable evidence, completed by a RICS Chartered Surveyor. These valuations cost the bank about £500+VAT a pop.
Your market appraisals were probably done by Estate Agents based on a rule of thumb and nothing more, and Rightmove only shows the asking price.
Unfortunately, the bank has considerable legal comeback on the chartered surveyors if the valuations are considerably wrong and they tend to be very conservative with their valuations, especially in this current market.Savings - £18,500 @ 5.22% Average0 -
Perhaps they were overvalued two years ago?
What type of property are they? A 15-20% fall over the past two years has been known to occur with new-build. A stagnant value could be quite fortunate.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Its moved from a sellers market to a buyers market. The prices probably reflect that.
New builds and flats seem to be suffering and some parts of the country have seen 20% drops already (heard that about N.Ireland the other day)I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
...according to the valuers my properties have stood still in value for the last two years -
Quite a few parts of the UK have not risen by much in the last 2-3 years: most of the national recent "boom" is based on rises in London, Scotland and Northern Ireland.
If your properties are new build apartments there could be a further problem: lenders now mark down these properties as they have become aware that the developers have falsely inflated the selling price so as to then sell it by offering various "discounts".
Inner city newbuild apartments are also expected to suffer price falls due to an oversupply problem.Trying to keep it simple...
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Weve just had our house valued for mortgage purposes. They valued it at £235k, its on the market for £275k. Now I accept 275 maybe be overvalued but 40K less? I asked the IFA and she said that all the valuations are coming back lower than expected and she thinks they are just being over cautious.
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Weve just had our house valued for mortgage purposes. They valued it at £235k, its on the market for £275k. Now I accept 275 maybe be overvalued but 40K less? I asked the IFA and she said that all the valuations are coming back lower than expected and she thinks they are just being over cautious.
235K is what, 15% less? According to a respected ratings agency, UK property is 20% overvalued. According to HSBC, UK property is 30% overvalued. And according to the IMF, UK property is 40% overvalued.
In view of this, 15% seems quite conservative. The value of your house is what the market accepts.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
A neighbour of my nan has just sold her 4-bed bungalow in Devon for £345k
It last went for £360K in 2003!!! That's a nominal fall in price over the last 4 years, in real terms it's a fall of around 20%. The important thing to realise here is that she was a forced seller, i.e. she needed to sell so the prices was dropped to sell. Many people are not forced sellers so you see a lot of property going unsold. Therefore Rightmove prices are no indication of what your property is now currently worth
My nan is also trying to sell her identical bungalow, on the market at £375k after one sale fell through as the chain broke down.
I think it's time to realise that house prices are on the way down and aren't worth what they were at the begining of the year. This shouldn't be any surprise as the credit market is now completely different and banks are tightening their lending criteria.0 -
Daddy_Bear wrote: »A neighbour of my nan has just sold her 4-bed bungalow in Devon for £345k
It last went for £360K in 2003!!! That's a nominal fall in price over the last 4 years, in real terms it's a fall of around 20%. The important thing to realise here is that she was a forced seller, i.e. she needed to sell so the prices was dropped to sell. Many people are not forced sellers so you see a lot of property going unsold. Therefore Rightmove prices are no indication of what your property is now currently worth
My nan is also trying to sell her identical bungalow, on the market at £375k after one sale fell through as the chain broke down.
I think it's time to realise that house prices are on the way down and aren't worth what they were at the begining of the year. This shouldn't be any surprise as the credit market is now completely different and banks are tightening their lending criteria.
Spot on, people that can sit there and hold tight are not the ones who determine market price - it's only those that have to sell.
Houses can have all the sky high valuations they like but are only worth what people are prepared to pay for them at the end of the day.0 -
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Richard_III wrote: »Unfortunately, in the near future, its not what people are prepared to pay, but what the banks will be prepared to lend.
I think that's been the case for the last few years...hence the crazy price rises
The two figures are the same for many people. 0
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