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    • DesWalker
    • By DesWalker 12th Oct 17, 4:35 PM
    • 7Posts
    • 2Thanks
    DesWalker
    Surveyor undervaluation has lost us a sale
    • #1
    • 12th Oct 17, 4:35 PM
    Surveyor undervaluation has lost us a sale 12th Oct 17 at 4:35 PM
    Hi All,

    We live on a private estate of twenty properties. It is a unique estate set in beautiful private grounds. All properties were originally bought from the builder in the first half of 2003 and the prices paid for all twenty properties are available on Rightmove.

    In the last year three estate properties have been sold for prices of 130%, 134% and 139% of their 2003 values. So a fairly consistent pattern on which to value other properties on the estate including our property. This is really the only way of valuing these properties as there is absolutely nothing else comparable for miles and miles. It is a pretty unique setting.

    Based on the above analysis we put our property on the market for 137% of the 2003 price and got a full asking price offer. We then negotiated a delayed completion to avoid going into rented and reduced the sale price to 135% of the 2003 price as a gesture of goodwill to the buyer.

    The mortgage company of the buyer had a home buyers report and valuation and it never entered out head that the property was mispriced as the above analysis shows.

    A young surveyor came from outside the area and seemed to take absolutely no account of the unique setting. He produced a valuation of 114% of the 2003 price (equals £245k equals £45k less than the agreed £290k purchase price) and the buyer has walked away. We are very very upset.

    I firmly believe he has valued it based on houses with the same number of bedrooms, bathrooms, house type etc within a particular radius of us but has completely ignored the unique estate we are on.

    I sent the three examples of property sales which share our unique environment (detailed above) to the buyer as evidence of the mispricing and proof that he had in fact agreed a fair price but the damage had been done. Remember this buyer was happy to pay £295k without a second viewing but got spooked when the valuation came in at £245k.

    So, my question. Is there anything I can do ? Can I complain to somebody ? How can it be right that a young man like this can put us into so much turmoil without being accountable ? My wife is in bits as our future is on hold. Please help.

    And please, no answers from the “your house is clearly overvalued brigade”. My sale price was bang in line with the three properties sold in the last year one of which (the 134% one) is attached to me next door !! Their’s is worth 134% of the 2003 price but ours is only worth 114% !! And to rub salt into the wound, next door was a wreck whereas our house is immaculate.

    Any help very greatly appreciated.

    Des
    Last edited by DesWalker; 12-10-2017 at 4:43 PM.
Page 1
    • Browntoa
    • By Browntoa 12th Oct 17, 4:45 PM
    • 31,942 Posts
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    Browntoa
    • #2
    • 12th Oct 17, 4:45 PM
    • #2
    • 12th Oct 17, 4:45 PM
    It's "current valuation" not "last year's prices" that matter
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's and Discount Code boards which means I volunteer to help get your forum questions answered and keep the forum runnning smoothly .However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.
    • Doozergirl
    • By Doozergirl 12th Oct 17, 4:47 PM
    • 24,053 Posts
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    Doozergirl
    • #3
    • 12th Oct 17, 4:47 PM
    • #3
    • 12th Oct 17, 4:47 PM
    It was your buyer's valuation , not yours. If they've chosen to walk away, it's too late already. You were on the right track for providing examples but it's for them to do, not you, althought you can obviously show them.

    They could have gone to another company, but it's their prerogative to walk too.

    I'm sure it won't happen again. Full asking price offers don't happen by fluke, generally.
    Everything that is supposed to be in heaven is already here on earth.
    • Grenage
    • By Grenage 12th Oct 17, 4:48 PM
    • 1,324 Posts
    • 1,254 Thanks
    Grenage
    • #4
    • 12th Oct 17, 4:48 PM
    • #4
    • 12th Oct 17, 4:48 PM
    So, my question. Is there anything I can do ? Can I complain to somebody ? How can it be right that a young man like this can put us into so much turmoil without being accountable ? My wife is in bits as our future is on hold.
    Originally posted by DesWalker
    As the fellow didn't work for you, there's not much you can do. I would simply put it back on the market and try again.
    • Comms69
    • By Comms69 12th Oct 17, 4:52 PM
    • 1,243 Posts
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    Comms69
    • #5
    • 12th Oct 17, 4:52 PM
    • #5
    • 12th Oct 17, 4:52 PM
    The property has grown only 39% in 14 years? - hmmm perhaps it's not as unique as you think?


    Anyway to answer your actual question: Is there anything I can do ? Can I complain to somebody ? How can it be right that a young man like this can put us into so much turmoil without being accountable ? My wife is in bits as our future is on hold. Please help.

    no, absolutely not. and it's for the following reason: You had no contract with him or his employer


    The fact that you've used 'young' three times suggests you are actually quite a difficult person. The chap is in all likelihood a qualified surveyor, and certainly better qualified than you to judge the value of a property. He has no interest in undervaluing, you have an interest in over valuing....


    The fact is, he is accountable, just not to you. Why don't YOU pay for a surveyor to value your home?!
    • davidmcn
    • By davidmcn 12th Oct 17, 4:53 PM
    • 6,260 Posts
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    davidmcn
    • #6
    • 12th Oct 17, 4:53 PM
    • #6
    • 12th Oct 17, 4:53 PM
    It's entirely up to your buyer whom they seek professional advice from during their purchase and whether they choose to pay attention to their advisors' opinions or not.
    • Comms69
    • By Comms69 12th Oct 17, 4:55 PM
    • 1,243 Posts
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    Comms69
    • #7
    • 12th Oct 17, 4:55 PM
    • #7
    • 12th Oct 17, 4:55 PM
    Infact I'm so surprised I just checked inflation rate for 2003-2017:


    UK Inflation Rate, 2003-2017 (£100)
    According to the Office for National Statistics, the pound experienced an average inflation rate of 2.89% per year. Prices in 2017 are 49.0% higher than prices in 2003.
    In other words, £100 in the year 2003 is equivalent to £148.96 in 2017, a difference of £48.96 over 14 years.




    Are you seriously suggesting your house has actually lost value?
    • DesWalker
    • By DesWalker 12th Oct 17, 4:56 PM
    • 7 Posts
    • 2 Thanks
    DesWalker
    • #8
    • 12th Oct 17, 4:56 PM
    • #8
    • 12th Oct 17, 4:56 PM
    Thanks for the replies.

    For clarification, the 139% sale was in July, the 134% (next door) was in March and the 130% was last October, so there is actually an upward trajectory.

    Yet mine is valued at 114% last month. I don’t think this can be attributed to “current prices vs last year’s prices” ??

    I can’t believe that I have no recourse here, and am just expected to shut up and start again. This kid has not done his job and it may well have lond term repercussions for us.

    At the very least I intend to complain to RICS, but I wonder if I have legal recourse ...
    • Comms69
    • By Comms69 12th Oct 17, 5:00 PM
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    Comms69
    • #9
    • 12th Oct 17, 5:00 PM
    • #9
    • 12th Oct 17, 5:00 PM
    Thanks for the replies.

    For clarification, the 139% sale was in July, the 134% (next door) was in March and the 130% was last October, so there is actually an upward trajectory.

    Yet mine is valued at 114% last month. I don’t think this can be attributed to “current prices vs last year’s prices” ??

    I can’t believe that I have no recourse here, and am just expected to shut up and start again. - exactly that. This kid has not done his job and it may well have lond term repercussions for us. - Yes he has, he has advised HIS clients according to his expertise!

    At the very least I intend to complain to RICS, but I wonder if I have legal recourse ...
    Originally posted by DesWalker

    Oh dear lord almighty, NO! you cant sue the guy. (well you can try, but you'll definitely lose)


    What's your profession that you seem to think you know more than he does?
    • Natbag
    • By Natbag 12th Oct 17, 5:01 PM
    • 1,162 Posts
    • 802 Thanks
    Natbag
    Was it Countrywide by any chance? If so, Google them, they do it to everyone.
    This happened to us recently. They valued our house down by £10k putting it at the same price we paid for it 9 years ago despite renovations throughout, which was ridiculous when two identical properties next door and next door but one that hadn't had the renovations had both sold for the same agreed price as ours within the last year. I've heard they will look at all similar properties within an x-mile radius, so although you might live on a lovely private quiet new estate, they will take into account properties sold on nearby not as lovely estates.
    Anyway, the lender refused to lend, our buyers refused to change lender and get a new valuation, and we couldn't knock £10k off the asking price so the house went back on the market. We didn't get as much interest as quickly, so reduced our asking price by £5k after our vendor met us half way with a reduction, and our next buyers' valuation with Colleys went through fine. I dare say if Colleys had valued the first time we wouldn't have had any problems.
    • DesWalker
    • By DesWalker 12th Oct 17, 5:01 PM
    • 7 Posts
    • 2 Thanks
    DesWalker
    Comms,

    Thanks for checking the inflation rates.

    Yes we live in a deeply unfashionable part of the country but in a beautiful setting that elsewhere in the country would have skyrocketed.

    The numbers are completely accurate. I have a maths PhD so you can be sure that what I am saying is true. We bought in mid 2003 for 215k, asked 295k, received an offer of that price, chose to delay completion for four months so reduced the agreed price to 290k. The valuation came in at 245k, just 30k more than we paid for it !! Gobsmacked and very distressed ...
    • DesWalker
    • By DesWalker 12th Oct 17, 5:04 PM
    • 7 Posts
    • 2 Thanks
    DesWalker
    Comms,

    My profession is that I have a brain to differentiate between a property in a unique setting that has three precedents in the last year supporting the valuation rather than something on a random housing estate.

    HTH
    • LEJC
    • By LEJC 12th Oct 17, 5:05 PM
    • 9,038 Posts
    • 59,497 Thanks
    LEJC
    I'm not sure what long term repercussions you think you may have going forward....but lots of sales fall through....I may even have read that the number is 1 in 4....

    It's disappointing that yours has....but bounce back ....get it relisted and start welcoming a whole new set of potential buyers.
    The fact that you went into this with an asking price offer bodes well...people clearly like it.
    frugal October...£41.82 of £40 food shopping spend for the 2 of us!

    2017 toiletries challenge 160 out 139 in ...£18.64 spend
    • Comms69
    • By Comms69 12th Oct 17, 5:07 PM
    • 1,243 Posts
    • 1,013 Thanks
    Comms69
    Comms,

    My profession is that I have a brain to differentiate between a property in a unique setting that has three precedents in the last year supporting the valuation rather than something on a random housing estate.

    HTH
    Originally posted by DesWalker


    So you aren't a valuer or a surveyor?


    I'm not a doctor, so would you take medical advice from me?


    Look I appreciate you aren't happy, but the fact is your house has lost value, significantly over the last 14 years. Why are you moving now?
    • davidmcn
    • By davidmcn 12th Oct 17, 5:13 PM
    • 6,260 Posts
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    davidmcn
    At the very least I intend to complain to RICS, but I wonder if I have legal recourse ...
    Originally posted by DesWalker
    As advised above, you've got no recourse to do anything about other people's surveyors, so please don't waste everybody's time by trying.
    • DesWalker
    • By DesWalker 12th Oct 17, 5:20 PM
    • 7 Posts
    • 2 Thanks
    DesWalker
    Okay. Thanks for those replies who tried to be constructive and help. Unfortunately the others couldn’t help themselves ... No surprises there.

    And sorry if I wasted anybody’s time. You always had the option of clicking “next”.
    • Comms69
    • By Comms69 12th Oct 17, 5:22 PM
    • 1,243 Posts
    • 1,013 Thanks
    Comms69
    Okay. Thanks for those replies who tried to be constructive and help. Unfortunately the others couldn’t help themselves ... No surprises there.

    And sorry if I wasted anybody’s time. You always had the option of clicking “next”.
    Originally posted by DesWalker


    You're welcome


    - sometimes you don't like what you hear, but it's still right.
    • chappers
    • By chappers 12th Oct 17, 5:23 PM
    • 2,948 Posts
    • 1,701 Thanks
    chappers
    but I wonder if I have legal recourse ...
    Originally posted by DesWalker
    None whatsoever, if you really want someone to put their professional indemnity against the valuation then get it surveyed as a commercial transaction. if they then screwed it up you would have recourse to sue,
    But for that privilege expect to pay affair whack for the valuation.

    Suck it up move on and find another buyer.
    • Onwards and upwards
    • By Onwards and upwards 12th Oct 17, 5:27 PM
    • 43 Posts
    • 7 Thanks
    Onwards and upwards
    Hi, something very similar happened to us as buyers. As we are in Scotland, the home report that the seller had done valued the property at 450k. Our mortgage company then sent in their own surveyor who valued it at 390k (the house is also in a private estate in a unique setting and this new surveyor worked on the other side of the country!) We were gutted as we knew the house was worth it. Luckily, the mortgage company took into account the peculiarity of the huge discrepancy and permitted us (at our cost) to send in another surveyor (a different firm but at their choosing) who valued the property at the price we had offered. Would you or your buyer be prepared to investigate this avenue?
    • ACG
    • By ACG 12th Oct 17, 5:28 PM
    • 15,882 Posts
    • 8,134 Thanks
    ACG
    Down valuations happen all the time.
    If the buyers liked the property enough, they could have tried a different lender.

    You have no contract with the surveyor, his employer or RICS - your complaint will be thrown out.

    Put it to bed, it happens. Move on, concentrate on finding a new buyer who will use a different surveyor.

    Anything more than that is a waste of your time and theirs. It might make you feel better, but it will not do anything.

    I have never had a down valuation overturned. One of which I could give 15 examples of similar priced properties. The surveyor was having none of it. I have given up appealing them now.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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