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  • FIRST POST
    • marmitemarmot
    • By marmitemarmot 16th May 17, 10:18 PM
    • 2Posts
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    marmitemarmot
    Homebuyers Report - Valuation Woes
    • #1
    • 16th May 17, 10:18 PM
    Homebuyers Report - Valuation Woes 16th May 17 at 10:18 PM
    Hi all,
    I feel like I've trawled through a lot of very similar threads to this one but couldn't find my answer, so please forgive if I'm asking again. I'm a first time buyer, everything is new and scary.

    The Homebuyer's report has come back on a 4 bed, 3 storey townhouse. The market value is £200k (what I'm paying) but the reinstatement is £142k.
    I've read lots of different threads that contradict whether this is expected or not, but I suppose what I'd like to know is:
    1. Is this large difference in values something I should be concerned about?
    2. Could it give some wiggle room for negotiating the price downwards?
    3. Should the surveyor have provided a different market valuation figure? (not just the one I'm paying)

    Thanks in advance for anybody's help. All will be gratefully appreciated.
    Ruby
Page 1
    • iDragon
    • By iDragon 16th May 17, 10:21 PM
    • 15 Posts
    • 6 Thanks
    iDragon
    • #2
    • 16th May 17, 10:21 PM
    • #2
    • 16th May 17, 10:21 PM
    depending where a house is, it's location and land may well make it more valuable than how much it would cost to rebuild it, hence difference in prices.

    So, no, the difference between those values won't give any wiggle room as such.
    • davidmcn
    • By davidmcn 16th May 17, 10:53 PM
    • 6,245 Posts
    • 6,026 Thanks
    davidmcn
    • #3
    • 16th May 17, 10:53 PM
    • #3
    • 16th May 17, 10:53 PM
    1. Is this large difference in values something I should be concerned about?
    Originally posted by marmitemarmot
    No.
    2. Could it give some wiggle room for negotiating the price downwards?
    No. The reinstatement value is only of interest for your buildings insurance.
    3. Should the surveyor have provided a different market valuation figure? (not just the one I'm paying)
    If the actual market value is less than what you're paying, yes.
    • glasgowdan
    • By glasgowdan 16th May 17, 11:31 PM
    • 2,630 Posts
    • 2,934 Thanks
    glasgowdan
    • #4
    • 16th May 17, 11:31 PM
    • #4
    • 16th May 17, 11:31 PM
    Reinstatement value has very little to do with what he house is worth. It's a very rough guess at what a builder would charge to rebuild the house and has nothing to do with land/plot value, desirability eta
    • Davesnave
    • By Davesnave 17th May 17, 6:11 AM
    • 23,676 Posts
    • 89,633 Thanks
    Davesnave
    • #5
    • 17th May 17, 6:11 AM
    • #5
    • 17th May 17, 6:11 AM
    3. Should the surveyor have provided a different market valuation figure? (not just the one I'm paying)
    Originally posted by marmitemarmot
    No. These figures will usually just match if there are no valuation concerns.
    'A society grows great when old men plant trees whose shade they'll never sit in.'
    • Rambosmum
    • By Rambosmum 17th May 17, 10:07 AM
    • 1,547 Posts
    • 2,010 Thanks
    Rambosmum
    • #6
    • 17th May 17, 10:07 AM
    • #6
    • 17th May 17, 10:07 AM
    If the valuation of £200k, is the same as the amount you have offered for the house (or there abouts) then that's good - it means it is worth what you have offered (in the eyes of the surveyor). You have no wiggle or negotiation to do.

    The 'reinstatement value' is the cost to rebuild your house should it burn to the ground or fall down. It has very very little to do with a properties market value. You'll need this figure when buying house insurance.
    • greatgimpo
    • By greatgimpo 17th May 17, 10:10 AM
    • 733 Posts
    • 1,053 Thanks
    greatgimpo
    • #7
    • 17th May 17, 10:10 AM
    • #7
    • 17th May 17, 10:10 AM
    The 'reinstatement value' is the cost to rebuild your house should it burn to the ground or fall down.
    Originally posted by Rambosmum
    You would already own the land, so wouldn't need to buy it again, hence the main difference.
    • G_M
    • By G_M 17th May 17, 2:48 PM
    • 42,229 Posts
    • 49,030 Thanks
    G_M
    • #8
    • 17th May 17, 2:48 PM
    • #8
    • 17th May 17, 2:48 PM
    So the land you are buying is worth £58K and the building you are buying is worth £142K.

    Combined together, what you are buying is worth £200K.
    • marmitemarmot
    • By marmitemarmot 22nd May 17, 8:09 AM
    • 2 Posts
    • 0 Thanks
    marmitemarmot
    • #9
    • 22nd May 17, 8:09 AM
    • #9
    • 22nd May 17, 8:09 AM
    Thanks for your clarification everybody.
    I really appreciate your input, my mind is a little more at ease now
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