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  • FIRST POST
    • Lovem
    • By Lovem 19th Jun 17, 7:55 PM
    • 168Posts
    • 184Thanks
    Lovem
    House down-valued 'ex local authority'
    • #1
    • 19th Jun 17, 7:55 PM
    House down-valued 'ex local authority' 19th Jun 17 at 7:55 PM
    Hi,
    Our property has been down valued. General seems to be accept it without any questions as to why?

    We are the first to sell in the area. House is unique so not the traditional houses around that area.

    Also, the surveyor has noted the house is 'ex local authority' where is it not. Could this bring down the valuation?

    I have no idea what to do from here. Do I pull the plug on the sale? The valuation is only more £7,000 than when we purchased it 9 years ago just as the recession hit.
Page 1
    • sevenhills
    • By sevenhills 19th Jun 17, 8:38 PM
    • 364 Posts
    • 155 Thanks
    sevenhills
    • #2
    • 19th Jun 17, 8:38 PM
    • #2
    • 19th Jun 17, 8:38 PM
    Also, the surveyor has noted the house is 'ex local authority' where is it not. Could this bring down the valuation?

    I have no idea what to do from here. Do I pull the plug on the sale? The valuation is only more £7,000 than when we purchased it 9 years ago just as the recession hit.
    Originally posted by Lovem
    Prices are going down a little at the moment. Tell the surveyor, or is it lower because its a council house area?
    I live in a council house, mostly private now.
    • Lovem
    • By Lovem 19th Jun 17, 8:42 PM
    • 168 Posts
    • 184 Thanks
    Lovem
    • #3
    • 19th Jun 17, 8:42 PM
    • #3
    • 19th Jun 17, 8:42 PM
    Prices are going down a little at the moment. Tell the surveyor, or is it lower because its a council house area?
    I live in a council house, mostly private now.
    Originally posted by sevenhills
    Hi,
    It is a council house area. However, it has undergone extensive regeneration. Our particular house area is all private owned from new build.
    • Cakeguts
    • By Cakeguts 19th Jun 17, 11:36 PM
    • 2,667 Posts
    • 3,642 Thanks
    Cakeguts
    • #4
    • 19th Jun 17, 11:36 PM
    • #4
    • 19th Jun 17, 11:36 PM
    Hi,
    It is a council house area. However, it has undergone extensive regeneration. Our particular house area is all private owned from new build.
    Originally posted by Lovem
    It is probably the council house area. Houses that are close to a large council estate tend to drop in value to nearer the price of an ex council house rather than match the price of non council houses. It is due to the fact that people would prefer to buy a house that is not near a council estate.
    • Davesnave
    • By Davesnave 20th Jun 17, 7:40 AM
    • 22,910 Posts
    • 88,053 Thanks
    Davesnave
    • #5
    • 20th Jun 17, 7:40 AM
    • #5
    • 20th Jun 17, 7:40 AM
    Because you don't ID your general area, no one here can tell if prices in your location ought to have risen substantially. If they haven't, then the valuation may be correct, barring the misdescription of 'ex-council.'

    If the surroundings don't look particularly great, then challenging the description might not make a lot of difference.

    We also can't comment on whether you should stop the sale. Many people in all sorts of houses find that a valuation is less than expected, or receive offers lower than they want. I got about £60k less than I expected in the recession, but it didn't stop me selling and gambling on finding another at a much reduced price. We all treat risk and disappointment differently.

    In your case, it may be that you could meet the buyer half way over the shortfall. You won't know till there's a bit of horse-trading. It also depends on what you want to do next, what you have in the way of savings etc. Too many imponderables really at this point!
    'A society grows great when old men plant trees whose shade they'll never sit in.'
    • Lovem
    • By Lovem 20th Jun 17, 7:56 AM
    • 168 Posts
    • 184 Thanks
    Lovem
    • #6
    • 20th Jun 17, 7:56 AM
    • #6
    • 20th Jun 17, 7:56 AM
    Because you don't ID your general area, no one here can tell if prices in your location ought to have risen substantially. If they haven't, then the valuation may be correct, barring the misdescription of 'ex-council.'

    If the surroundings don't look particularly great, then challenging the description might not make a lot of difference.

    We also can't comment on whether you should stop the sale. Many people in all sorts of houses find that a valuation is less than expected, or receive offers lower than they want. I got about £60k less than I expected in the recession, but it didn't stop me selling and gambling on finding another at a much reduced price. We all treat risk and disappointment differently.

    In your case, it may be that you could meet the buyer half way over the shortfall. You won't know till there's a bit of horse-trading. It also depends on what you want to do next, what you have in the way of savings etc. Too many imponderables really at this point!
    Originally posted by Davesnave
    Hi,
    The house went over on asking price and sold within a week. So this down-valuation has really surprised us. I did worry about it happening but when all EA's gave the same guidance price. We thought it would be ok.

    I have already given the EA's the offer that we will meet the buyers half way but I don't think they will.
    • Ithaca
    • By Ithaca 20th Jun 17, 9:13 AM
    • 202 Posts
    • 214 Thanks
    Ithaca
    • #7
    • 20th Jun 17, 9:13 AM
    • #7
    • 20th Jun 17, 9:13 AM
    We are the first to sell in the area. House is unique so not the traditional houses around that area.
    Originally posted by Lovem
    This might be part of the reason. Surveyors like to justify their valuations by referring to recently sold properties... i.e. if an identical house down the road sold six months ago for a similar amount they are much more confident with their valuations.

    As yours is (1) unique and (2) the first to be sold there's limited data on which to base a valuation, and some surveyors might downvalue to take account of that uncertainty (and to cover their a*ses).

    What sort of percentage decrease are we talking about?
    • eddddy
    • By eddddy 20th Jun 17, 9:47 AM
    • 4,944 Posts
    • 4,596 Thanks
    eddddy
    • #8
    • 20th Jun 17, 9:47 AM
    • #8
    • 20th Jun 17, 9:47 AM
    You don't specifically say - has the buyer reduced their offer to the valuation figure?

    It could be that that they don't have sufficient cash to pay above the mortgage valuation.

    You could try suggesting that the buyers try a different lender, who would use a different valuer, who might value it higher - but that might be grasping at straws.
    • teddysmum
    • By teddysmum 20th Jun 17, 12:34 PM
    • 8,027 Posts
    • 4,789 Thanks
    teddysmum
    • #9
    • 20th Jun 17, 12:34 PM
    • #9
    • 20th Jun 17, 12:34 PM
    It is probably the council house area. Houses that are close to a large council estate tend to drop in value to nearer the price of an ex council house rather than match the price of non council houses. It is due to the fact that people would prefer to buy a house that is not near a council estate.
    Originally posted by Cakeguts


    This is not necessarily the case.Our 1970s private estate has council estates all round ,from1930s to some also 1970s,but our houses sell for quite a bit more than even the newer council houses and also sell for slightly more than on another estate of the same design by the same builder. (A bungalow is 'sold' after only having the EA's board up for 2 weeks and for most of that time there were no details on the EA's website).
    • Cakeguts
    • By Cakeguts 20th Jun 17, 1:03 PM
    • 2,667 Posts
    • 3,642 Thanks
    Cakeguts
    This is not necessarily the case.Our 1970s private estate has council estates all round ,from1930s to some also 1970s,but our houses sell for quite a bit more than even the newer council houses and also sell for slightly more than on another estate of the same design by the same builder. (A bungalow is 'sold' after only having the EA's board up for 2 weeks and for most of that time there were no details on the EA's website).
    Originally posted by teddysmum
    What I had in mind is what is near this house. http://www.rightmove.co.uk/property-for-sale/property-58504666.html There is a new development not far from here and the houses on there were cheaper to start with than in better areas and are likely to drop to match the surrounding area prices. So anyone buying on the new development rather than an ex council house can be expected to make a huge loss when the new houses become 2nd hand. The ex council houses like the one above on this council estate are cheaper than most of the 2 bed terraced houses in better areas. So unless the new houses are sold really cheaply they aren't going to be desirable to anyone to buy.

    In this case I would expect all the new houses close by to be down valued by quite a lot when put up for sale because I can see that the banks and mortgage providers would be worried about how low the price would have to be on a repossessed property in order to sell it.
    • Cakeguts
    • By Cakeguts 20th Jun 17, 2:14 PM
    • 2,667 Posts
    • 3,642 Thanks
    Cakeguts
    http://www.rightmove.co.uk/property-for-sale/property-64902605.html Found a better example of a modern private house on a large council estate.

    http://www.rightmove.co.uk/property-for-sale/property-47840664.html Why would anyone buy the first example when you can get a better house for much less in the same area?
    • nicmyles
    • By nicmyles 20th Jun 17, 3:21 PM
    • 75 Posts
    • 68 Thanks
    nicmyles
    Further to other answers, you could suggest the buyers challenge the valuation. We did this when a flat we were buying was down-valued, but only because we were 100% confident in the market and the value we had placed on the property i.e. we were as certain as we could be that we weren't over-paying. (History proved us correct.)

    Your buyers will need to have the same confidence to do this, and even then may not be successful. We weren't and vendor pulled out. If your buyers wanted to attempt this, they will need to build a case - I would certainly be using the fact the surveyor has mis-identified the property type as a good starting point.

    But realistically, they aren't likely to get very far.
    • Crashy Time
    • By Crashy Time 21st Jun 17, 10:51 AM
    • 4,525 Posts
    • 2,053 Thanks
    Crashy Time
    Hi,
    Our property has been down valued. General seems to be accept it without any questions as to why?

    We are the first to sell in the area. House is unique so not the traditional houses around that area.

    Also, the surveyor has noted the house is 'ex local authority' where is it not. Could this bring down the valuation?

    I have no idea what to do from here. Do I pull the plug on the sale? The valuation is only more £7,000 than when we purchased it 9 years ago just as the recession hit.
    Originally posted by Lovem

    Depends how much you want to sell it, were you expecting a massive profit?
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