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    • DD92
    • By DD92 5th Dec 17, 10:03 PM
    • 6Posts
    • 3Thanks
    DD92
    House survey down valued the house - money back
    • #1
    • 5th Dec 17, 10:03 PM
    House survey down valued the house - money back 5th Dec 17 at 10:03 PM
    Me and my other half are first time buyers and have recently had an offer accepted on a house for 215k. We had a home buyers report carried out and although no significant issues were found the house was valued at 190k. As a result the amount we can borrow has been restricted based on the revised value and if we want to continue with the purchase we would need to stump up the remaining 25k on top of our deposit (no chance!)

    The building society we went through for our mortgage in principle has an estate agent's branch which just so happens to be the estate agent selling the property. This is where a bit of frustration has crept in for me. Basically one arm of the company has valued the property at £215k and valuers acting on behalf of another arm of the company has valued it at £190k.

    In the likey event that this sale falls through (can't imagine him wanting to accept £25k less and there were other parties interested who may be able to put a little more equity in, even if it's not the full 25k) do we have any grounds to get our money back for the home buyers report as this is £500 down the toilet because the company disagrees with itself.

    I'm sure that legally we're probably not entitled to our money back but is this something the building society may cinsider from a reputational / good will gesture point of view?
Page 1
    • Marine_life
    • By Marine_life 5th Dec 17, 10:10 PM
    • 815 Posts
    • 1,460 Thanks
    Marine_life
    • #2
    • 5th Dec 17, 10:10 PM
    • #2
    • 5th Dec 17, 10:10 PM
    You have two chances - slim and none at all.

    ....and slim left town yesterday.
    Something witty goes here
    • Typhoon2000
    • By Typhoon2000 5th Dec 17, 10:17 PM
    • 777 Posts
    • 364 Thanks
    Typhoon2000
    • #3
    • 5th Dec 17, 10:17 PM
    • #3
    • 5th Dec 17, 10:17 PM
    The mortgage valuation is what the valuer recommends the to the bank as suitable security. The offer you make is what the house is worth to you. The offer accepted is what the house is worth to the vendor. So there is not just one universal 'value' to the property.
    • Slithery
    • By Slithery 5th Dec 17, 10:24 PM
    • 364 Posts
    • 526 Thanks
    Slithery
    • #4
    • 5th Dec 17, 10:24 PM
    • #4
    • 5th Dec 17, 10:24 PM
    Basically one arm of the company has valued the property at £215k...
    Originally posted by DD92
    No, it hasn't.

    It's not the EA that sets the sale price, it's the vendor.
    • DD92
    • By DD92 5th Dec 17, 10:30 PM
    • 6 Posts
    • 3 Thanks
    DD92
    • #5
    • 5th Dec 17, 10:30 PM
    • #5
    • 5th Dec 17, 10:30 PM
    No, it hasn't.

    It's not the EA that sets the sale price, it's the vendor.
    Originally posted by Slithery
    Based on a valuation given by the EA.
    • teneighty
    • By teneighty 5th Dec 17, 10:38 PM
    • 1,037 Posts
    • 735 Thanks
    teneighty
    • #6
    • 5th Dec 17, 10:38 PM
    • #6
    • 5th Dec 17, 10:38 PM
    The valuation included in the Homebuyers Report is just for your guidance,it has no relevance to your mortgage. If you arranged for your lenders mortgage valuation to be upgraded to include a cheap Homebuyers Report then chances are it was undertaken by the lender's valuer and he would have put the same reduced value on the mortgage valuation.

    Estate agents don't do valuations they do market appraisals. Their job is to secure the highest possible price for the property and often inflate the asking price, so securing an offer of £215k for a house worth £190k is pretty good for them and their client, the seller.

    You cannot get your money back for your Homebuyers Report, technically they have done you a favour by pointing out you are over paying for the house. You can go back and query the mortgage valuation though if you feel the valuer has made a mistake.
    • deannatrois
    • By deannatrois 6th Dec 17, 1:32 AM
    • 4,910 Posts
    • 6,877 Thanks
    deannatrois
    • #7
    • 6th Dec 17, 1:32 AM
    • #7
    • 6th Dec 17, 1:32 AM
    You could also apply to another mortgage lender and get a valuation survey but no guarantee they will come up with a higher value.
    • AdrianC
    • By AdrianC 6th Dec 17, 8:40 AM
    • 15,714 Posts
    • 14,030 Thanks
    AdrianC
    • #8
    • 6th Dec 17, 8:40 AM
    • #8
    • 6th Dec 17, 8:40 AM
    You seem to be complaining that the nasty men forced you to offer far too much for the property.
    • shortcrust
    • By shortcrust 6th Dec 17, 8:48 AM
    • 1,455 Posts
    • 1,912 Thanks
    shortcrust
    • #9
    • 6th Dec 17, 8:48 AM
    • #9
    • 6th Dec 17, 8:48 AM
    ....I'm sure that legally we're probably not entitled to our money back but is this something the building society may cinsider from a reputational / good will gesture point of view?
    Originally posted by DD92
    No chance whatsoever.

    ....

    Estate agents don't do valuations they do market appraisals. Their job is to secure the highest possible price for the property and often inflate the asking price, so securing an offer of £215k for a house worth £190k is pretty good for them and their client, the seller.

    ...
    Originally posted by teneighty
    Exactly. No one has done anything 'wrong'. No reputations are at stake.
    Last edited by shortcrust; 06-12-2017 at 9:01 AM.
    • ACG
    • By ACG 6th Dec 17, 9:02 AM
    • 15,896 Posts
    • 8,142 Thanks
    ACG
    The surveyor doing the homebuyers report was working for you and the lender. Had it been a basic valuation it would have been the lender only.

    Use it to go back to the vendor and renegotiate OR try another lender to see what their valuation comes back at.

    Realistically, you will be very unlikely to get that money back. On the flip side, you have potentially just saved yourself £24,500 on overpaying for a property...Although I know I would not view it like that either.

    It is the risk you take when buying a property.
    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.
    • charlesworth82
    • By charlesworth82 6th Dec 17, 1:06 PM
    • 305 Posts
    • 65 Thanks
    charlesworth82
    happened to a friend of mine.

    Valuation came in unreasonably low on a house even though exact same houses were selling for asking price on the street. Turned out they just valued the house on similar houses in a large radius, which had some very cheap areas in.

    Had to move to another mortgage provider.
    ĎIt ainít over 'til it's overí
    • david1951
    • By david1951 6th Dec 17, 1:29 PM
    • 373 Posts
    • 427 Thanks
    david1951
    From their point of view you offered too much for the house, so it's your fault, not theirs. As such, you can't get your money back.

    Try another lender. If they also 'down-value' (or, more accurately, 'value') the house at less then you can go back to the vendor with a revised asking price.
    • m0bov
    • By m0bov 6th Dec 17, 1:32 PM
    • 1,143 Posts
    • 760 Thanks
    m0bov
    EA/vendor will sell for as much as they think they can get. Surveyor works for the lender and will value based on how much the lender will get back should the lender repossess it. You can either revise your offer, walk or try another lender.
    • googler
    • By googler 6th Dec 17, 1:44 PM
    • 14,472 Posts
    • 9,347 Thanks
    googler
    Me and my other half are first time buyers and have recently had an offer accepted on a house for 215k. We had a home buyers report carried out and although no significant issues were found the house was valued at 190k. As a result the amount we can borrow has been restricted based on the revised value and if we want to continue with the purchase we would need to stump up the remaining 25k on top of our deposit (no chance!)
    Originally posted by DD92
    Happens every day, regardless of who did the valuation.

    If the mortgage valuation doesn't come up to the asking price, or the price you offered, you have options;

    1 Stump up the difference
    2 Renegotiate with the seller for a lower price, on the basis that the valuation is lower than offer, and you can't afford it
    3 Walk away.

    You offered £215k. What was the asking price?
    • Crashy Time
    • By Crashy Time 6th Dec 17, 4:44 PM
    • 5,288 Posts
    • 2,218 Thanks
    Crashy Time
    No, it hasn't.

    It's not the EA that sets the sale price, it's the vendor.
    Originally posted by Slithery

    No, it is the eventual buyer (or more accurately their lender) the vendor/EA set the asking (wishing?) price.
    • Crashy Time
    • By Crashy Time 6th Dec 17, 4:45 PM
    • 5,288 Posts
    • 2,218 Thanks
    Crashy Time
    From their point of view you offered too much for the house, so it's your fault, not theirs. As such, you can't get your money back.

    Try another lender. If they also 'down-value' (or, more accurately, 'value') the house at less then you can go back to the vendor with a revised asking price.
    Originally posted by david1951

    Best way to save money is to stop offering too much for houses.
    • kingstreet
    • By kingstreet 6th Dec 17, 4:49 PM
    • 32,366 Posts
    • 17,376 Thanks
    kingstreet
    A local agency of a lender doesn't mean they will have any knowledge of your mortgage in that office.

    The surveyor appointed by the lender is independent of lender and estate agent, so any collusion would be impossible/pointless.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • Crashy Time
    • By Crashy Time 6th Dec 17, 10:21 PM
    • 5,288 Posts
    • 2,218 Thanks
    Crashy Time
    The valuation included in the Homebuyers Report is just for your guidance,it has no relevance to your mortgage. If you arranged for your lenders mortgage valuation to be upgraded to include a cheap Homebuyers Report then chances are it was undertaken by the lender's valuer and he would have put the same reduced value on the mortgage valuation.

    Estate agents don't do valuations they do market appraisals. Their job is to secure the highest possible price for the property and often inflate the asking price, so securing an offer of £215k for a house worth £190k is pretty good for them and their client, the seller.

    You cannot get your money back for your Homebuyers Report, technically they have done you a favour by pointing out you are over paying for the house. You can go back and query the mortgage valuation though if you feel the valuer has made a mistake.
    Originally posted by teneighty

    Expensive favour, but you are saving more in the long run.
    • Gwendo40
    • By Gwendo40 7th Dec 17, 6:52 AM
    • 19 Posts
    • 10 Thanks
    Gwendo40
    Paying £500 to save you from the very costly mistake of paying £25,000 too much for something seems like a real bargain to me too... if I were you I'd be very, very grateful to the valuation surveyor, perhaps send them a little something for Christmas to show your appreciation?
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