Halifax valuation makes property 20k less than my asking price offer

muggz

no im being serious.

I understand but if the report is missing tons of stuff which have implications on the value of the property?

Doozergirl

muggz wrote: »

no im being serious.

I understand but if the report is missing tons of stuff which have implications on the value of the property?

Like I said, some lenders don't even let you see the valuation. He's noted whatever he thinks appropriate. It's him that does the valuing, whether he chooses to write about what's in the house is up to him.

I think the last mortgage valuation I saw barely even mentioned the number of rooms whereas one for my business came bound in a folder with maps and photographs!

Property isn't shifting and that is because current asking prices are higher than buyer's sentiment right now. It may well be comparable with other asking prices perhaps but if those houses haven't sold and current asking prices are considered too high by the valuer, that's what he will write. If your LTV is high then there is greater risk of being downvalued. Presumably this downvaluation is preventing you from purchasing.

I'm surpised he valued property at around £250-260k as that is just above the SD threshold and properties don't generally have a value like that because people aren't prepared to pay the extra £5000 in tax. Have you checked the sold prices for that street?

You should be using your energy playing hardball with the developer, not playing hardball with the mortgage valuer. In this case and in this market, he is your friend. A vendor would be unwise to listen.

Some lenders will carry out a second valuation for free. I don't whether that is still the case or whether they are grabbing every penny they can get right now.

neverdespairgirl

muggz wrote: »

But im guessing a en-suite, new kitchen bathroom, spot lights and wooden floors throughout would affect value, however it doesn't mention any of this.

I wouldn't have thought any of that would make much of a difference.

This valuer is doing you a favour - stopping you chucking money away!

poppysarah

It's like that sketch where points of veiw readers letters "I'd gladly pay £200 for a TV Licence" (Was that not the none o clock news?)

muggz

"I'm surpised he valued property at around £250-260k as that is just above the SD threshold and properties don't generally have a value like that because people aren't prepared to pay the extra £5000 in tax. Have you checked the sold prices for that street?"

Thats a good point. Ive checked Hometrack and all the sold prices are in either 2007 or before so its hard to tell. The only thing i can compare it to is prices in 2006 when i was looking and prices in 2007, and the prices for the properties now.

needtoearnmoremoney

I was speaking to an estate agent yesterday. He had been told by a valuer that they are currently using 2006 prices and may well soon be using 2005.

muggz

Would you say that every lender would be knocking 9% off property prices at the moment or is Halifax known as being particularly harsh?

arealbasketcase

You could try commissioning another surveyor to value the property. The Halifax will contract the work out to a local surveryor whose job it is to say, pretty much, yes it is worth this or no it's not, some surveyors refer to them as drive by's! A real survey costs way more than £400 but I reckon they are worth it because they leave you in a win, win, win, win situation.

win! if the property is over valued you can put in a lower offer
win! if the property is valued for more than you have offered, zippa doo dah
win! if the surveyor spots a problem you can either negotiate money off the price to pay for the repairs or negotiate that the repairs be made as part of the contract at no cost to you
win! (a wee bit naughty) surveyor says the property is valued at about what you thought even though it needs (gross exageration here) new roof. You show the EA the bit about the new roof and negotiate a reduction in the price anyway.

Under NO circumstances must you ever show your privately commissioned survey to the sellers, the contract you sign with the surveyor will probably have this in the small print anyway but keep it close to you chest it's your weapon and no one elses, oops did I say weapon I did of course mean information, just a simple mis-spelling.;)

muggz

arealbasketcase wrote: »

You could try commissioning another surveyor to value the property. The Halifax will contract the work out to a local surveryor whose job it is to say, pretty much, yes it is worth this or no it's not, some surveyors refer to them as drive by's! A real survey costs way more than £400 but I reckon they are worth it because they leave you in a win, win, win, win situation.

win! if the property is over valued you can put in a lower offer
win! if the property is valued for more than you have offered, zippa doo dah
win! if the surveyor spots a problem you can either negotiate money off the price to pay for the repairs or negotiate that the repairs be made as part of the contract at no cost to you
win! (a wee bit naughty) surveyor says the property is valued at about what you thought even though it needs (gross exageration here) new roof. You show the EA the bit about the new roof and negotiate a reduction in the price anyway.

Under NO circumstances must you ever show your privately commissioned survey to the sellers, the contract you sign with the surveyor will probably have this in the small print anyway but keep it close to you chest it's your weapon and no one elses, oops did I say weapon I did of course mean information, just a simple mis-spelling.;)

Great advice thanks! So when i tell the estate agent tomorrow that the valuation has come in way under the asking price. I will attempt to get the asking price down first. should i not send her this valuation report from Halifax as proof, or are you talking about not sending over the separate commissioned survey

What are the chances of the seller contributing to the costs of another valuation? Im going to argue that if this is happening to me its just going to happen to someone else

bubblesmoney

rather than u worrying over the valuation, i think the builder needs to start worrying about the 20k higher price over the recent valuation.

especially seeing all the property news affecting developers. some such news like in this link and a picture of worse to come like in this link so the longer the developer waits to sell the property the bigger the hole the developers digs for themselves.

but if u really want the house and dont mind the higher price then thats ur call but be prepared to feel the pinch later yourself when the time comes to mortgage / remortgage / sell.