House undervalued by HSBC

kingstongold

Basically house was valued by them at 145.
We thought it was nearer to 160 and 2 estate agents confirmed this, one said even 165+.
The whole mortgage was agreed and we'd paid the fees but there is the massive difference in the valuation.

What can we do?

_Andy_

It's not been under-valued. The estate agents were the ones that over-valued it.
This is a very common situation as house values are falling.
Unless you can provide clear (and very recent) evidence of 2-3 comparable properties actually selling for the amount you need then there's nothing you can do.

mystic_trev

Valuers are doing much the same as buyers, knocking 10% off the asking price.

Browntoa

not much you can do unless the seller accepts the lower price

minimike2

Agree with Andy. Its not been undervalued. E.As have over valued.

A lot of E.As dont really know what a falling market is and continue to slap stupid prices on properties. A lot employ young people who do not have experience of anything other than a rising market, so when it comes to times like these they still add 10% on to what they were valuing at a year before. Even some experienced ones do it just to win your business.

FraudBuster

and 2 estate agents confirmed this, one said even 165+.

.........and you believe EA's?

From Property Bee:

History

dateevent11 July 2008

• Price changed: from '£162,000' to '£159,950'

03 July 2008

• Price changed: from '£169,950' to '£162,000'

09 June 2008

• Price changed: from '£174,995' to '£169,950'

29 March 2008

• Price changed: from '£177,950' to '£174,995'

16 March 2008

• Price changed: from '£179,950' to '£177,950'

03 March 2008

• Initial entry found.

sarkin

Or try this

09 July 2008

• Price changed: from '£200,000' to '£189,950' [IMG]chrome://property-bee/skin/user_comment.png[/IMG]

12 May 2008

• Price changed: from '£225,950' to '£200,000' [IMG]chrome://property-bee/skin/user_comment.png[/IMG]

02 May 2008

• Subtitle changed: from '3 bedroom semi-detached' to '3 bedroom house' [IMG]chrome://property-bee/skin/user_comment.png[/IMG]

31 March 2008

• Subtitle changed: from '3 bedroom detached' to '3 bedroom semi-detached' [IMG]chrome://property-bee/skin/user_comment.png[/IMG]

18 March 2008

• Price changed: from '£261,950' to '£225,950' [IMG]chrome://property-bee/skin/user_comment.png[/IMG]
• Subtitle changed: from '3 bedroom house' to '3 bedroom detached' [IMG]chrome://property-bee/skin/user_comment.png[/IMG]

04 February 2008

• Initial entry found. [IMG]chrome://property-bee/skin/user_comment.png[/IMG]

LisbonLaura

kingstongold wrote: »

What can we do?

Walk away. Treat it as a wake-up call.

Your minor losses will be as nothing compared to the devaluation of the house over coming years.

Though if you are not bothered paying twice the mortgage you would have done if you had waited a while, then ignore my nonsense

dunstonh

Houses do not have a price tag. They are priced by what someone is willing to pay and a guess at what someone is willing to pay.

The estate agent gets paid a percentage of sale price so they want the figure as high as possible. If you are shopping around between estate agents the not-so-honest ones will give you a higher price in the hope you will choose them to sell the property and not the one that gives the reaslistic price (and that usually works for the not-so-honest agent as most go with the agent that says the highest price).

The surveyor values the property on the basis of a realistic relatively quick sale and takes market conditions into account. They get paid regardless of what they value the property at so they have no hidden agenda.

You need to go back to the estate agent now and tell them the valuation has come in at £145k and that you are revising your offer to £145k. The seller then has a choice to accept that (and you save over £15k) or refuse. If they refuse you walk away or you put more money down and accept that you would be paying more for the property than it is worth and will likely be in negative equity within 6-12 months.

Sooler

Big deal if some flash git in a suit says it's worth 165K, he's not paying the mortgae, he's not lending the money - agents opinions are worthless. Any mug can pay what they like for the property but bank considers there's no value in the house of anything more than £145K.

Offer 145K less 10% or walk away, the vendor can take it or leave it, no loss to you.

gil13

was it a drive-by valuation or in-property?