Valuation Report 8k deficit

worriedfirsttimebuyer

I hope this advice is useful:

We had a similar problem and I went into panic-mode too. So I called the Surveyor himself to clarify the valuation and it turned out there had been an error.

In the report, it said "houses of this age and location go for 110k-120k" but no mention AT ALL of the actual valuation price. Building society had told us after seeing this that they would only lend 95% of £110K when the actual purchase price was £111k (so we were needing to find another thousand upfront).

Surveyor said he'd 'forgotten' to put the actual valuation of 111k in the report, and the BS had just jumped to a conclusion. We got him to alter the report and let the BS know so it was all good. Good job we phoned.

Always phone your surveyor and go through the report/valuation with him, after all you're paying enough for it!

oscar67

A valuation survey is the basic survey which the surveyor could largely write sat at his desk! You might have been better advised to go for a home buyers survey which is a detailed inspection of the visible parts of the property, but not as thorough as a building survey. Unfortunately, the valuation survey is not likely to provide you with much in the way of a detailed list of "defects" which you might be able to use to argue the price down. You may have to rely solely on your position and goodwill.

I agree you need to speak to the surveyor and find out why the valuation is lower when your own evidence suggests that similar properties have sold recently for higher prices.

Good luck

rozeepozee

Apologies if I duplicate others' replies, I've not got time to read the whole thread today.

Whenever I've bought a property, I have always placed an offer 'subject to valuation'. If the valuation comes in at less, I reduce my offer accordingly. Why on earth would anyone want to pay more than the value was deemed to be worth? I realise that valuation is an inaccurate science but I would be inclined to believe the valuer over the estate agent (and I suspect the bank will feel the same). Once you have had a chat to the valuer to discuss the discrepancy, then unless this property has some unique quality that makes it worth the extra money to you, I would reduce your offer and walk away if they won't negotiate. Good luck!

ginger_lion

Thank you all for the really helpful replies.
We have now got the report, and it turns out we were talking at crossed purposes with the mortgage broker on Friday. She was talking about 95% and we thought she was talking about the whole amount. So, to cut a long story short, the deficit is only 3k - which makes me feel a lot more optimistic about reaching a compromise with the vendor. The report cites chimney stack needs rebuilding, roof needs some repair and a couple of other minor things. So, I think we'll be okay.
Thanks again for all your help
:T