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Worried about bank valuation . . . .
Lindy_Loo_3
Posts: 120 Forumite
After a long time looking and several let downs (refused offers and 1 gazump), we have found a lovely home that we want to call our own.
We put in our offer and after some negotiations, have agreed on a purchase price of £155k down from £165k.
We're estatically happy that everything seems to be going well but we have one major reservation; the bank valuation.
Basically, the house was bought in Dec' 07 for £164k BUT was in a terrible state. The current owners spent a fair amount of money doing it up and it's in lovely condition now (replastered walls, new bathroom, new flooring / carpets throughout etc).
The house was priced realistically and had alot of offers although we were the only ones not in a chain as FTB. The sellers actually agreed to sell to us at the lower price because we were honest and genuine about what we could afford and they liked us (I know some people may scoff at this but we quite easily believe this after meeting with them during the viewings).
So this is our only potential problem - the bank's survey. I understand that RICS guidelines state that (basically) the value is subject to the price agreed between the buyer and vendor and dependant on recenctly sold property comparables. However I also know that some surveyors like to use information sites such as mouseprice etc. After looking at mouseprice and some other similar sites (including Nationwide's index linked calculator)they value the house at £131,600 which quite simply, is seriously low for the area.
I know the probable thing is to wait until the survey is done . . . . what I'd like to hear is from anyone who has had this kind of situation and how it panned out for them?
Any advice / experiences would be greatly appreciated.
We put in our offer and after some negotiations, have agreed on a purchase price of £155k down from £165k.
We're estatically happy that everything seems to be going well but we have one major reservation; the bank valuation.
Basically, the house was bought in Dec' 07 for £164k BUT was in a terrible state. The current owners spent a fair amount of money doing it up and it's in lovely condition now (replastered walls, new bathroom, new flooring / carpets throughout etc).
The house was priced realistically and had alot of offers although we were the only ones not in a chain as FTB. The sellers actually agreed to sell to us at the lower price because we were honest and genuine about what we could afford and they liked us (I know some people may scoff at this but we quite easily believe this after meeting with them during the viewings).
So this is our only potential problem - the bank's survey. I understand that RICS guidelines state that (basically) the value is subject to the price agreed between the buyer and vendor and dependant on recenctly sold property comparables. However I also know that some surveyors like to use information sites such as mouseprice etc. After looking at mouseprice and some other similar sites (including Nationwide's index linked calculator)they value the house at £131,600 which quite simply, is seriously low for the area.
I know the probable thing is to wait until the survey is done . . . . what I'd like to hear is from anyone who has had this kind of situation and how it panned out for them?
Any advice / experiences would be greatly appreciated.
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Comments
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Do the details state that the property has been completley refurbed? If so the surveyor will know the score. He should go on comparable evidence.Pawpurrs x0
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Unfortunately no.
The vendors bought the property about 2 years ago and made improvements like double glazing, new bathroom and shower room etc etc. The particulars just state that it's been "well maintained" and TBH to look at it, it all looks nearly new still.
I do feel slightly sorry for the vendors as it's rather unlucky how the market went because they've really improved the property but lucky for us they're realistic and accept that they're not getting what they paid out of it.0 -
I understand that RICS guidelines state that (basically) the value is subject to the price agreed between the buyer and vendor and dependant on recenctly sold property comparables. However I also know that some surveyors like to use information sites such as mouseprice etc.
You're correct that "market value" is defined as the price that a willing buyer and a willing seller are prepared to exchange a property for, but there are other factors that now have to be taken into consideration. As we all know, the banks have taken a right battering recently, and if they're lending you a load of money, they want to know that IF you were to default on it, they would be able to get their money back. As a result of this, they are being ultra cautious in their valuations. I know YOU might be prepared to pay £x for a property, but is the rest of the market, and more importantly, are they able to?
In this instance I would suggest that the rest of the market is prepared to pay a similar amount to you, as evidenced by the fact that the sellers took a lower offer from someone who is in a position to advance.
The surveyor will have to justify his valuation anyway (one way or the other), but you may be able to use this to your advantage - ie if he comes back and says it's worth less than you have agreed.0
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