Surveyors & Lendors Deliberately Under Valuing Property

dial8d

You would never have guessed :rolleyes:

http://news.bbc.co.uk/1/hi/uk/8191007.stm

Lotus-eater

Yeah, I heard this. I interpreted it as meaning.... Estate agents moan and complain that market isn't having smooth ride up again.

mewbie_2

Or estate agents complain that the conspiracy of over valuation has fallen apart. Used to be it's worth what someone will pay for it. Now its worth what someone will lend you for it.

Heyman_2

Obviously this is a VI viewpoint, but one part of the article is interesting - the part where the women says she had the property valued and it came in at £80,000, then she had it valued independently and the SAME surveyor valued it £100,000. Surely that's not right?

house123

dial8d wrote: »

You would never have guessed :rolleyes:

http://news.bbc.co.uk/1/hi/uk/8191007.stm

I saw this on the news this morning; they had a couple of VI's on. It appears to me that the media have just said to the VI's, whatever you need to get back to your glory days, we will push it for you. It’s like watching a spoilt child getting their own way, when it’s totally the wrong thing to do.

StevieJ

This is probably driven by banks pretending to lend

house123

StevieJ wrote: »

This is probably driven by banks pretending to lend

Are they pretending?

dfh

So saying the correct price of a house is now "deliberate undervaluing!"

carolt

Isn't the correct title for this piece 'Owners deliberately over-valuing their properties'? :rolleyes:
The real article goes something like this:


Property sales and remortgage deals are collapsing because some property sellers are deliberately overvaluing their homes, estate agents say.

Properties are typically being overvalued by at least 10%, said the National Association of Estate Agents.

It said vendors afraid of being criticised by their spouses/mothers-in-law were being undercautious.

.....

Sellers are also affected by overvaluing as they may have to drop prices and those seeking remortgages are left with little or no flexibility.

One homeowner, Theresa Timms, told the BBC she had had problems remortgaging her home in Bridgend.

"The bank sent their own valuer who valued it at £80,000, but I knew it was worth far more so I paid £300 to get it revalued," she said.

"The valuer came and said it was worth £100,000, but it was the same person that made the first valuation."

"He told me that if I let go of his tie and didn't set the dogs on him, he'd agree to any price I asked him."

Andrew Frankish, managing director of independent broker Mortgage Talk, said: "With the mortgages that are not completing, we believe up to half of them are affected by the valuation.

"What we mean by that is the valuation is coming back at lower than they predicted, which pushes them into a higher loan to value, which means the products are too expensive or the banks are reluctant to lend in that market at all.

"This is even worse in remortgages where around three-quarters of remortgages are affected."

The Council of Mortgage Lenders said it works with professionals who are duty bound to give accurate valuations. Unfortunately, it also worked with vendors, who were not professionals and tended to overvalue their property by 23% or 33 grand, whichever was higher.

"If ony the vendors weren't such greedy !!!!!!!s, we could have the housing market back to rights and start collecting our commissions for sitting on our !!!!!! and doing next to nothing", agreed the surveyors, estate agents and mortgage brokers.

brit1234

Video of the report below

http://news.bbc.co.uk/1/hi/business/8191065.stm


The estate agents are really trying to ramp the bubble again, only this time the money has gone, nothing underpins these house prices no matter what they spin.

dopester

There were few complaints about surveyors overvaluing by home-owners when houses in many areas trebled in value in just 10 years.

Maybe one TV documentary had a stab at it, which was conveniently ignored by the bricks-n-mortar worshipping masses, dazzled by how much their homes were gaining in value each year.

Non home-owners had to endure it. Expected to accept it quietly and take it bravely - which most did.

Any questioning of it.. 'You can't change the markets and there are solid reasons supporting the rises.' ect

About 8% of the English housing stock being exchanged annually from 1997-2007 onwards. Those doing the buying, buying at ever higher prices, causing the entire stock to be valued upwards. (About 4% in 2008 and on course for lower in 2009)

Phil: I think the markets the market, and we get very upset and frustrated that things are so expensive, but things are so expensive. You can't actually compete with open market.

Host: Don't you think it's bonkers?

Phil: It's hugely expensive, but I happen to agree with Brian (Savills) that there are forces in play that are pushing the market on and there's nothing people can do about it.

- Phil Spencer [Date: Approaching the very peak]

http://www.youtube.com/watch?v=atCrSMoX_SA&feature=related

Now it is the turn of home owners to accept the reality in the way non home-owners endured it during the boom.

Merryn Somerset Webb tried her best to make Phil understand, but honestly, from the blank look on his face, he didn't seem to understand any of what she was telling him. That market values are changeable on the way up, and on the way down, for all property, by those setting the prices via active transactions.

Markets are driven at the margin. They are driven by people who buy and those who sell.

So when you get to the point when there are people who must sell, and that will come, when that happens, then prices fall across the board, because not very many people have to be forced to sell at a low price to push prices down.