Surveyors & Lendors Deliberately Under Valuing Property

brit1234

Is that the same Phil Spencer who lost his property company :rotfl:

Some property expert

Thrugelmir

Lotus-eater wrote: »

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

Shame there having to work for their money.

I've never ever known 3 estate agents to give exactly the same valuation when I've been looking to sell.

I always pitched the initial selling price somewhere in the middle of the 2 highest valuations.

More likely its the desperation of people selling. Needing the best price to clear debt thats causing overvaluation at the initial stage.

HAMISH_MCTAVISH

Heyman wrote: »

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?

Of course it's not right.

The banks are pressuring surveyors to undervalue at remortgage time so that people don't qualify for the better rates that come along with lower LTV's.

And yet amazingly, here on a money saving site, a bunch of idiots will support such egregious behaviour, where banks are scamming homeowners into pay higher mortgage rates than they should, just because they want to see the crash continue.

Tells you a lot about the fanatical obsession these bears have with crashing the markets, that they'd support such fraudulent behaviour just to further their ends.


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pete80

HAMISH_MCTAVISH wrote: »

Of course it's not right.

The banks are pressuring surveyors to undervalue at remortgage time so that people don't qualify for the better rates that come along with lower LTV's.

And yet amazingly, here on a money saving site, a bunch of idiots will support such egregious behaviour, where banks are scamming homeowners into pay higher mortgage rates than they should, just because they want to see the crash continue.

Tells you a lot about the fanatical obsession these bears have with crashing the markets, that they'd support such fraudulent behaviour just to further their ends.


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This undervaluing of house by surveyors on behalf of the lender has happened before in weak markets and the valuers will also give full valuations in a strong housing market.

They are instructed by the lender to do this not because of the LTV rates but to save the lender's skin if there is any chance of the market falling further. This will either force the vendor to drop their price or the buyer to put down a larger deposit. Either way if the house is repossessed, the lender is better protected against a loss. This explanation was given to me by a surveyor friend when we were talking about both the present correction and the last one back in the 90's.

Thrugelmir

HAMISH_MCTAVISH wrote: »

Of course it's not right.

The banks are pressuring surveyors to undervalue at remortgage time so that people don't qualify for the better rates that come along with lower LTV's.

And yet amazingly, here on a money saving site, a bunch of idiots will support such egregious behaviour, where banks are scamming homeowners into pay higher mortgage rates than they should, just because they want to see the crash continue.

Tells you a lot about the fanatical obsession these bears have with crashing the markets, that they'd support such fraudulent behaviour just to further their ends.


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Hamish I thought that the crash was over... Indices are showing house prices rising.

mewbie_2

to be fair it's not that long since they were valuing one bed flats at 200k plus!! Maybe since the collapse of the banking system they're being a teensy bit more careful.

dopester

HAMISH_MCTAVISH wrote: »

Tells you a lot about the fanatical obsession these bears have with crashing the markets, that they'd support such fraudulent behaviour just to further their ends.

You don't half complain if not absolutely everything is going your way. Those who believe ridiculously over-expensive property is a good thing.

Phil Spencer telling us we can't compete with an open market when prices are shooting up year on year.... but when it turns, we still have to endure everything thrown at it to prevent prices falling.

Mortgage rescue schemes, schemes to pay mortgage interest for x-amount of time, delayed repossession policies, micro-low interest rates to allow the indebted a lot of breathing space with repayments.

What kind of 'open market' is this? One that isn't open at all and can't be maintained for long is my answer.

Cleaver

dopester wrote: »

You don't half complain if not absolutely everything is going your way. Those who believe ridiculously over-expensive property is a good thing.

Phil Spencer telling us we can't compete with an open market when prices are shooting up year on year.... but when it turns, we still have to endure everything thrown at it to prevent prices falling.

Mortgage rescue schemes, schemes to pay mortgage interest for x-amount of time, delayed repossession policies, micro-low interest rates to allow the indebted a lot of breathing space with repayments.

What kind of 'open market' is this? One that isn't open at all and can't be maintained for long is my answer.

Don't always agree with you Mr Ster, but that's a very good point indeed.

dfh

I agree with the above.Double digit HPI is simply not sustainable in the long run.

baileysbattlebus

Surveyors are supposed to bound by regulations regarding valuation. Valuations are carried out in accordance with the Practice Statements in the RICS Appraisal & Valuation Manual.

Market Value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

Projected Market Value is the estimated amount for which a property is expected to exchange at a date, after the date of valuation and specified by the valuer, between a willing buyer and a willing seller, in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion

Projected Market Value for repossession proceedings is the estimated amount for which a property is expected to exchange at a date, after the date of valuation and specified by the valuer, between a willing buyer and a willing seller, in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. This base assumes that during the marketing period the property has been unoccupied and that all furnishings and fittings have been removed. It is further assumed that the vendor (the mortgagee) has to sell the property within a reasonable period to recover the secured debt.

I did read somewhere that the Nationwide had tightened up it's criteria.

I know I'm not a surveyor but I find it hard to get my head round how they reach a value and how 1 surveyor could give you quite different values for the same house. Surely if a house is valued at £80k for lending purposes, it should be valued at £80k and not a £100k when the same surveyor is commisioned by the home owner.

With all of the houses we have bought and sold the valuation came in at the agreed sale price - including the one we bought at the bottom of the last crash.

It's all beyond me.