It's suddenly dawned on me!!!

adr0ck

Jewel

use the following tools to see what approx value the house value should be

http://www.nationwide.co.uk/hpi/calculator.asp

http://www.hbosplc.com/common/includes/housepricecalculator_lbg.asp

then go to http://www.houseprices.co.uk/

and put in your postcode and see what has been sold recently thats a similar property

Thrugelmir

Jewel wrote: »

There is nothing for people to buy, as the sellers won't reduce their houses.

Then I suggest God himself has intervened in a divine way to stop the madness.

Genesis 6.1 "and on the 8th day God looked down and created the credit crunch to stop his disciples getting into further debt".

Jewel_2

Thrugelmir wrote: »

Then I suggest God himself has intervened in a divine way to stop the madness.

Genesis 6.1 "and on the 8th day God looked down and created the credit crunch to stop his disciples getting into further debt".

Yep maybe. But from where I see it, it's lenders using the current panicky market to get houses more cheaply.

LydiaJ

It is the lenders trying to decrease their exposure to possible mortgage defaults in which the repossessed property doesn't sell for enough to cover the debt. Considering that mortgage defaults (eg US sub-prime) were one of the things that kicked this crisis off, I'm happy, as a saver, and as a tax-paying-bailer-out, that banks are at least making some changes.

Of course the buyer and seller can go ahead at whatever price they want to agree, regardless of valuation - nobody's stopping them, if the buyer's got the money. But most buyers haven't got the money, and obviously a lender lending money secured on a property is interested in how much the property might sell for at some point further down the line.

ETA What do you mean - lenders "getting houses more cheaply"? Lenders make money by lending it - the bigger the mortgage the more the profit. There's no motivation for lenders to undervalue houses unless they are worried about defaults and falling mortgages.

HAMISH_MCTAVISH

Jewel wrote: »

Yep maybe. But from where I see it, it's lenders using the current panicky market to get houses more cheaply.

No, it's worse than that.

It's lenders pressuring valuers to downvalue houses in order for borrowers to not meet the criteria for better LTV loans, or even at all due to mortgage rationing.

There was a thread on here yesterday about it. The SAME valuer put a value on a house for the bank, and then again for the homeowner. The difference was 20%.

Shocking, borderline fraudulent, and certainly worth filing a formal complaint with RICS over, possibly worth pursuing a legal action as well. Apparently surveyors fear being sued by banks if the value was too high, perhaps it's time they also fear being sued by homeowners if the value is too low.

mewbie_2

HAMISH_MCTAVISH wrote: »

Apparently surveyors fear being sued by banks if the value was too high, perhaps it's time they also fear being sued by homeowners if the value is too low.

Who'd be a surveyor? "You reckon my house is worth 95k you b4stard - right I'm taking you to court". Everyone, repeat everyone, thinks their house is worth more than it really is. And how does the court decide? Judge so-and-so ponders and asks the clerk if the laminate flooring is really worth an extra 50k on the price.

I don't think you've thought this through Hamish.

bo_drinker

When we sold our place the buyers surveyor came round he was there about 15 minutes, for what 300 quid+ the little meter he prods the wall with to check for damp he stuck in a stud plasterboard wall the fool, glad I wasn't paying his wages. Like EA's they have had it good for a long time and now are having to think about what they are doing,, makes a change..

Jewel_2

HAMISH_MCTAVISH wrote: »

No, it's worse than that.

It's lenders pressuring valuers to downvalue houses in order for borrowers to not meet the criteria for better LTV loans, or even at all due to mortgage rationing.

There was a thread on here yesterday about it. The SAME valuer put a value on a house for the bank, and then again for the homeowner. The difference was 20%.

Shocking, borderline fraudulent, and certainly worth filing a formal complaint with RICS over, possibly worth pursuing a legal action as well. Apparently surveyors fear being sued by banks if the value was too high, perhaps it's time they also fear being sued by homeowners if the value is too low.

Very good point. It's not lenders being sensible, yet again it's lenders trying to get something out of it.

As I have very little to lose as I don't mind not selling, I think I will investigate further to see what the exact process is, if I can.

Austin_Allegro

I've got an idea. Why doesn't the government set a minimum value that properties can be given. Say, starting with a million pounds for ex-council studio flats in slum areas, moving up to perhaps a billion for a semi in an nice area. That would be the fixed price, pay it or leave it. They could also force the banks to lend that amount of money, or issue some kind of special government scrip to everyone, to get them buying houses. Since it would be a state monopoly, we could call it 'monopoly money'.

That way the property crash could be averted and everyone could be happy. :rolleyes:






ps to any Labour ministers watching, this is a joke.

ILW

But I just KNOW thay my house is worth more than everyone thinks.