Advice on mortgage valuation survey re undervalueing

agh100

Hi

Am in the process of selling our property and taking a step up the ladder.

The valuation survey is booked in for this week, I am worried it is going to come back with a valuation less than our buyer has offered. In the mean time we have to pay out for our survey on property we are purchasing.

Only reason I am concerned is that these online calculators of a property's value, say that it would have lost around 13% from what we paid 2 years ago.
However we are in a strong area, value's fell slightly and are now rising again. The offer we have accepted is only 2% less than we paid 2 years ago.

Our buyer has 25% deposit, so I'm hoping even if the valuation does come under , the lender would still be ok with it?

Any advice?

Thanks

gemstars

Personally I wouldn't consider paying more than a valuation came back at, but that's just me.

I was very worried the valuation on the house I'm buying would come back under but it didn't :-)

The peoperty I'm buying is valued at 80,000 and was valued at 86,500 in 2007.

agh100

I'm just worried if it does come back under the lender won't lend on it.
It is with Nationwide and on their website they have a thing that estimates the value of your property, which comes out way lower that what our offer is.
But this seems to just apply a regional average and doesn't take into affect difference's within a certain region.

However I'm hoping the large deposit the buyer has will still mean they will lend on the property..

poppy10_2

gemstars wrote: »

I was very worried the valuation on the house I'm buying would come back under

Why? Wouldn't you want to be able to pay less for the house?

ILW

agh100 wrote: »

Hi

Am in the process of selling our property and taking a step up the ladder.

The valuation survey is booked in for this week, I am worried it is going to come back with a valuation less than our buyer has offered. In the mean time we have to pay out for our survey on property we are purchasing.

Only reason I am concerned is that these online calculators of a property's value, say that it would have lost around 13% from what we paid 2 years ago.
However we are in a strong area, value's fell slightly and are now rising again. The offer we have accepted is only 2% less than we paid 2 years ago.

Our buyer has 25% deposit, so I'm hoping even if the valuation does come under , the lender would still be ok with it?

Any advice?

Thanks

Are you basing that assumption on provable actual sold figures or asking prices?

agh100

ILW wrote: »

Are you basing that assumption on provable actual sold figures or asking prices?

hmm, well asking prices seem to be the same or similar to what we paid 2 years ago.
Obviously the actual sale prices are a bit lower, but certainly not as low as the regional average decrease.
We have improved our property over the last 2 years so I'm hoping that will have increased it's value a bit.
It is a difficult one as it is a 3 bed flat, and there is nothing else to compare it too, only 2 bed flats or 3 bed houses..

Thanks

ILW

agh100 wrote: »

hmm, well asking prices seem to be the same or similar to what we paid 2 years ago.
Obviously the actual sale prices are a bit lower, but certainly not as low as the regional average decrease.
We have improved our property over the last 2 years so I'm hoping that will have increased it's value a bit.
It is a difficult one as it is a 3 bed flat, and there is nothing else to compare it too, only 2 bed flats or 3 bed houses..

Thanks

I would guess they will value at about 10% below asking prices in the area.
Regarding the actuals sold I would expect your 3 bed flat to be worth a bit more than a 2 bed flat, and a lot less than a 3 bed house.

agh100

trouble is there is are no other 3 bed flats to look at what the asking prices are for those.
2 bed flats can go for a lot more than our was on the market for, but then they are very modern stylish flats with secure parking etc, which we don't have.

When we were putting the property on the market, we got 3 estate agents round to value it and they all came out with very different value's - differing by 30k!

Scrag_Meister

Similar sitution in that I just had my potential purchase privately surveyed AND mortgage valued and both came in below what we initially offered, by £45k and £15k respectively :eek:. Private survey included a couple of big things but the valuation noted them but did not included them in the valuation.

Vendor's wife says she doesn't want to move below the initial offer, the husband is gonna see the survey and valuation paperwork on Thursday at the estate agents offices, with a view to renegotiating.

Anyone else who considers the house will probably end up with similar valuations and then the same situation occurs again.

All the best with your sale and purchase.

agh100

just out of interest, did your mortgage provider refuse to lend based on your valuation survey results?
or are they still happy to lend, it's just a question of whether you want to pay more than what the survey says?

I wonder if this situation is very common or rare. Maybe I am worrying unnessarily..

Scrag_Meister wrote: »

Similar sitution in that I just had my potential purchase privately surveyed AND mortgage valued and both came in below what we initially offered, by £45k and £15k respectively :eek:. Private survey included a couple of big things but the valuation noted them but did not included them in the valuation.

Vendor's wife says she doesn't want to move below the initial offer, the husband is gonna see the survey and valuation paperwork on Thursday at the estate agents offices, with a view to renegotiating.

Anyone else who considers the house will probably end up with similar valuations and then the same situation occurs again.

All the best with your sale and purchase.