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Surveys and down-valuing
Comments
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It's the homebuyers survey done for the bank to assess what they should be lending on the property. The buyer will not get a mortgage or home insurance for any more than then survey values the house at regardless of whether we agree with the survey or not.
But if the mortgage is for less than the estimated value (i.e not a 100% mortgage) then the buyer might still be able to get the full mortgage they are asking for and pay the amount previously agreed.loose does not rhyme with choose but lose does and is the word you meant to write.0 -
But if the mortgage is for less than the estimated value (i.e not a 100% mortgage) then the buyer might still be able to get the full mortgage they are asking for and pay the amount previously agreed.
Why would the buyer want to pay more than the house is worth?
Kev, if you disagree with the valuation you could contest it. You will have to supply comparable evidence that similar properties to yours have sold for x amount; hopefully the amount that you are asking.
If there are no comparables then you may have to get used to the fact that your house is not worth as much as you would like it to be. The market has experienced a crash over the last two years but sadly a lot of sellers don't want to face up to the reality.0 -
Why would the buyer want to pay more than the house is worth?
The house is worth what someone will pay for it. As I said earlier, the valuation survey is someone's opinion of what it is worth. If the buyer and seller agree on a different figure then it is worth the latter.loose does not rhyme with choose but lose does and is the word you meant to write.0 -
The house is worth what someone will pay for it. As I said earlier, the valuation survey is someone's opinion of what it is worth. If the buyer and seller agree on a different figure then it is worth the latter.
Partly true, but i'd always recommend going with the professional's opinion, unless it is a house which is perfect and you want to live there for a long time in which case you dont have to worry about what you will get for it when you sell. Emotions can skew judgement and hearts can rule heads when it comes to house buying.0 -
The house is worth what someone will pay for it. As I said earlier, the valuation survey is someone's opinion of what it is worth. If the buyer and seller agree on a different figure then it is worth the latter.
It might be worth that figure to that particular buyer and seller - but the bank (assuming a mortgage is involved) will be more concerned with the surveyor's valuation, which will take account of the market generally.
There are many reasons why an individual may choose to pay more than most other people would.0 -
The house is worth what someone will pay for it. As I said earlier, the valuation survey is someone's opinion of what it is worth. If the buyer and seller agree on a different figure then it is worth the latter.
No I believe that is wrong. The price of the house is determined by what the lender will give.
Hence years of loose lending and corruption equals the over valued housing bubble we had, and the credit correction/crunch the price crash.
Prices are set to continue to fall, the banks know it. So they will lend less to compensate.
If you want more for your property then get the buyer to pay out of his/her pocket. The bank has the right to protect its money in a falling market.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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