Are there any surveyors out there?

Julfulbub

I don't mean to exclude those who are knowledgable on this subject who are not surveyors - and of course your opinions are worthy and appreciated but I wanted inside knowledge as to what is taken into account when a property is valued.

A few months ago we agreed a sale of our house but it all fell through as they surveyor valued us £18k short of the agreed price. This was less than what we paid for it in 2004 despite vast improvements being carried out throughout. Our buyer did challenge the valuation and comparable were provided but they surveyor refused to change his valuation. Needless to say our chain collapsed.

I can understand how the surveyor arrived at our figure, I think he took the sale price of the house next door to us which sold in Jan 2008 and applied the 15% drop we all hear about. This house sold without double glazing or central heating and needed a lot of tlc but this doesn't seem to considered.

The house we were in the process of buying went through valuation fine. However if I apply the local 2007 sale prices and apply the 15% drop it too should have been undervalued by circa £20k but it wasn't.

So I wanted to know what other factors would be taken into consideration? Is it true when people say the lender has a influence over the valuation? I had resigned myself to giving up trying to sell our place but my boyfriend wanted to give it until the end of September. Now someone else has put an offer in and my boyfriend wants to accept and see if we get through valuation. If not, we know to give up on the idea. What are the chances of his happening though?

koexelek

Julfulbub wrote: »

Is it true when people say the lender has a influence over the valuation? ?

I have heard rumours that some lenders are knocking 10% off the surveyors valuations to be on the safe side.

Client of mine applied for a remortgage recently. The surveyor told him to his face ( without being prompted or asked). that it was worth " at least £550,000.
The official survey report from the lender came back at £500,000 :rolleyes:

Nit saying this happens all the time, but the lenders seem to be keen for surveyors to value things as low as possible these days.

ess0two

koexelek wrote: »

I have heard rumours that some lenders are knocking 10% off the surveyors valuations to be on the safe side.

Client of mine applied for a remortgage recently. The surveyor told him to his face ( without being prompted or asked). that it was worth " at least £550,000.
The official survey report from the lender came back at £500,000 :rolleyes:

Nit saying this happens all the time, but the lenders seem to be keen for surveyors to value things as low as possible these days.

Legally can lender override a surveys decision.

guppy

ess0two wrote: »

Legally can lender override a surveys decision.

Well they're paying the surveyor's wages...and there's no law forcing them to lend money.

chickmug

ess0two wrote: »

Legally can lender override a surveys decision.

I have never known it.

chickmug

Sorry to repeat this post but it could help in this situation.

WHAT IS MY HOME WORTH, WHAT TO OFFER, DOWNVALUATIONS - TIPS

There are so many posts asking all of the above so I have attempted to encapsulate all the usual advice backing one place. But when asking these questions it is better to include a Rightmove link as you will get more responses. The purpose of this post is to give guidance on establishing the value of a home and in a similar way to how agents would do it. However agents will always have that last bit of the jigsaw, from local knowledge and experience, on which no one can write help notes.

You need to do some very through homework the same as a good agent should do. You need to ignore those who say offer 20% or even more lower without justification. When thinking of offering your course of action must be logical especially if you are trying to outmanoeuvre agent, seller or provide evidence to a valuer. ‘Silly offers’ are met with ‘silly responses’ by agents and sellers when there is no evidence provided to justify your figures.

Bear in mind that the agent WILL know full well if the price is: -

1) Sensible.
2) High because of a deluded seller.
3) A knock down price due to an urgent sale being needed.

But will the agent tell you how they feel but many will give a clue. But firstly you need to establish what the house sold for last time. You need to go on the ‘Prices Sold’ web sites of which there are many such as Rightmove but sometimes you may need to look at more than one as no site is 100% up to date. Others include mouseprice.com, Zoopla.co.uk, propertypriceadvice.co.uk. A site useful for seeing price drops in an area is propertysnake.co.uk. The Land Registry is likely to be more comprehensive but will cost £4 per search.

http://www.rightmove.co.uk/
http://www.mouseprice.com/
http://www.zoopla.co.uk/
http://www.propertypriceadvice.co.uk/home/
http://propertysnake.co.uk/
http://www.landregistry.gov.uk/wps/p...roperty_Search

In addition, to the above stage, you are advised to look at price history of homes on the market by using the Firefox Browser with the Property Bee ‘add’ in which works with Rightmove. You will need to register as a user, with Property Bee, to look at all the price history, of all homes on the site, from the moment they went on sale through all the changes including pricing and when marked, or unmarked, as ‘Under Offer’.

http://www.mozilla-europe.org/en/firefox/
http://www.property-bee.com/

Then since the last sale have there been any improvements, or extensions that could have an affect on today’s value. Any of this type of work can add from zero (like decorating in garish colours) to the full amount spent (good well built extension or garage) on the value.

Now go on the ‘House Price Calculator’ web sites such as: -

http://www.nationwide.co.uk/hpi/calculator.asp
http://www.hbosplc.com/common/includ...ulator_lbg.asp

Some look at Zoopla and Mouseprice.com but some of the figures are all over the place and also bear in mind if you are negotiating with an agent they would laugh at you if you use comparison from these types of sites. So the Nationwide and HBOS calculators are the most respected.

By now you should have a good ideas of the price and to fine tune it you need to go on the main property web sites - rightmove.co.uk, teamprop.co.uk, findaproperty.com, globrix.com, primelocation.com. to look at comparables. But make sure the comparables are realistic with regard to size, condition, area, etc.

http://www.rightmove.co.uk/
http://www.teamprop.co.uk/index.aspx
http://www.globrix.com/
http://www.findaproperty.com/
http://www.primelocation.com/

So now you should be getting a more detailed picture of the value.

Next is to make the offer which means you need to put your case across as being a serious buyer with by covering the following points: -

1) That you have a MIP/AIP - if you haven’t get on the case.
2) If you have a bigger deposit than the minimum that will make you be seen as a better buyer.
3) Explain in some detail about any chain that you are in and is being formed. But it must be complete otherwise the agents would not consider offers.
4) Say that you have a solicitor appointed, who is waiting your instruction, once you make a decision to buy somewhere.
5) If you don’t intend having more than a basic valuation tell the agents as they will like that although you must make sure that is the right decision. You can always change your mind once the sale has been agreed! Agents do NOT like the repercussions after Homebuyer Reports & Structural Surveys
6) Say you are able to complete within the time frame to suit the seller.

So the agents should be attentive as they will now know you are being deadly serious and then make the offer explaining thoroughly the homework you have carried out but do confirm by email to the agent.

Bear in mind some of my other thoughts from experience: -

1) When making really silly offers even if you agree at a sensible/acceptable price you could be seen as unreliable and someone who may pull out if you find a better bargain elsewhere. So the seller may feel they are better off finding a new buyer - one who hasn't felt they were paying too much.

2) Do NOT form any emotional attachment to the seller or the agent.

3) Do not waffle when making the offer thus NOT giving away your hand.

4) Always go in low. Experience shows me those that start low end up paying less than those who try and make a fairer offer.

5) So go in low and if you do a deal great - but if not you must have the courage to walk away. There will always be another home where the seller may be more desperate that you will get there, with a bargain, but have patience.

6) Remember the agent will try and charm you or bully you so keep very very focussed.

Shout if I have mised anything?

poppysarah

chickmug wrote: »

I have never known it.

And if it was going to happen it wouldn't be anytime soon.

ess0two

guppy wrote: »

Well they're paying the surveyor's wages...and there's no law forcing them to lend money.

No, the vendor is paying the surveyors wages,at least last time i had a survey it cost in excess of £500.
For this reason alone the surveyor should be impartial and professional.

Makes a mockery of having a survey otherwise.

chickmug

guppy wrote: »

Well they're paying the surveyor's wages...and there's no law forcing them to lend money.

Do you mean the cost of the basic valuation?

Richard_Webster

Sorry to repeat this post but it could help in this situation.

WHAT IS MY HOME WORTH, WHAT TO OFFER, DOWNVALUATIONS - TIPS

Wow, Chickmug! - that's really comprehensive, evidently from lots of years experience in the business. Definitely advice to be recommended for people to follow.

guppy

chickmug wrote: »

Do you mean the cost of the basic valuation?

I was just pointing out that it would seem difficult for some mortgage surveyors to survive without work from the banks