MSE News: House prices 'to climb further'

Thrugelmir

baileysbattlebus wrote: »

According to the Halifax the index is based on purchase price - not application values.

I think the number of applications makes up the volume of sales.



http://www.lloydsbankinggroup.com/media/word/HPI/Methodologyfromweb130809.doc

Always read properly.

The data refer to mortgage transactions at the time they are approved rather than when they are completed. Whilst this may cover some cases which may never proceed to completion, it has the important advantage that the price information is more up-to-date as an indicator of price movements and is on a more consistent time-base than completions data

The RICS comment was made as there is "gazundering" when buyers offer less for various reasons, thereby forcing a price reduction. Albeit small in terms of the transaction value.

Emy1501

StevieJ wrote: »

I thought the surveyors were responsible to the banks who lend the money who, some say were insisting on 20% under-valuations last year.

There is a difference between last year and pre 2008. Pre 2008 many lenders believed prices only went up and therefore as long as valuations were roughly right it was OK. If someone got repossessed then all they had to do was put the property back on the market as it would have gone up 10%+ in the time since it was repossessed.

Of course things have changed since then and Surveyors are now expected to value at probably up 20% below going rate especially New Builds.

Thrugelmir

Emy1501 wrote: »

There is a difference between last year and pre 2008. Pre 2008 many lenders believed prices only went up and therefore as long as valuations were roughly right it was OK. If someone got repossessed then all they had to do was put the property back on the market as it would have gone up 10%+ in the time since it was repossessed.

Of course things have changed since then and Surveyors are now expected to value at probably up 20% below going rate especially New Builds.

I moved in 2007. Put an offer on a property which was accepted at £6k under the selling price. The surveyor came back at £30k under the selling price!

Asking for a full survey from a Chartered Surveyor saved me from walking into a money pit. Never paid the fee either, as was quite happy to discuss this with the EA in court.

Painting an entire profession with the same brush without substantial evidence is very unwise. Yes there always a bad apple or two but an insignifcant number,

A drive by is fine if the mortgage is for a low LTV. As its the purchaser that is buying the house not the bank. The bank is only interested in its debt. Providing it is covered then the precise actual value is of no interest.

abaxas

Ermmm

This site is money SAVING expert. Or have I missed the point of this?

chucky

Thrugelmir wrote: »

The fundamentals haven't changed.

excellent - let's take the August RICS report and use it for the next 12 months :rolleyes:

Harry_Powell

abaxas wrote: »

Ermmm

This site is money SAVING expert. Or have I missed the point of this?

Yes, so SAVE money by buying now instead of waiting a year and buying at higher prices!!!

nembot

abaxas wrote: »

Ermmm

This site is money SAVING expert. Or have I missed the point of this?

It's not the debt free wannabe forum with the helpful people.

This forum is about the people who make money due to house price increases, then laugh at the unfortunate people who can't get on the ladder.


They're truly gods amongst men, or so they like to think.

Thrugelmir

chucky wrote: »

excellent - let's take the August RICS report and use it for the next 12 months :rolleyes:

Which fundamentals have changed recently to impact the housing market?

abaxas

nembot wrote: »

It's not the debt free wannabe forum with the helpful people.

This forum is about the people who make money due to house price increases, then laugh at the unfortunate people who can't get on the ladder.


They're truly gods amongst men, or so they like to think.

Ahh the housing peadophiles! Raping the young for their jolly now.

Emy1501

Thrugelmir wrote: »

I moved in 2007. Put an offer on a property which was accepted at £6k under the selling price. The surveyor came back at £30k under the selling price!

Asking for a full survey from a Chartered Surveyor saved me from walking into a money pit. Never paid the fee either, as was quite happy to discuss this with the EA in court.

Painting an entire profession with the same brush without substantial evidence is very unwise. Yes there always a bad apple or two but an insignifcant number,

A drive by is fine if the mortgage is for a low LTV. As its the purchaser that is buying the house not the bank. The bank is only interested in its debt. Providing it is covered then the precise actual value is of no interest.

For about the fifth time my comments about surveys relate to mortgage valuations reports which poster I originally responded to was going on about as these are the only reports that are paid for by the buyers for the lenders, A full structual survey is paid for by the buyer and is the property of the buyer. They are two completely different types of reports.

Many buyers still buy properties based simply on a mortgage valuation which often takes about 10 minutes. A Homebuyers report will take about 2-3 hours and a full structal report much longer.