Help! Surveyer values property £20,000 less than I have offered!

brokthebadger

Hi everyone,

I had an offer of £345,000 accepted on a property on market at £360,000. I comissioned independent homebuyers survey (nothing to do with mortgage lender). Surveyor came back today and said that whilst property was sound and well maintained he thought it was only worth £320,000 in current market.

Anyone have any experience of how these situations tend to pan out? For example is there much of a presedent of sellers accepting a greatly reduced offer (£10,000-£20,000) in the light of a survey result like this?

Would be very grateful of advice/thoughts.

Many Thanks

Ian_W

It doesn't really matter if there are precidents [can't spell that word!] as each seller is free to decide what they will accept, just as each buyer decides what they'll offer.

I would have words with the surveyor first and find out on what basis he considers the prop to be worth less. If you're also having a valuation done for a mortgage I'd wait and see what that comes up with value wise. If both value lower then I certainly would seek to renegotiate. If you're not having a valuation done there is still no harm in using the HBers survey as grounds for a lower offer.

F_T_Buyer

It looks like you're paying £20k too much. Simple.

Go back to the vendor and reduce your offer, show them the report if necessary. Unless you think it's value is what you offered!

missile

I guess you made an offer "subject to survey"?

In which case you can re-negotiate or back out. Of course buyer can refuse, so it really comes down to how much you want the house? You obviously were prepared to pay £345K. No one likes to get ripped off, but just because some nerd in a suit valued it at less, does that change your view?

Surveyors generally go by what similar houses have sold for and if no similar houses in the area have been sold recently then his valuation could be way out. For your info, I sold one of my properties in April and it went for £40K over valuation. Valuation for the next house to be sold in that street will no doubt be based on the sale price of mine.

The seller most likely got a.n.other surveyor to value before offering for sale. Get another survey ASAP, before you do anything else.

Woby_Tide

plus the seller also now realises that if they pull out of the sale any future slae will probably get the same valuation too. I'd say it's an excellent piece of news and get whatever advatnage out of it you can

lynzpower

when I bought this place, as SO new build the lender valued it as less than it was for sale for, the HA wouldnt shift, I coughed up the difference which was 3k. Not too big a deal as it means I have more "in equity" however, hes saying "its overpriced in the current market" so I echo Woby, this is a fab negotiating tool, you could be saving yourself a fortune here!