Advice on low valuation on house we are selling

Bungly_2

Hello

I am currently selling my house and the buyer had their valuation a couple of weeks ago. The valuation report has come back and it says that the house is worth about £20k less. Our estate agent has provided proof of other comparable sales that back up the offer price, but the surveyor will not change their valuation.

Has anyone any advice on what to do?

Thanks :beer:

bryanb

It sounds like a problem for the buyer.

Fire_Fox

Ask your buyer to try another lender or start looking for another buyer.

bmunky7

How comparable and recent are the comparables that support the offer price? If the offer price is absolutely a realistic valuation then its up to the buyer to find more cash a different lender or a different house! Of course you might want to be a bit flexible on the price if it will secure a fast sale and the buyer offers to stump up to go above the valuation.

Milliewilly

Every week there are posts on here about Valuers undervaluing houses even on offers less than the asking price. They are acting for the Banks who are trying every trick in the book not to lend.

Even though you have comparables people will be along in a minute to say the Valuer is definately right and don't 'pay £20K too much' :rolleyes:.

Bungly_2

Thanks for all the quick replies. The buyer has offered to meet us half way (£10k price reduction).

One think we thought of was for us to get an independant valuation done. But then I suppose it depends on whether their valuation is effecting their mortgage - but if they can meet us half way, sounds like it isn't?

We thought of initially offering £3k off and go up to a max of £5k off? We have found somewhere we want to buy, so would prefer not to go back to square one.

polyp

We recently had our house undervalued by a similar amount. If you don't mind meeting them half way and have found a house you like, so are pressured for time, it might make sense. We decided to hold out and have now had a better offer anyway.

Valuations are subjective. If the buyer is willing to pay the extra to secure a house of their dreams, or the seller is willing to drop the price then it fair enough, but when mortgage companies refuse to lend the extra why should the seller have to help the buyer out? Effectively giving the buyer money to help them buy? There is definitely a problem at the moment with undervaluations.

Blacksheep1979

but what happens when the next prospective buyer tries to get a mortgage and it comes up 20k short and then the next etc - at some point you have to face facts that it's not just the buyers problem but the sellers as if they can't get someone with the cash/a bank backing them then they aren't moving anywhere. Pass the loss on up the chain to the next house you're looking to buy.

Fire_Fox

polyp wrote: »

Valuations are subjective. If the buyer is willing to pay the extra to secure a house of their dreams, or the seller is willing to drop the price then it fair enough, but when mortgage companies refuse to lend the extra why should the seller have to help the buyer out? Effectively giving the buyer money to help them buy? There is definitely a problem at the moment with undervaluations.

The lender is probably putting far more money into this property than the prospective purchaser is, they have every right to be cautious. A property is only worth what someone is willing AND ABLE to pay. The house is only worth £20K more than the bank says if someone actually comes up with the cash and the sale completes.

polyp

As our estate agent told us, different mortgage companies use different surveyors, and it is very possible the next surveyor will come in with a different valuation, especially if the agents are forwarned and can use different/better comparables. Plus the next buyer might have the cash to not mind the valuation so much. But yes, it is a gamble. Like everything in house selling. Even getting a good offer doesn't make me leap with joy now...just trepidation.

olias

An obvious point (for the seller at least) that seems to have been overlooked, is how much is the property for sale for, and therefore what percentage the £10K that has been suggested equates to. Theres a big difference between accepting a drop of £10K on a £500000 detached house and dropping £10K on a £90000 terrace!

That aside, the bottom line is if the seller is confident of the value, and can afford to wait for a buyer to come along who will pay that price, then he should stick to his guns and do that.

Olias