House undervalued, but given mortgage..?

puddy

im just not sure about these 'statistics' even the asking prices are less than they were about a year ago, maybe its just my area then. however, if that is the case, why are there so many surveyors valuing 'down'??

Pete111

Mine got valued up! (true story!)

Re prices, I think its clear that on average the UK prices have risen in recent months. Even ignoring the halliwide figures, the Land Registry doesn't lie (at least, one would hope not!)

Re asking prices, these have been shooting up in the SE (monthly London figures for sept were up over 6% according to Rightmove) but obviously there will be regional variations as you say. Asking prices are not that reliable though

I think the reason most valuers are being cautious is the remit from the banks who are desperate to protect their loan books from default. This will no doubt have some knock on impact on prices (ie it's self fulfilling) but buyer sentiment and limited stock for sale appears to be a far stronger factor in many areas currently.

P

Hopejack

Because lenders are being very tight on erm, lending - as a result, they are undervaluing in order to make 100% sure their money is completely safeguarded in the event of a repo/slump etc.

Also, read on here that someone is trying to sue a valuer for 'over valuing' a house they bought - not sure of the circs but obviously that must ring in some valuers' ears - the last thing they want is to get stung - so they are ultra (maybe hyper) cautious atm when valuing!

Coded

I can understand those who say, would you really want to buy a house for less than its value. And obviously 99% of the people wouldnt.

But the thing is, are valuers valuating at the true value?

How were valuers couple of years ago? My sister bought 3 houses and never had a problem with valuers as they valued at what they bought it.

natman

Pete111 wrote: »

jenner wrote: »

but when was that? if its a good few months back then the price will have dropped further.



Umm prices have been rising on all measures for 4-6 months.....

I know new builds are not highly thought of right now but to assume this property will have automatically dropped during this period is a little odd.

Completley agree!!!
Over this year there has been a stagnation with house prices, New houses at the start of the year were being bashed all over the place, but now i have seen developments go up and houses sold!!!

I do think that it is unusual for the bank to give you more than value - this is what Northern Rock used to do with their 125% Mortgage and look what happened!!!
Good luck!

Milliewilly

Finally some common sense opinions that Valuation surveyors are not the last word in getting the correct value put on a house.

dopester

Coded wrote: »

I can understand those who say, would you really want to buy a house for less than its value. And obviously 99% of the people wouldnt.

But the thing is, are valuers valuating at the true value?

How were valuers couple of years ago? My sister bought 3 houses and never had a problem with valuers as they valued at what they bought it.

99% of people would! In my opinion. Except maybe Labour's children who want to pay more, especially if it somehow lets them borrow more from the bank and put up less of a deposit.

The price the seller accepts is usually the market value.

Values are decided by many factors of the market... how much people can actually borrow from banks for a mortgage being a significant factor.

Are valuers valuing at the true value? Values are very changeable. You only have to see that by the fact many areas have seen a trebling in price over just 10 years. That just shows how damn changeable values are.

Factors impacting values... how tight mortgage lending will be, what you are willing to put down to buy it, whether more jobs will be shed in recession, whether repo policy will get tougher, whether interest rates will rise, whether an area loses one of it's main employers... ect ect ect. Values aren't set in stone for 3 months.. they can change... as I expect them to as I believe values are still in orbit and am waiting for the proper crash. Some people chose to buy now.. good luck to you, but I'm waiting for values to crash.

I have no sympathy for someone wanting to pay more than a value given, and who seems to believe values are set by some absolute formula that they can't significantly vary from from one day to the next, given very changeable circumstances of the market.

Does you sister still own all 3 of those homes.. perhaps renting 2 out?

Coded

No, my sister doesnt own the 3 now, only the 1.

Ok, forget about the undervalue at the moment, why was the house 2doors down, with exactly the same spec, comes back with a valuation of £160,000? And both were done through Natwest?