135k offered...surveyed at 130k

regularsaver1

would you be willing to pay for the valuation with a survyor so your buyer can buy for £135

if not looks like the buyer would have to buy at £130k

AndrewSmith

Depending on the lender it is doubtful that they will accept another survey arranged by you or your buyer independantly of them.

At they very least they would expect your buyer to pay them for another valuation to be instructed from one of their panel of surveyors. Don't forget that the valuation is for the benefit of the lender therefore they can choose who carries it out.

This choice is usually determined by reciprocal business between the lender and the parent company of the surveying firm.

Also another surveyor is likely to use the same comparable evidence used buy the initial valuer and is likely to come up with the same value (give or take) especially once he realises that it has already been valued once at £130,000.

Your best bet is for your buyer not to demand that the value is increased but politely approach the lender with comparable 'sold' evidence backing up his/your claim that it has been undervalued by £5,000.

Also, never forget the possibility that the EA may have overpriced it in the first place.

missey_2

so is this indicating that property is sold at a survey price or lower...regardless of the deposit a prospective buyer has

AndrewSmith

The property can be sold for whatever the buyer wants to pay for it. More or less than the valuation.

The lender however will only lend based on the purchase price of the valuation whichever is the lower. If he has a 20% deposit and the lender will not go over an 80% mortgage then he will only get 80% of £130,000 from the lender.

At the end of the day the valuer has valued the property at £130,000. You can try with the buyer to get the valuer to change his mind however this is unlikely.

It now depends on how much the buyer wants to buy the property. He has been told by the lender's valuation that it is worth £130,000, you are still asking for £135,000.

Ask yourself this.

How much do you want to sell it to this buyer?
Do you want it to go back on the market and maybe not get an asking price offer again?
Do you wnat to run the risk of it being downvalued again by another buyer's valuation?
If there is no chance of getting the valuer to re-consider why not think about meeting the buyer halfway to secure the deal?

missey_2

can he give me 5k for carpets + curtains etc and put down 15% of 130k ?

AndrewSmith

I would say that one is aquestion you need to ask the buyer.

Looking at it from a personal point of view and bearing in mind the advice given on these boards when the situation is reversed:

If I were buying a property at £135,000 and my valuation came back at £130,000, my next move would be to approach the agent regarding re-negotiating the price based on the survey.

At the end of the day it all depends on how much you need to attain to move yourself, how much the buyer wants your place and how much you want to keep the buyer.

To be honest, I dont see any benefit in him paying you 5,000 carpets and curtains. If he has the 5,000 in cash spare then it would be simpler for him (should he want to) to simply take the mortgage based on £130,000 valuation, then make up the difference to a purchase price of £135,000 himself.

The solicitors would not really be comfortable with £5,000 for carpets etc as this cannot really be substantiated on a purchase of £135,000.

Andy

AndrewSmith

Also you seem to be assuming that the buyer will still want to pay £135,000. He may well not want to pay the extra £5,000 due to the survey.

Have you had any feedback from the buyer since the survey? What are his intentions?

mariauk

Hi

I need to obtain a probate valuation on my Mum`s house. Do I use a surveyer or an estate agent and do either of them charge? Thanks for your time.


Maria

Jorgan_2

A surveyor will charge for a probate valuation, some EA's charge others don't. We charge £120 + VAT, but this is refunded on completion, if we sell the property.

You will usually only need an EA's valuation for probate.

mariauk

Thanks Jorgan :A

Sorry to the OP for butting in on your thread :cool: