Valuation no where near the estate agents figure?

howd

Hi Everyone,

I wonder if anyone has recently experienced our problem?

The surveyor from our mortgage company recently valued our potential new house and has said it isnt worth the money that it was bough/advertised at?

The house was on the market for £240,000 and they accepted our offer for £230,000. They requested if we could 'complete' on the 15th March so we sent our surveyor in straight away....Monday of this week. We have only be told this evening though that the surveyor has valued our new property at £200,000!!!! Obviously they wont lend us the funds that we need now in order to take the mortgage on?

I've spoken with the estate agent straight away and have taken him the copy of the survey. There was no nasty surprises reported on the suvey like structural damage, he believed it to be worth £200,000 instead of our accepted offer of £230,000?

The estate agent is going to speak with the surveyor in the morning about this HUGE £30,000 pricing difference!!!!!!!

What do you believe would happen next? Do you think that they will have to sell us that house for the surveyors price or would they put it back on the market at the estate agents price, that wouldnt make sense surely?

Any advice would be really appreciated!

Thanks!

brit1234

howd wrote: »

Hi Everyone,

I wonder if anyone has recently experienced our problem?

The surveyor from our mortgage company recently valued our potential new house and has said it isnt worth the money that it was bough/advertised at?

The house was on the market for £240,000 and they accepted our offer for £230,000. They requested if we could 'complete' on the 15th March so we sent our surveyor in straight away....Monday of this week. We have only be told this evening though that the surveyor has valued our new property at £200,000!!!! Obviously they wont lend us the funds that we need now in order to take the mortgage on?

I've spoken with the estate agent straight away and have taken him the copy of the survey. There was no nasty surprises reported on the suvey like structural damage, he believed it to be worth £200,000 instead of our accepted offer of £230,000?

The estate agent is going to speak with the surveyor in the morning about this HUGE £30,000 pricing difference!!!!!!!

What do you believe would happen next? Do you think that they will have to sell us that house for the surveyors price or would they put it back on the market at the estate agents price, that wouldnt make sense surely?

Any advice would be really appreciated!

Thanks!

I think you should haggle the seller down or you will have to find a new lender. Its no secret that much of the housing stock is very overvalued and banks are going to reduce lending incomming years.

May have to wait for more price falls that are comming with this economic rebalance or look at another property.

Estate agents have it in their interest to overvalue property to get more commission. Banks don't have to play ball with this now with the end of cheap money or a shortage of funds.

VIGILANT22

Who is the lender?

howd

Thanks for your reply brit1234. I'm going to speak with the lender tommrow (Natwest) and ask them if they can send another surveyor, do you think they will? Also, if other surveyors value the property at the £200K then surely they'll be obliged to accept at that wouldnt they? What will the estate agent come up with from their meeting tommorow do you think? Surely the surveyor wont change his mind? The estate agent says that he can prove to the surveyor that properties in that area were sold for similar prices over the last 6 months and thats where he got his original estimation from?

Any ideas? I doubt Natwest are going to send another surveyor are they? What if the estate agent can prove his facts to Natwest, how would that work?

Also, surely I cant just go out to another lender this far down the line to maybe find that their surveyor also values the house at £200,000? That would waste a lot of time woudlnt it?

Any help would be great please?

howd

Hi Vigilant22,

The lender is Natwest.

Any advice, help or comments would be welcomed!

VIGILANT22

I'm not going to give you false hope....is this a new build?....if so they are being valued at resale price (2nd hand)....doubt the lender will budge...all lenders have the same take on new builds.......

brit1234

howd wrote: »

I'm going to speak with the lender tommrow (Natwest) and ask them if they can send another surveyor, do you think they will? Also, if other surveyors value the property at the £200K then surely they'll be obliged to accept at that wouldnt they?

I would rather trust an surveyor than an estate agent. Plus you want to pay as little as you can to protect you from negative equity now we have passed through this dead cat bounce.

howd

It's a cottage built in the 1920's mid link terrace. Similar properties have been sold recently for similar prices. Natwest used a seperate surveyor firm called Countrywide surveyors. Can I ask them to send some one else?

Please help guys!!!!!

opinions4u

Why do you want to pay £230k for something that has been professionally valued at £200k?

Typically asking prices are somewhere between 10% and 20% over and above what a seller can expect to get.

So is somewhere between £192k and £216k unreasonable on the valuer's part?

Remove emotion from your thinking here. "I really want this house, whatever the cost" should be replaced with "I want this house, but I'm going to knock them down as far as possible using this valuation to achieve that".

howd

I'd much rather pay £200K! I'm just wondering where the vendor can go from here, will they have to drop the surveyors price? They are moving 200 miles away to pick up an existing BandB buisiness. I'm assuming that they have already had the survey done on their next house (b and b)? They were the ones that wanted to exchange on the 15th March?

VIGILANT22

Nobody has to do anything...the vendor can sell (or try) to sell at any price they want and the surveyor..well remember he's working on behalf of the people who are lending you money..it is them taking the risk...all surveyors are erring on the side of caution...you will see similar post thru out this forum....i doubt very much natwest will send in someone else..but no harm in asking