valuation

Easypd

Sammy85 wrote: »

Banks are seeminly undervaluing to protect themselves. It may be that the agents are correct in their valuations. Ours was undervalued by £15k.

Either the owners knock the price down to the banks valuation or you will have to find the additional £22k from your own pockets in order to proceed.

If you want the owners to drop the price, you will have to prove to them that its not worth what they are saying. Usually this is done by submitting them a copy of the surveyors report.

You say you have asked the agents to justify the price difference to you? why? are you planning to pay the extra from your own pocket? this seems like an odd move to make.

i have asked them to justify the price in order to try and use info to adjust valuation. NW have asked me to show why it would be worth more than £150 when they sent valuation through and so i have asked them to show how they made such a valuation figure when marketing it. I guess i feel £172 is a good price to get everything this house has, but i am not so happy at paying another £30 per month on a higher rate. i am still shocked that it can have the price £22,000 over market value. Does this really happen on a £172g house? that is a huge % over price.

Sammy85_2

jamiepullen wrote: »

i have asked them to justify the price in order to try and use info to adjust valuation. NW have asked me to show why it would be worth more than £150 when they sent valuation through and so i have asked them to show how they made such a valuation figure when marketing it. I guess i feel £172 is a good price to get everything this house has, but i am not so happy at paying another £30 per month on a higher rate. i am still shocked that it can have the price £22,000 over market value. Does this really happen on a £172g house? that is a huge % over price.

Im sorry, but i really dont understand why you would WANT to pay £22k more than the bank say its worth. A few thousand to get the house i can understand, but £22k is a hell of a lot over the valuation.

Its in your interest to get the owners to drop down to your banks valuation, not to justify why their valuation is right.

Fire_Fox

jamiepullen wrote: »

i have asked them to justify the price in order to try and use info to adjust valuation. NW have asked me to show why it would be worth more than £150 when they sent valuation through and so i have asked them to show how they made such a valuation figure when marketing it. I guess i feel £172 is a good price to get everything this house has, but i am not so happy at paying another £30 per month on a higher rate. i am still shocked that it can have the price £22,000 over market value. Does this really happen on a £172g house? that is a huge % over price.

Of course it happens. The market has fallen, lots of vendors in negative equity don't want to accept what the house is worth and think the fact they need a certain price to move is relevant. They get three valuations and put it up for the top end of the highest valuation, a price that was probably only ever designed to flatter.

Example of flat in my block:
end 2001 purchased for £55K by a BTL investor
late 2006 tenants move out, for sale at £80K
early 2007 larger adjacent flat sells for £87K
2008 vacant; reduced to £70K
2009 tenanted for six months
2010 reduced to £60K

As a result of the vendor's inability to accept the true worth of his investment, that flat ahs been empty for three of the last three and a half years, and the leaseholder has paid around £4K out in service charges, ground rent and buildings insurance!!