Under valued survey

JA1000

Who was it? Esurv???

VIGILANT22

[QUOTE=RX-78

I'm a professional so I know how damaging a complaint to professinal body can be. But if surveyor cannot justify his figures, and he is damaging our livelyhood & costing several thousands in pounds, potentially loosing the sale on top, I feel I should complain. Is that unjust?[/QUOTE]

Hmm..Do you not think a surveyor is aware of what you have stated above....Do you really think he is going to risk his livelihood by "down valuing" your property...as for the comment "I get a feeling even when I do catch the surveyor he'll be too bigheaded to justify is valuation."

I can see who the big headed one is here and it is not the surveyor...

PayDay

RX-78 wrote: »

I've been calling the surveyor since yesterday with no joy (and EA has been trying since 5 days ago), always on answer phone. Funny how they had no problem answering the phone when they needed to arrange the survey. I get a feeling even when I do catch the surveyor he'll be too bigheaded to justify is valuation.

How does the surveyor know before they answer the phone, if the person ringing is going to book a survey or is a seller complaining about the valuation of their house?

PayDay

Milliewilly wrote: »

No proof = no reduction.

= No sale (It's a buyers market now, not a sellers)

In this case, a glimpse of the relevant part of the survey wouldn't help the seller because the OP seems to be saying that the flat doesn' have faults, but is simply overvalued compared to the other flats that have sold (repos).

RX-78 wrote: »

I would understand if there was structural problems or any other faults but apparantly there were no problems.

PayDay

RX-78 wrote: »

In my case the buyer isn't happy either - he disagrees with the surveyer having looked at the land legistry & current market prices and knows I will not sell it at the survey price.

Land Registry don't show reposession sales. Fortunately for the mortgage lender, the surveyor will have these details.

If your buyer still wants your flat at a price that is over the valuation, he can use his own money and take the risk himself. I'm not really sure why anyone would want pay more than a property has been valued at.

If the buyer can't or won't pay you the over valuation and you won't sell at the valuation price, then you will have to put the flat back on the market. Although if you manage to find anothr buyer, you may end up with the same problem with the next surveyor.

Thrugelmir

RX-78 wrote: »

I didn't know the lenders could artificially decrease the value. Is that legal? Surely the buyer who has paid for the valuation has the right to an impartial valuation, not the one that suits lender.

For a straight forward property valuation where a mortgage is involved a surveyor is working for the lender not the buyer. The buyer pays fees as part of the mortgage application.

The valuation is for the lender to base their decision to lend on, not for the buyer to obtain the maximum mortgage possible.

confusedroast

We had this last year when we were going to sell - surveyor for ROyal Bank Of Scotland undervalued our property by £25k!!!!! Apparently RBOS were undervaluing all properties in london to save their !!! - we took our property off the market I wasnt losing that on it!!

lovethymini

Milliewilly wrote: »

So if you had an insight into the industry why did you offer £11K too much in the first place to be corrected by the valuation surveyor?

Hello Milliewilly,

An insight into the industry means that I am aware of the paperwork and processes that surveyors carry out, ie the research behind valuing, not the current market value of an individual property.

RX-78

CloudCuckooLand wrote: »

Illegal? LOL. Take a chill pill. IT IS THEIR MONEY.

Re the "right to an impartial value". If its a Homebuyers or Full survey, the buyer will see that, as well as hearing the decision of the lender - that's how we have those threads that discuss "adjustments", because people are reporting the discrepancies.

The survey will form only 1 part of the Lender's decision in lending what is THEIR money. Just as you don't agree with the surveyors valuation, and that it not illegal, so the Lender taking it into account but choosing to adjust it - or appearing to adjust it - cannot be illegal - its THEIR money, so if they wish to change the criteria they apply, that is up to them. Possible reasons might include;

- they might have met a quota for the region/property type, that means they want to encourage lower LTVs in order to focus their remaining funds on other areas/property types.

- they might have made a commitment to a particular deal, that it turns out is going to cost them too much, so they need to ease the rate of take up.

- they might have direct experience of repossessions in the block, and/or further cases in arrears or about to go to repossession status, that means that a postcode is 'black-flagged' for "extra underwriting" - they don't want to throw good money after bad.

Bottom line, if your buyer wants to use THEIR money, he has to fulfill THEIR criteria. He is perfectly entitled to go somewhere else.


All of which is assumptions/examples, as you don't know the facts yet. Get them.

I'm not suggesting the lenders cant change the amount they want to lend - but that should be separate from the valuation shouldn't it? e.g. surveyor's valuation is 200k but lender will come back to the buyer and say hey'll only lend 190k

I've not had many mortgage before so not exactly sure how it works. But the ones I had agreed a lending price in principle as long as the valuation shows the asset is worth the money they are lending. Can they change the amount lending after survey even if the valuation suggests asset to be of adequate value?

RX-78

PayDay wrote: »

= No sale (It's a buyers market now, not a sellers)

In this case, a glimpse of the relevant part of the survey wouldn't help the seller because the OP seems to be saying that the flat doesn' have faults, but is simply overvalued compared to the other flats that have sold (repos).

Oh I'm trying to see the survey report to make sure the buyer is telling the truth - without it there is no way of knowing if he may be telling me porkies to reduce the price.

Of course it would also be nice to see how the surveyor has come to his valuation. As I am thinking of making a compliant (not decided yet, need to see reasons first), that would also help too