Overvalued or a ridiculously low valuation?

Milliewilly

zappahey wrote: »

Where is the evidence of a biased opinion?

The many posts on this forum (mine included) of sellers giving recent comparables where the Valuation Surveyor is refusing to shift on their lower valuation even though a deal has been struck thereby the property has thus determined its market value in the current climate.

Surveyor from out of town knocks thousands off the accepted price usually for the buyers at maximum LTV thus they can no longer afford to proceed and the banks don't have to lend.

Eric1

Milliewilly wrote: »

The many posts on this forum (mine included) of sellers giving recent comparables where the Valuation Surveyor is refusing to shift on their lower valuation even though a deal has been struck thereby the property has thus determined its market value in the current climate.

The current climate may be fine, but they have to consider the worst case - what if the buyer goes bankrupt next year? Will it sell at the same price? That's one difference between 2006 valuations and the current ones.

Milliewilly wrote: »

Surveyor from out of town knocks thousands off the accepted price usually for the buyers at maximum LTV thus they can no longer afford to proceed and the banks don't have to lend.

So, the banks are being more cautious than the buyers. Another contrast with 2006.

Milliewilly

Eric1 wrote: »

The current climate may be fine, but they have to consider the worst case - what if the buyer goes bankrupt next year? Will it sell at the same price? That's one difference between 2006 valuations and the current ones.


So, the banks are being more cautious than the buyers. Another contrast with 2006.

Exactly my point - the Surveyor is a pawn for the bank they are not valuing houses on comparables at the time of sale.

The average mortgage is 25 years anyone could be in and out of negative / positive equity over that period of time.

If the house gets reposessed the owner is chased for the difference anyway - if the loan is covered the Bank will let it go cheap anyway to get shut regardless of getting the best price for the person who's been reposessed. I have posted examples of repo's not being advertised at final offers.

Here is the link to the house my sister bought that the Natwest valued last April at £225K (from £700K in 2007) - she had to pay for another survey and did buy the house in the end when she fought the Natwest.

The plot is over 1/2 an acre - couldn't even buy that for £225K let alone with a 6 bed house on it!

http://www.zoopla.co.uk/house-prices/south-thoresby/south-thoresby/

Eric1

Milliewilly wrote: »

Exactly my point - the Surveyor is a pawn for the bank they are not valuing houses on comparables at the time of sale.

OK, I'm not a surveyor. Maybe they think of themselves as very well informed realists. Surely they know more about the future values, which also depend on the availability of lending from the same banks.
Your example is convincing, might be an extreme case.