Surveyors Valuation Very Low

WheelieWood

[Bumped this up from the buyers thread as my Mortgage Advisor has really placed a doubt in my mind]

We heard back, at lunch-time today, that our mortgage company's surveyor has valued the property we're buying at £70,000 less than the agreed sale price (225K vs 295K) and this doesn't include any retentions for work they feel needs done. I knew the survey valuation would come back low, because they all seem to be low at the minute, but not that low.

We're fortunate in that the mortgage we're taking out is less than 50% of the total, so the mortgage company isn't reducing how much they'll lend us. However, having viewed several houses in a similar price bracket, we've no reason to believe that the house is over-valued (or by nowhere near 70K) - Even our Mortgage Advisor felt it was a lot of house for the money.

So I have to ask exactly how do surveyors produce their valuations?

Could the fact that its a 'period' property (1850-ish) account for any difference in the valuations? We're happy that part of the price we're paying is for 'character' but would a surveyor take that into consideration.

Something that strikes me as odd is that our mortgage application was only submitted (online via Mortgage Advisor) on Tuesday, so that meant the surveyor must have been contacted by the mortgage company, he/she must have contacted the seller, surveyed the property and submitted his report all within one day! Add to this the fact that the mortgage company won't tell my advisor who carried out the survey...

Quite frankly I don't want to get into the whole valuation debate with the sellers as I really don't believe that they'd have any problems finding another buyer at the same price. I really do feel that the surveys valuation is too low rather than the property price being too high.

Until I spoke to our Mortgage Advisor again, I wasn't sure I even cared about the valuation as I can't see us moving again for 20+ years, if we get this house. However, he's raised the scenario of having to move within a few years for some reason that we can't forsee now and has recommended paying for our own independent survey to get another opinion on the value of the property.

Any ideas/advice?

ciano125

Just use it as a tool to help you pay less for the house. If anyone else comes along wanting to buy it, they'll probably have a valuation done on it too, and theirs might well come back at the same level. He's the professional, trust his judgement and don't throw all your hard earned money away!!

Doozergirl

I think it wouldn't hurt to have second opinion

Character will add value in certain places like London especially but where I am now, in the sticks, it doesn't count for a great deal tbh.

It's a big investment and whilst in the long run it may notmake a great deal of difference to you, you can have a full building survey to help you know what will need doing in that time and with it get a second opinion on the price.

VIGILANT22

The actual amount you're borrowing is not affected so I'm not clear on what you want to know/the problem is..other than buying a house lower in value than what you thought?!

Eric1

WheelieWood wrote: »

..
Something that strikes me as odd is that our mortgage application was only submitted (online via Mortgage Advisor) on Tuesday, so that meant the surveyor must have been contacted by the mortgage company, he/she must have contacted the seller, surveyed the property and submitted his report all within one day!

Can you ask the seller if the property was ever surveyed?

WheelieWood wrote: »

..
Add to this the fact that the mortgage company won't tell my advisor who carried out the survey...

I suspect it was Mr Zoopla, Ms Mouseprice or the like

WheelieWood

VIGILANT22 wrote: »

The actual amount you're borrowing is not affected so I'm not clear on what you want to know/the problem is..other than buying a house lower in value than what you thought?!

Its just the chance that the surveyor is right and we could be overpaying by a large amount if going ahead, which could leave us stuck if we needed to move again sooner than we expect.

I guess I know the answer is to have the second valuation done even if it is going to cost us more money.

If it agrees with the first (& because I'm fairly certain the seller won't drop their price by very much) we'll have to decide if we're happy overpaying or would rather walk away from a house we love.

WheelieWood

Eric1 wrote: »

Can you ask the seller if the property was ever surveyed?

I suspect it was Mr Zoopla, Ms Mouseprice or the like

I only have contact through the seller's EA and I suspect they'll be closed for Easter now (though I'm going to try calling them tomorrow, just in case).

I have similar suspicions about the surveyor myself, especially as they've requested separate damp and electrical surveys to cover themselves.

G_M

I only have contact through the seller's EA

You mean you don't know the address of the house? Or it's empty? Or there's no doorbell?

they've requested separate damp and electrical surveys to cover themselves.

Very common practice. Surveyors are not electricians or damp specialists.

VIGILANT22

Why is it people who appoint surveys and when they come back lower than they expected start "blaming" surveyors....and for some on here even questioning if the property was ever surveyed!...rolls eyes...Are you aware of a surveyors job and the risks that go alongwith it....Why would anybody put their career (they are professionals) on the line by making up a fictious report....this is an totally ignorant remark....If he valued it at 295k and when you some years down the line went to sell the survey came back at 225k ...you'd be jumping up and down at that point saying the original surveyor had made an error!!

What about during boomtime, so many of you all paid way over valuation then and nobody was questioning surveyors then..in comparison with the prices being paid they undervalued then as well did they not!?.......Lenders requirements are based on what is a reasonable (quick) sale price for this property in a market where house prices have fallen and could be set to fall again....

As for "I have similar suspicions about the surveyor myself, especially as they've requested separate damp and electrical surveys to cover themselves.".....and if they didn't and you later had a problem!!.....

Eric1

VIGILANT22 wrote: »

Why is it people who appoint surveys and when they come back lower than they expected start "blaming" surveyors....and for some on here even questioning if the property was ever surveyed!...rolls eyes...Are you aware of a surveyors job and the risks that go alongwith it....Why would anybody put their career (they are professionals) on the line by making up a fictious report....

Well, I've seen a few threads about "drive by" surveys. Not sure if it needs a professional surveyor.
In the end, it depends on the mortgage company I guess.

VIGILANT22

What other type of surveyor could it be!!...Mortgage lenders have very strict criteria as to the panel of surveyors they appoint and instruct... and who are all members of The Royal Institution of Chartered Surveyors...