Homebuyer's report says house is overvalued

Henry_P_Chester

What did the mortgage company value the house at?

bear1969

go for it hahaha a fool and their money are soon parted , ive got a nice car to sit out side it aswell its only worth 5 grand but you can have it for 15 wont get a better deal than that

G_M

ive got a nice car to sit out side it aswell

If it's as nice as you say I'll give you £18K.

Jojo1daffy

I have my house up for sale currently and what my experience has been is that currently no !!!!!! has any idea about any value of any house. A house is worth what someone will pay for it. How many valuations has the house had?? The estate agent valued it at one price, you offered another, the mortgage company valued it and now the surveyor.
The housing market has been stagnant for so long and there has just been an influx of new properties following the HIP cancellation. So you have houses for sale that were valued a while ago and are stubbornly sticking to the higher value they were given, some more newly valued properties are 'testing the market' with slightly higher valuations with the expectation to drop over time, whereas some are priced actually to sell.
In my area similar houses (3 bed semis) are valued between £145k - £175k. I had mine up for sale for £160k but reduced to £158k to compete against the recent new instructions.
If you are happy to pay that amount for your house because you absolutely love it (and can afford it, have got a sensible deal on your mortgage etc) and it isn't a short term buy for you, then I would say go for it (in ten years time will it really matter??). Or maybe haggle down to meet them half way? (£10k drop). But, you agreed your offer with the seller and your mortgage company agreed with that, and it's the mortgage company that would've been picky about the issue - they don't want to be dealing with a mortgage shortfall issue in years to come.
Also does the surveyor actually know the area? He could be referring to the area as in town in general and be making comparisons to properties 10 miles away. I've checked house prices on mouseprice.com ( I believe estate agents and surveyors use this site) and it's made price comparisons of properties in 'nice' areas of my town and the not so nice because obviously it can't distinguish between the two.

Thrugelmir

Bekikia wrote: »

Sorry - should have said we are actually quite far through the process by now, and most conveyancing, searches, mortgage offer etc. have been completed. Advised by our conveyancer today that we are still on track to complete by 23 July. It's just that the surveyor now has thrown a spanner in the works. Thanks for the response though.

By mortgage offer are you referiing to the AIP. Your lender will not issue a formal mortgage offer until a valuation has been carried out.

based on the state of the property

This suggests that money will be required to bring the property up to scratch. Your surveyor may well be doing you a favour.

loobylou232

Usually, you would go back to the EA and tell them the survey ha advised a purchase price of £200K. Have a list ready in your head of everything that requires attention in the property and get ready to start reeling out problems with the house that make it overvalued. Say that in view of these results, you cannot afford to pay more than 200K. Make the estate agent aware that it is the survey results that have recommended this price drop and so any potential buyer will come across the same advice. When the EA asks to see the survey, photocopy some of the reasons (preferably the bigger ones) and the end valuation. I think it wise not to hand over the whole survey. You need some cards on your side. Then wait and see what happens. You may have to renegotiate but many eas will advise the seller to accept the valuation and proceed. they may have to lower their offer on another property in the chain though so you may have to sit it out. Lastly, be prepared to walk away and regret nothing.

Bekikia

I meant the actual mortgage offer, not the AIP. The lender's surveyor went to do the survey and didn't mention that he thought anything was up with the value. It is our own independent surveyor who has advised this. Anyway, many thanks to anyone who has posted. We will try to negotiate down in the week and see what happens - it seems the whole valuation thing is just a very grey area... Cheers

jockosjungle

If the lender is happy that its worth what it is, not sure you should be massively bothered. Have you read the report and seen why he has said that?

R

Thrugelmir

Bekikia wrote: »

I meant the actual mortgage offer, not the AIP. The lender's surveyor went to do the survey and didn't mention that he thought anything was up with the value. It is our own independent surveyor who has advised this. Anyway, many thanks to anyone who has posted. We will try to negotiate down in the week and see what happens - it seems the whole valuation thing is just a very grey area... Cheers

Most people don't obtain a second surveyors report further down the line for their own benefit.

If you start renegotiating the price. Then your lenders offer will become invalid as well.

Valuations aren't a precise science. Many people pay over market value to own their dream home.

Fire_Fox

Bekikia wrote: »

We are in a difficult situation as we really want the house, and our current tenancy ends in 3 weeks, meaning we will essentially be homeless, and we don't want the added hassle of having to find new rented accomodation and go through this whole house buying process again - stress and cost!!

Sorry - should have said we are actually quite far through the process by now, and most conveyancing, searches, mortgage offer etc. have been completed. Advised by our conveyancer today that we are still on track to complete by 23 July. It's just that the surveyor now has thrown a spanner in the works. Thanks for the response though.

Is not having to move into rental accommodation worth £20K to you? Do you have a large enough deposit to find that extra £20K plus fun any work on the property? When you say your tenancy ends, do you mean you have served notice to quit or simply that the fixed term has expired?