HSBC undervalued my house!

dunstonh

Most people tend to overvalue their properties. HSBC would instruct a valuer on the current economic situation. That effectively sees flats and apartments hit harder in value than houses as they always tend to drop more than houses in a price crash. Plus, house prices are trending down so that is likely to have a factor on it as well.

I would think a 2005 valuation is quite realistic really.

opinions4u

One bedroom flats have a reputation for being difficult to shift, especially when first time buyers are few and far between in the market.

A cautious valuation to protect a lender's security sounds about right to me.

PhylPho

Valuation is a tricky subject, because it masquerades as science but is no more than wetting a finger, sticking it in the air, and seeing which way the wind's blowing.

That's no consolation for the OP, but better to be disabused of the notion of receiving an "under valuation" in his own circumstances than hitting hard against reality in a forced sale situation.

The key difference between home owners and valuers is that the former *always* tend to think in terms of "the going prices in my area", when all a valuer is interested in is the "gone prices" and what trend, if any, is shown by those sales.

Where I live, I'd earn myself a tidy sum by selling now on the basis of all the properties around me with such eye-watering prices. But then. . . why are there all those properties around me?

EAs advise, though not necessarily with much accuracy, and sellers decide, and between 'em the result is thousands of properties on the UK market which haven't shifted and won't shift until reality bites, viz:

A house is only worth what someone else is prepared to pay for it.

Right now, the picture looks to be going back to what that "someone else" thought in 2005. . . but with no guarantee that picture won't re-focus at 2004, or 2003. Or earlier.

So yes, the professional valuer waggling his wet finger does have a pretty good idea of which way the wind is blowing (despite the well-nigh infinite number of posts on MSE from house-price reality denyers.)

MelMcM

How did any of you guys get on querying HSBC/Countrywides valuation?

Ours has been undervalued by at least £10k by comparable sales and if you take into account it's a huge plot, professional renovated inside and landscaped outside and is the biggest property on my estate.

I have now missed out on the 80% deal and would like to know how people have got on in the past please x

Thrugelmir

MelMcM wrote: »

Ours has been undervalued by at least £10k by comparable sales and if you take into account it's a huge plot, professional renovated inside and landscaped outside and is the biggest property on my estate.

What's the market value of your property?

dtsazza

Thrugelmir wrote: »

What's the market value of your property?

Now, that is the entire question, no? :-)

Thrugelmir

dtsazza wrote: »

Now, that is the entire question, no? :-)

Not at all. The OP appears to believe that they know it. £10k is not a significant sum in % terms. Though may be critical to a LTV threshold.

MelMcM

28 months ago before renovation it was valued for mortgage purposes at £192k.

It is now completed and I thought current market considered £185 at least.

Nothing in this village is marketed for less than £190K if it's a 4 bed detached.

neverdespairgirl

"Marketed" and "value" aren't necessary the same at all.

Thrugelmir

professional renovated inside and landscaped outside and is the biggest property on my estate.

You may have spent more on the property by using external contractors than the added value to the property, i.e. the garden.