Surveyor has valued the house lower than what it has sold at!!!

michjoe

We had a survey done on our house last week as we have had an offer on it, the report came back to our estate agent yesterday who rang us to say the surveyor had put a value on it £17000 under the price at what it has sold at. The estate agent stated that he was really shocked at this and he has been trying to get in contact with the surveyor for an explanation but hasn't had any luck. We can't believe it as it is priced lower than some of the smaller houses in the area because we wanted a quick sale. Does this happen alot?? Does anybody know?

Sassers

something exactly the same has just happened to OH with remortgage.Five grand under the asking price - what I did was ring Royal Institute of Chartered Surveyors for advice they were very good and helpful. Type RICs into Google....
Also asked loan co. for a second surveyor at no cost to us to come and have another look....they weren'y happy either with the valuation as they'll most def. lose our custom as we are quite prepared to go elsewhere
Hope this helps xx

michjoe

Sassers wrote:

something exactly the same has just happened to OH with remortgage.Five grand under the asking price - what I did was ring Royal Institute of Chartered Surveyors for advice they were very good and helpful. Type RICs into Google....
Also asked loan co. for a second surveyor at no cost to us to come and have another look....they weren'y happy either with the valuation as they'll most def. lose our custom as we are quite prepared to go elsewhere
Hope this helps xx

Thankyou so much for that advice. Our heads have been in bits today, we are probably going to lose our sale over this and so we will have to pull out on the house that we have made an offer on. Our buyers were totally happy with the price of the house and now because this surveyor has valued it £17000 less his mortgage company won't lend him the full ammount he needs. We looked at other houses very close to where we are before we put the house on the market and we put ours at a lower price than those, we really can't understand it.

PropertyGuru

It's unusual until the market turns, then surveyors try to 'cover their !!!' - there was a lot of legal activity during the last crash. You may have to go round again - unless you can persuade the buyer to try and pass the equivalent % shortfall on down the chain. Good luck with it!

michjoe

Definately going to get in touch with the RICS on Monday morning, probably won't be getting much sleep til then though.

Doglover88

Was it a basic survey or full structural? I phoned up my lender asking about borrowing more, on my place thats worth £160k (next door sold for that last week) and they said no problem, your place is valued at £174k according to Halifax or Abbeys list (cant remember which one)

Maybe the surveyor was going by this 'list'?

michjoe

glenbat wrote:

Was it a basic survey or full structural? I phoned up my lender asking about borrowing more, on my place thats worth £160k (next door sold for that last week) and they said no problem, your place is valued at £174k according to Halifax or Abbeys list (cant remember which one)

Maybe the surveyor was going by this 'list'?

Our estate agent told us that the surveyor has compared it to the price of three other houses he is asking the surveyor which three houses they are, but when we look on different estate agents websites 2 bedroomed houses are coming up at the price that he has valued ours at, and they are in worse areas! Ours is 4 bedrooms.

michjoe

I just think it is strange that we asked £115,000 and we got an offer for £110,000 which we accepted then when the surveyor comes out he values it at £93,000 in it's present state but £95,000 with work carried out on it

save_now_for_xmas

i know 2 surveyors who are doing this now and it is what happens as IRs rise and houses become less affordable - the price people get will be lower than the last sale - my friends are having a battle explaining this and are not popular at the moment

their answer is to get the same surveyor / firm to value the one you want? if their view on the market is consistent then they should value the one you want lower than the price you have offered - this should give you some bargaining power and hopefully a reduced price

at the end of the day, the less you have to pay to move on, then the more you have to spend on decoration, furniture or just enjoying your house

good luck

michjoe

save_now_for_xmas wrote:

i know 2 surveyors who are doing this now and it is what happens as IRs rise and houses become less affordable - the price people get will be lower than the last sale - my friends are having a battle explaining this and are not popular at the moment

their answer is to get the same surveyor / firm to value the one you want? if their view on the market is consistent then they should value the one you want lower than the price you have offered - this should give you some bargaining power and hopefully a reduced price

at the end of the day, the less you have to pay to move on, then the more you have to spend on decoration, furniture or just enjoying your house

good luck

Is it not up to the mortgage lender that you are using to arrange a surveyor for you?

save_now_for_xmas

it usually is, but there is nothing to stop you from finding out who the surveyor was and contacting them as to why they thought your property is only worth what they quoted - dependent upon their reply, you could commission them independently to do a basic survey on the property you want which may give you some leverage on the price

have you asked for a copy of the survey on your house? there should be no reason why you can't have one

forgot to say, of course this means you incurring extra cost but if you are looking at a difference of £17k (from memory) it may be worth the risk of £200 for a basic survey