Undervaluation

la_Revolution

Hi All

I hope that someone can help

House sold STC 295K Valuation by buyers mortgae provider 280K

I have sold my house on STC and have had notification that the buyers valuation has come way under the price that we agreed upon... i am now looking at a 15K difference and cannot undertsand why the valuation has been so low.

The house next door sold two years ago for the same amount as ours has been valued at but has less living space but a larger garden. etc etc

Irrespective of all this I want to know how, mortgage valuers come up with their values.

I have done my own research and this would suggest that My property should be in excess of 330K

It has been suggested to me that valuers are requested to under value properties to ensure that their investment (i mean the loan) is more than secure.

Third party valuers are also too scared of litigation from the lenders and are also undervalueing. leaving people like you and I who had in pricipal a fair agreement for sale back to square one.

This Valuer has caused me a lot of hastle and stress as I now have to find another buyer who in turn may get a better mortgage valuation or find a cheaper house to purchase so that I can sell my property at an undervalued price to be in line with HIS VALUATION OPINION.


In my opinion the whole system needs to be overhauled and the seller should be entitled to challenge the banks and private valuers comments.

It is again the ordinary hard working citizen who has to pay for the losses made by greed of the banks and lending institutions.

Apparently I am unable to challenge or even request how his BIASED opinion was reached but I am the one who ultimately has to take the loss to ensure my byuers' lenders positive equity

How fair is that.....

getmore4less

The house is worth what someone can/will pay for it.

The buyer decides what it is worth.

Get a new buyer with a bigger deposit if this buyer can't buy it at the price you want.


How much smaller is the place next door, sold at peak and most areas have gone down since then, I know your area and house in particular are different but buyers won't see it like that.

If you realy believe that your place is worth at least £330 based on comparisons why are the people that are buying those places at £330 not buying yours?

WellKnownSid

la_Revolution wrote: »

I have done my own research and this would suggest that My property should be in excess of 330K

If that's true, then tell the buyer to take a running jump, put the house back on the market at 330k and don't sell for any less!

kingstreet

A surveyor will use evidence of the recent sale of comparable properties in the vicinity. His responsibility is to ensure the property is worth what is being paid and is suitable security for the mortgage.

IIRC surveyors also follow guidelines issued to them by the RICS in the "Red Book" which would suggest a commonality of approach.

If you decide to cancel the sale and re-market, it is possible another surveyor might take an opposite view, or he may take the same line as this surveyor.

brit1234

la_Revolution wrote: »

Hi All

I hope that someone can help

House sold STC 295K Valuation by buyers mortgae provider 280K

I have sold my house on STC and have had notification that the buyers valuation has come way under the price that we agreed upon... i am now looking at a 15K difference and cannot undertsand why the valuation has been so low.

The house next door sold two years ago for the same amount as ours has been valued at but has less living space but a larger garden. etc etc

Irrespective of all this I want to know how, mortgage valuers come up with their values.

I have done my own research and this would suggest that My property should be in excess of 330K

It has been suggested to me that valuers are requested to under value properties to ensure that their investment (i mean the loan) is more than secure.

Third party valuers are also too scared of litigation from the lenders and are also undervalueing. leaving people like you and I who had in pricipal a fair agreement for sale back to square one.

This Valuer has caused me a lot of hastle and stress as I now have to find another buyer who in turn may get a better mortgage valuation or find a cheaper house to purchase so that I can sell my property at an undervalued price to be in line with HIS VALUATION OPINION.


In my opinion the whole system needs to be overhauled and the seller should be entitled to challenge the banks and private valuers comments.

It is again the ordinary hard working citizen who has to pay for the losses made by greed of the banks and lending institutions.

Apparently I am unable to challenge or even request how his BIASED opinion was reached but I am the one who ultimately has to take the loss to ensure my byuers' lenders positive equity

How fair is that.....

What skills qualifications give you the right to say the surveyor is wrong and you are right?

House prices are falling and they have been falling for some time. You can sell for what you like but don't expect to get offers at that price and don't expect the surveyors to over value your property on your say so.

Your property is not undervalued you have just overvalued it. Prices will continue falling from now on so you need to get realistic if you ever want to sell.

It looks like you are influenced by greed over sane lending and housing fair valuations.

ViolaLass

Just because it's been valued at £280k doesn't mean you have to agree to sell it at that price.

brit1234

ViolaLass wrote: »

Just because it's been valued at £280k doesn't mean you have to agree to sell it at that price.

No but in a falling market market where house sales are half that of a couple years ago you are unlikely to get more than the valuation and a possibility of lower.

Trollfever

If you think that your property has been undervalued by £50k you could pay for a valuation to confirm this view,

http://www.rics.org/

cardinalbiggles

Interesting the number of postings now on this forum about how surveyors are undervaluing houses.... Kind of suggests that its the market in decline, not the surveyor undervaluing.

_Andy_

la_Revolution wrote: »

The house next door sold two years ago

There you go then.

PS presumably things wouldnt be so unfair to you if the property you were buying had been "under-valued"

gem2201

I have to say we are in the same boat we had 3 estate agents value our house at £350000, £360000 and £370000 we put it on the market at £365000 and accepted an offer of £355000... Surveyor comes along and values at £330000 so no I don't agree that the house prices are falling. The Surveyors are scared that they will be sued by mortgage companies if something happens.

It's not fair and it should NOt be allowed.