Undervaluation

kingstreet

rndb wrote: »

I think some of you are missing the point. In a couple of the examples above both sellers had SOLD their respective properties and then it was down valued by the surveyor. It wasn't downvalued on the basis of the estate agents valuation but on the sold price. Surely is worth what someone is willing to pay for it, especially given that the figures quoted are still below the estate agents valuation? The suveyor should take into account the price it was sold at, in addition to everything else.

It's quite possible estate agents create unrealistic expectations aiming to secure the business. These expectations are then demolished when it comes to someone professionally qualified who is representing the other parties in the transaction giving their opinion.

If a surveyor valued the property before it went on the market, this would be reduced, if not eradicated completely.

WellKnownSid

rndb wrote: »

I think some of you are missing the point. In a couple of the examples above both sellers had SOLD their respective properties and then it was down valued by the surveyor. It wasn't downvalued on the basis of the estate agents valuation but on the sold price. Surely is worth what someone is willing to pay for it, especially given that the figures quoted are still below the estate agents valuation? The suveyor should take into account the price it was sold at, in addition to everything else.

The surveyor DOES take into account the price that property and other similar properties have been SOLD for...

They will not take into account the OFFER that may have been made against the property to trigger the valuation in the first place.

A house isn't SOLD until the agreed price changes hands. Then it will form part of future valuations.

ILW

My house is worth more than all the others in the street.

Thrugelmir

rndb wrote: »

Surely is worth what someone is willing to pay for it,

How many people buy without the need of having a mortgage?

noodle

rndb wrote: »

Surely is worth what someone is willing to pay for it,

Nope, it's worth what someone is able to pay for it.

MrsMoo2U

Thanks Sid, I do realise about signing contracts now but I was quite naive. I was also told after the fact about the problems with surveyors and new builds. The thing is though I was the only person who had the flat down valued. The next block was finished recently and they all sold (and were valued at the asking price)for 5% more than I bought mine for. Bad enough for sellers when this happens but it soul destroying for buyers who are trying to get onto the housing market ladder.I agree that lenders have to protect their investment but I think that they are, in fact going over the top. Rather than rejecting loans I think that this is another way of not having to lend money by stealth.