Poll: undervalued or bang on? What's your house 'worth' according to the surveyor?

MuddledOfMiddlesex

Just recently I've had the house I want to buy undervalued by just over 5%. There is speculation on the web (including this forum) that surveyors are being asked by lenders to downvalue - but equally it might reflect vendors being unrealistic and not realising we're in a falling market. I am nosy - this poll is anonymous but please do add any comments too.

I'm intrigued to know how many other people this is happening to currently so if you've bought/sold recently, I thought it might be useful for others in the same boat to see the outcome. If you could answer the poll and maybe add the following info, as much or as little was you want. Thanks - apart from being personally affected, I'd like to know what people like.

Was valuation on a house you're selling or buying:
Surveyor:
When was the valuation?
Did you go down the 'comparables' route (i.e. providing details of similar sold prices to justify the selling point):
Did the sale/purchase continue?
If the sale completed, was the price reduced downwards or kept the same?
Any other comments?

Here's mine:

Was valuation on a house you're selling or buying: buying
Surveyor: Countryside
When was the valuation: within the last month
Did you go down the 'comparables' route (i.e. providing details of similar sold prices to justify the selling point): To be continued
Did the sale/purchase continue? To be continued
If the sale completed, was the price reduced downwards or kept the same? To be continued

poppysarah

Why do people worry about the valuation?

Oh it's because EA often inflate the price they can get for it to get your business?
Or because its getting a bit close to what they paid for it and heaven forbid someone doesn't make big money on a house sale.

House prices go down as well as up.

MuddledOfMiddlesex

I guess they worry because it affects the loan to value you can get as a buyer - and if you insist on the valuation price rather than the agreed price, then there's a danger the vendor will be 'insulted' and pull out.

Catblue

Surveyor: Local independent
When was the valuation? January 2011
Did you go down the 'comparables' route (i.e. providing details of similar sold prices to justify the selling point): No, although as buyers we had done this research anyway before putting an offer in
Did the sale/purchase continue? Yes
If the sale completed, was the price reduced downwards or kept the same? Same
Any other comments?

I don't know why you are unhappy about being advised to pay LESS to buy a house. Tell the vendor that the independent valuation is X amount and it is take it or leave it.

MuddledOfMiddlesex

Thanks for the information, I'm not necessarily unhappy as such - I just want to be armed with more information and I get the impression it's an increasing problem. But I might well be wrong so I thought it'd be an interesting thing to poll on. Obviously I don't want to pay over the value, but at the same time, a lower valuation doesn't necessarily mean the vendor will accept it in which case you're deadlocked.

Catblue

MuddledOfMiddlesex wrote: »

Obviously I don't want to pay over the value, but at the same time, a lower valuation doesn't necessarily mean the vendor will accept it in which case you're deadlocked.

Nope, it means that you won't be buying the house so time to move on rather than agonise about it.

Even if YOU personally did want to pay over the odds for the house, the mortgage company won't even entertain the idea so it is a non-starter anyway.

I do understand your frustration though. It is hard enough to make a decision to put an offer in on somewhere (particularly when you have been looking for a while) and just when you think the house is nearly yours, something like this kicks in to knock it back. You have my sympathies.

poppysarah

MuddledOfMiddlesex wrote: »

Obviously I don't want to pay over the value, but at the same time, a lower valuation doesn't necessarily mean the vendor will accept it in which case you're deadlocked.

Only if you are desperate for that particular house.

Compare:

The seller has one house that they need to sell.

As a buyer you have hundreds to pick from.

MuddledOfMiddlesex

True. Trouble is, I've been looking for the best part of a year - I've seen about 100 - and the house is just right for me. But not that amount of money right. Plus the surveyor isn't local and I've actually seen the market pick up lately in this area, weirdly, bucking all the other trends.

poppysarah

MuddledOfMiddlesex wrote: »

True. Trouble is, I've been looking for the best part of a year - I've seen about 100 - and the house is just right for me. But not that amount of money right. Plus the surveyor isn't local and I've actually seen the market pick up lately in this area, weirdly, bucking all the other trends.

Strangely I've seen a few going SSTC in my area over the last week or so. It is like something has got really detached from reality - there are talks of more jobs losses to come, wage freezes, and people not being able to afford heating bills. SO WHO is buying houses at the moment?

At the same time a big local landlord has apparently gone bump so I am intrigued as to what happens with his hundreds of houses.

And LHA is lower and lower too - so there should be less interest from a landlord perspective too.

I am wondering if it's EA with their own properties on the market faking sales. (Yes I'm that cynical! The LL who's gone bump *was* the local market round here)

MuddledOfMiddlesex

Very strange, isn't it? The British love affair with property is one that does defy reality, I think. Plus even seemingly trivial factors like the fantastic weather over the two bank holiday weekends might have fuelled a sense of optimism that flies in the face of the really harsh economic news this last week/month/year.

EatingGlitter

Was valuation on a house you're selling or buying: Buying
Surveyor: Countrywide (Who for all their bad rep, were done and dusted within 2 working days and the HBR was with us on the 3rd!)
When was the valuation? LastMonday
Did you go down the 'comparables' route (i.e. providing details of similar sold prices to justify the selling point): No as it came in dead on agreed price and the surveyor said to me on the phone we had got a really good deal and would have priced it more if not for a couple of niggles
Did the sale/purchase continue? So far it is....
Any other comments?