House valued lower by Surveyor

rizla01

Guy_Montag wrote:

If your house is 10% overpriced say 110k instead of 100k, but prices are dropping at say... 20% a year what happens:

Year one: typical price 100k try to sell at 110k, fail
Year two: typical price 80k try to sell at 88k, fail
Year three: typical price 64k try to sell at 70k, fail

Eventually sell at 50k out of abject desperation, even though 4 years ago it would have fetched 100k

I've deliberatly taken a very extreme, & unrealistic, example to illustrate the concept. (Much as I would love prices to drop at 20% a year).

Aha. I understand now. Thanks for the explanation Guy.

Anyway, only a fool would willingly take 10k less (= -10%)than the value of their property.

Personally, I dont see how I was recommending that people should sell their property for more that it's actual VALUE, which is suggested by that comment.

The suggestion was made earlier that this seller should take the value as calculated by the mortgagees valuer, which, to all intent, is lower than the property is worth.

Also, there is absolutely no eveidence to show that property values are falling anywhere AFAIK.

barney_1972

Thanks for all you posts everyone (i have thanked you all)

Good to get a debate going from both sides.

I have chosen to hold out for another buyer, if this one drops out that is.
I've had quite a few viewings and the EA seems pretty much on the ball (well as good as they can be).

Local comparables tell me the price of my house IS competitive. So i'll take my chances for now that the surveyor got it wrong and see what the next one turns up. (with the next buyer)

If it happens again (undervalued survey) then i'll review things
I started out at £115k and still had viewings. So to drop to £106 for a sale is pretty reasonable already.

Foretunately i'm not in a mega rush to move so can afford the luxury of waiting a bit longer.

Hopefully not too long though.....

Doozergirl

If your house really was worth £90k I doubt you'd have had ANY viewings at £115k.

It's nearly a third more than the surveyors valuation! Buyers aren't that stupid! I don't know your area (you wouldn't get anything in mine for £90k) but I suspect we'd be talking an extra bedroom where you are. It doesn't tally.

I hope things work out with this buyer, otherwise I think you're doing the right thing. None of us know what is going to happen in the market, but very few would take a drop like that without resistance.

rizla01

Good luck Barney.

mr.broderick

Doozergirl wrote:

So what's your advice? Do you think the OP should accept a £10-15k drop or try for something better?

I did say pinch of salt, not dismiss, and I was referring more to another post which gave no help at all, but for which the OP still kindly thanked the person posting.

You have a fetish about the thanking of posts...

I like the idea of slightly used socks being wore again....

lynzpower

mr.broderick wrote:

You have a fetish about the thanking of posts...

I like the idea of slightly used socks being wore again....

Are you some sort of weirdo? the internets full of them I hear :rolleyes:

mr.broderick

lynzpower wrote:

Are you some sort of weirdo? the internets full of them I hear :rolleyes:

Oh yes

plenty of weirdos on here lynz

zipwen1

this happened to us the surveyor picked loads of things that could be wrong with the house damp, electrics, extensions. and advised a retention of a certain amount until these thing had been checked by the qualified peps. our EA (stupid woman) phoned said she had seen the survey and the house had been valued for less than the offer and could we reduce our price, we did and asked for a copy, she sent, we discovered her mistake and raised the price again, if it hadn't been for us being that gobsmacked by the supposed undervalue from the surveyor we would have sold an lost out. in the end all the qualified peps who checked the work said the valuer had been a bit ott and everything was fine

Mrs_Optimist

Surveyors highlight problems, they do not highlight plus points- that isn't what they are paid for. They have to cover their back in case they miss something (my parents moved into a house once to find it was riddled with dry rot which the surveyor hadn't picked up on - although he was paid to do a full survey he only did a drive-by valuation, and was promptly sued) You would be hard pressed (I think) to find a survey that is 100% positive.

The upshot is that mortgage lenders won't lend money to buy ropey houses. It does soudn as thought the OP's survey was over cautious if he was getting viewings at £115k though