Valuation of property is less than my accepted offer.

Idiophreak

poppysarah wrote: »

That's strikes me as insane.

Wanting to pay more than someone's valued it at.

And that's the less biased value than the one from the person trying to sell it to you.

It's just one guy's opinion, though. Yes, it's less biassed than the vendor's opinion, but no less biassed than my own - why would I offer more than I thought the thing was worth in the first place? I noticed a typo in my first post, I said "valuation" when I meant "accepted offer"...I didn't just blindly take the price that the vendor put on it...

It's always drummed on this board "property's only worth what someone will pay for it"...Well, we were first in the development, so chose the best apartment. All the others sold for many thousands more than ours. So, you have the opinion of one guy, valuing a property at a time when lenders were having their knuckles rapped for aggressive downvaluations...or you have the opinion of 6 buyers...so your conjecture is that the 6 buyers were all crazy and the amazing all-knowing valuer couldn't possibly be wrong?

sugarwalsh

Of course valuers can be wrong. We purchased aour house at £134000, much lower than other houses on our street had been selling for until the crash. A year later (After rewiring, new bathroom, re decorating, new boiler etc) we wanted to borrow more money for futher work. The same guy came who initially valued the house came and valued it at £134000! As a result we didn't gt to borrow anymore, despite a huge argument with the lenders/valuers about them undervaluing it.

The following day the neighbours identical house (NOT modernised!) went on the market at £165000 and sold 6 weeks later for £157000.

So - just goes to show, valuers aren't always right.

Megan

propertyman

Idiophreak wrote: »

It's just one guy's opinion, though. Yes, it's less biassed than the vendor's opinion, but no less biassed than my own - why would I offer more than I thought the thing was worth in the first place? I noticed a typo in my first post, I said "valuation" when I meant "accepted offer"...I didn't just blindly take the price that the vendor put on it...

It's always drummed on this board "property's only worth what someone will pay for it"...Well, we were first in the development, so chose the best apartment. All the others sold for many thousands more than ours. So, you have the opinion of one guy, valuing a property at a time when lenders were having their knuckles rapped for aggressive downvaluations...or you have the opinion of 6 buyers...so your conjecture is that the 6 buyers were all crazy and the amazing all-knowing valuer couldn't possibly be wrong?

It is not one person's opinion it is an expert valuation for the purposes of security of the lender, over the longer terms.

It cannot nor should therefore reflect the individual choice of the buyer or a short term frenzy for "new releases" or " a change in Miras" (if you remember summer 1988 and the immediate price crash thereafter) or we must complete before Xmas.

A expert can make a mistake - in training I was cautioned on valuing on a summers day- it's true- and 6 people can be right, but the lender is not interested in that, only what it will sell for in default at some future date when the frenzy has passed and the Brand New premium no longer exists.

Idiophreak

propertyman wrote: »

A expert can make a mistake - in training I was cautioned on valuing on a summers day- it's true- and 6 people can be right, but the lender is not interested in that, only what it will sell for in default at some future date when the frenzy has passed and the Brand New premium no longer exists.

Right...But the buyer isn't the lender...

I can understand why it's *fantastic* for lenders to run around downvaluing everything as much as possible. If they valued everything at half it's worth, they'd be gagging for people to start defaulting, wouldn't they...They could repossess the thing and sell it for more than the amount of the loan without even trying...quids in!

What I can't understand is why a buyer being prepared to pay more than the valuation, which - as you point out - is a figure designed to give the bank a quick sale in the event of repossession is "insane"...

poppysarah

Eton_Rifle wrote: »

Buying a long term home for your family isn't always just about tbe money.

If you find the perfect house, the valuation comes in 20K lower, you've got the cash on your hip and the seller won't compromise - what are you going to do?

If you're buying some generic bland box then maybe you can happily move on to another.

If you have more particular requirements that few houses meet then you'd be cutting your nose off to spite your face.

I've overpaid the valuation twice now in these circumstances and I'd do it again tomorrow.

1. It should certainly have something to do with money.

2. If you want to waste money you have then that's fine. Most people quite like saving money. This is a money saving forum afterall.

3. Unique is probably the worst reason to spend more.

4. The people want to move. They have to decide whether they really want to.

5. So how much money have you wasted?

propertyman

Idiophreak wrote: »

Right...But the buyer isn't the lender...

I can understand why it's *fantastic* for lenders to run around downvaluing everything as much as possible. If they valued everything at half it's worth, they'd be gagging for people to start defaulting, wouldn't they...They could repossess the thing and sell it for more than the amount of the loan without even trying...quids in!

What I can't understand is why a buyer being prepared to pay more than the valuation, which - as you point out - is a figure designed to give the bank a quick sale in the event of repossession is "insane"...

Because there is not one single basis for valuation and the purchase price; one is for security one is for the house I want to live in! Lenders are not down valuing as much as purchasers are putting a premium on something that has a unique quality to them.

I have explained some of the factors earlier; it is nearer a school which one child is already at, I don't intend to change the bathroom or carpets and therefore can afford to beat out the other offers from those that do.