How do valuers sleep at night????

pinkshoes

HAPPY_BEING_A_YUMMY_MUMMY wrote: »

WE HAVE HAD TO AGREE A PRICE OF 311,000 (THEY HAVE BORROWED 275,000 AND GOT 36,000 ON A PRIVATE LOAN)

The problem here is not the valuer, but your BUYERS!

What do they earn? It would seem that they only earn enough to get themselves a mortgage of £275k (so perhaps £80k joint income), and yet have saved up absolutely NO deposit.

If they're taking out a private loan instead of having a deposit, then please don't be surprised if the sale falls through, as they have to declare where the deposit comes from, and it CAN NOT be in the form of a loan.

You have some shoddy buyers here who are clearly trying to buy something they can't afford, so the valuers are just trying to protect the lender's money.

Running_Horse

How much did the house cost you? Oh yeah, nothing. So whatever you make is unearned profit.

HAPPY_BEING_A_YUMMY_MUMMY

Thanks for all your messages.

I would agree with most of the comments if I was sat where you are too but unfortunately I am not.

Yes the money is all to come to my parents but as they are both going to need care (from a family of long livers thank goodness) we need all the money to enable care home fees of 35k a year!! And bear in mind they have actually been out of the house five years in total already. (it took a while to realise they were t able to live there still so no not being greedy just realistic!!!)

The buyers have a deposit but I didn't want to put too much personal information on the site to protect them. But I do know their personal circumstances and I should perhaps have said they are both in highly professional secure jobs with earning potential.

Whatever happened to a house is worth what someone is willing AND ABLE to pay and they feel they are more than able to pay this amount borrowed. But they are still paying off student loans and starting a family etc so even though high potential earners have other outgoings at the mo!

The house was priced at 450k by estate agents - we followed their advice - my advice in future would be DONT! We have had lots of offers in the past for the house (some we accepted and their circumstances changed and others we turned down but a crystal ball is a wonderful thing!!!) but obviously then we had no idea where the housing market was going but also the house had to be refurbed because wasn't in a fit state to be sold as it was. This took longer than expected and our outgoings were slightly higher. The main problem with people not being able to proceed with previous offers is the banks and building societies swinging too far the other way and being totally over cautious - I know something had to be done especially getting rid of the self cert mortgages but if the Banks and BS don't start lending soon our housing market is going to go from stagnant to dead and buried! Come on Banks and BS can't we be more realistic!??

The private loan is in place with the blessing of the building society as they have had to get a second charge on the deeds to secure the loan so the whole thing is legit and above board.

I have seen all the valuation paperwork involved and there is no justification for it. But even though we suggested a private valuation the building society have said they are bound by the valuer they have nominated and even if a valuer (with local knowledge) came back with a more realistic valuation they couldn't change it but they have allowed a second charge - this I believe shows the bank know the house to be worth more than they are loaning but are not willing to take a view!

Sorry for the shout capitals - partly done through being very annoyed and partly through a new computer from Santa!!

Ps - own brother is a chartered surveyor and in that profession not many people go to uni with the intention of being a residential valuer - they just end up as one!!!

HAPPY_BEING_A_YUMMY_MUMMY

tbs624 wrote: »

Most vendors would of course require firm evidence of the valuation if a buyer was seeking to use that to achieve a lower purchase price so its unlikely to simply be "telling tales of valuation". The fact that the valuation figure was hugely lower than the apparent agreed purchase price meant they effectively had a shortfall in what funding the lender would be prepared to offer and as others have highlighted that private loan could well prove to be problematic. Doesn't sound like "expert buyers" to me - more a case of a vendor who has placed too high a price on the property they wish to sell and simply can get their head around their imaginary loss.

The "lots of viewings" but no sale over the previous *3 years* says pretty unequivocally that the property was over priced and possibly over spec for the location.

Should have said had lots of viewings and lots of offers - some of which we turned down - aah the magic of a crystal ball and others we have accepted and they have fallen through for one reason and another - not always to do with borrowing or house price so compared to a lot of houses of this price and size that are on the market we have had a lot of activity but unfortunately time has gone on!!! We agreed this sale back in June but it has taken until now to get to this!!!

brit1234

HAPPY_BEING_A_YUMMY_MUMMY wrote: »

Come on Banks and BS can't we be more realistic!??

I think you are find there are being realistic but you don't like the answer.

BitterAndTwisted

"The house was priced at 450k by estate agents"

That really doesn't surprise me at all. They come up with fantasy figures to get your business. It rarely means that they're utterly confident that they can sell it for that figure. As has been proven. I suspect the price you're being offered really is the most realistic one in the current climate.

propertyman

Ps - own brother is a chartered surveyor and in that profession not many people go to uni with the intention of being a residential valuer - they just end up as one!!!

Most people going to University have hopes and expectations far removed from the realities of life.

It is easy to end up specialising or pigeonholed- it's often more profitable personally, if not satisfying, than doing varied general practice work ( and it's greater obligation to manage risk and difficulty in generating predictable income streams for the employer) in any of the divisions. It's something that can be said in most sectors of work.

I thoroughly enjoyed 4 years of gp work "living" in my car, so much so that when we moved offices the Senior Partner forgot to allocate me a desk, let alone a new office!

So for some it's not being at the bottom rung of the profession but what they like to do.

suki1001

HAPPY_BEING_A_YUMMY_MUMMY wrote: »

Yes the money is all to come to my parents but as they are both going to need care (from a family of long livers thank goodness) we need all the money to enable care home fees of 35k a year!! And bear in mind they have actually been out of the house five years in total already. (it took a while to realise they were t able to live there still so no not being greedy just realistic!!!)

The problem with any people selling, is they sometimes put a price on their property to help fund the thing they need to do next and they tend to factor how much x thing might cost into the value of the property they're selling. You need to seperate the 2. If you try and work out how much your parents might potentially need and value the house that way. You'll always overvalue it. Having said this, if you seriously think your parents will live very long lives, I once looked into an insurance option, where you paid so much of your balance once the house was sold and you were guaranteed the care home fees for the life of the person going into the home. I'm glad my grandmother didn't take this option though.

My Grandmother needed 2k a month for here care home fees. But once her pensions and attendance allowance were added to this, the balance went down slower than I thought it would.
Plus, I knew if it went down below a certain amount, the state would fund it.

Just out of interest, have you looked at them staying in their own home with 24hr care. Some people acheive this with funding.

HAPPY_BEING_A_YUMMY_MUMMY

BitterAndTwisted wrote: »

"The house was priced at 450k by estate agents"

That really doesn't surprise me at all. They come up with fantasy figures to get your business. It rarely means that they're utterly confident that they can sell it for that figure. As has been proven. I suspect the price you're being offered really is the most realistic one in the current climate.

yes i agree - they price to get your business but we did get three EA to value and they all suggested the same! it prob is a more realistic price now but I feel sure if we had put on at 400k to start we would have achieved very near - it was three years ago!

This post was more a gripe about the power one valuer can have on circumstances and now they feel the power because they have the BS and banks over a barrel - they have to agree or else!

Valuers are too scared to make a sensible valuation and put their name to it they like to play it ubber safe - to no benefit of anyone other than themselves!!! If its just a case of doing a local computer generated valuation - we can all do that and we have come up in the 350k ball park for this size in this area!!! Theres no point in the valuer coming out if the rains too much for his hush puppies!!!

HAPPY_BEING_A_YUMMY_MUMMY

suki1001 wrote: »

The problem with any people selling, is they sometimes put a price on their property to help fund the thing they need to do next and they tend to factor how much x thing might cost into the value of the property they're selling. You need to seperate the 2. If you try and work out how much your parents might potentially need and value the house that way. You'll always overvalue it. Having said this, if you seriously think your parents will live very long lives, I once looked into an insurance option, where you paid so much of your balance once the house was sold and you were guaranteed the care home fees for the life of the person going into the home. I'm glad my grandmother didn't take this option though.

My Grandmother needed 2k a month for here care home fees. But once her pensions and attendance allowance were added to this, the balance went down slower than I thought it would.
Plus, I knew if it went down below a certain amount, the state would fund it.

Just out of interest, have you looked at them staying in their own home with 24hr care. Some people acheive this with funding.

Yes thanks but parent s have always paid own way and always intend to - had four children and have all paid own way through life - no one in the family ever had anything for nothing - fortunately and thank goodness!!