how generous are post office valuation?

xyz123

A home buyers survey and valuation is being done on a house we are buying in west london. Mortgage is through post office? Does anyone know, in general how generous are their surveyors in valuation?

also, if the valuation comes in at less value, can i do anything other than renegotiating the price or taking a chance with another lender!

Dave_Ham

Hi there,

Purchases are unlikely to be down-valued given the situation and the true test of what something is worth is what someone will pay.

That said, if it is devalued then re-negotiation of price is clearly the first step although it depends on the individual situations.

There is no rule that another surveyor would value the same, unless same surveyor firm was used again.

I have never seen a Post Office downvalued, although have probably only seen 8-10 clients used them to purchase.

Good luck - let us know how you get on...

tc9604

I had a valuation by the PO last week and they used Countrywide surveyors. It was for the agreed price.

xyz123

thanks for ur quick replies.

being FTB, i am being nervous with everything and worried with either being gazumping or chain being broken or something else! i know it appears very silly but i just cant help it!

Dave_Ham

Dont be silly, everybody worries in this process and I would be lying or stupid if I said you will be fine its a great process.

Rule of thumb is ask the estate agents and solicitors a lot of questions and do not ever just rely upon the Estate Agents telling you the truth - as they often do not..

If you do not already know, ask what the upward chain looks like and take advice from your solicitor or mortgage broker as they would have been through this countless times..

Ask away here, good advice usually gets posted...

xyz123

terrible news- valuation is 10k less than our offer. i am awaiting the home buyers report to see if that explains the reason. I was given the valuation figure by the surveyors (allied surveyors). Does anyone know if the post office will still lend us the money we need!.

Dave_Ham

This is not necessarily your issue.

Typically, if the survey comes in short they SHOULD have a good reason for this.

Take this back to the vendor and agree a discounted price. The Post Office will only lend you within the agreed loan to value at the lower "valuation price"

Good luck - in answer to your specific question in another post you can take a punt on another lender but why would you?

For you to ask in advance about this down-valuation possibility, should we infer that you actually think the house is overpriced?

brit1234

xyz123 wrote: »

terrible news- valuation is 10k less than our offer. i am awaiting the home buyers report to see if that explains the reason. I was given the valuation figure by the surveyors (allied surveyors). Does anyone know if the post office will still lend us the money we need!.

That's great news, go to the seller with this and haggle them down. You could portentially save yourself £10k and 25 years of interest on that £10k.

If they are not interested look else where and carry on saving that deposit. Prices will continue to fall in 2012 and it will be a buyers market. Sellers should get more reasonable after the stamp duty holiday finishes in March.

goodluck

xyz123

i have got some more details and posted under a new thread in home buying forum section. would appreciate any inputs. thanks very much. Can i share this report with the EA? What if they offer to do their own valuation?

https://forums.moneysavingexpert.com/discussion/3845785