Halifax valuation criteria?

motherofstudents

I understand where you are coming from. We bought our house in 2007 in a very poor state so £50000 under the valuation of similar properties nearby.

We totally gutted it, put in new roof, windows,central heating,new bathroom, new kitchen, rewire, replumb, conservatory, new floors (as in joists) so everything went back to brick and no floors.

If a valuation done now was based on the price we paid, it would not be accurate at all.
The valuation surveyor shouldl look at comparables, not just the sold price of the house. It is in your interests for the valuation to be accurate as if it is valued below what you have offered, you will either have a bargaining tool to reduce the price or you can walk away having not overpaid.

lincroft1710

bluedrop wrote: »

nationwide/ Halifax indices are rubbish

They are far from 100% accurate and at best should be used as a rough guide, allowing +/-10%.

kingstreet

When carrying out a valuation, surveyors use the "Red Book" which is a guide provided to them under their membership of the RICS.

http://www.ricsbooks.com/productInfo.asp?product_id=19035

They will take into account the condition of the property and the price being paid, compared with the recent sales of similar properties in the vicinity.

Indexed/desktop valuations tend to be used by lenders for further advances and low loan to value remortgage business. Inspections are still used for purchase valuation business.

divlaw

kingstreet wrote: »

When carrying out a valuation, surveyors use the "Red Book" which is a guide provided to them under their membership of the RICS.

They will take into account the condition of the property and the price being paid, compared with the recent sales of similar properties in the vicinity.

Indexed/desktop valuations tend to be used by lenders for further advances and low loan to value remortgage business. Inspections are still used for purchase valuation business.

Thank you, this is the information I was looking for. I am little reassured knowing that the property will be inspected and the price of other neighbouring properties will be taken into consideration, not just the previous sold price of this one house alone.