Nationwide Valuer's drive by & undervaluing

saverbuyer

jolikyle wrote: »

We're comparing what other similar, if not smaller, properties have sold in past 6month max at- around the £200k, we'd sale agreed at 230,000 as i have previously stated. And as for rateable value not coming into play, we were advised this by our current mortgage provider- in northern ireland!! oh and also by our broker, in northern ireland!! Tho a ni dept finance report has shown a 7% reduction in2005 values - so 7-10% below rateable value wud probably be a better basis and one i'd agree with. - that give us a value of just over £170,000

I have also had it assesd using % values from what market has dropped. To be worth £152000, the market would need to have dropped near 30% in the 2 years since we last had it valued, and i'm refering to when our last remortgage occured and it was valued by a mortgage assessor then at just under £210,000. (i do understand market value then valued at £260,00 and mortgage values to be somewhat dif) Name me one market think tank and assesor who is claiming this to be true. Maybe close to this % in past 5-6 years, especially in NI but certainly not in 2 years!
Yes a bit of realism is needed in this market but this is beyond that. A value of say £170 would hve been a bit reduction, hard to swallow, but realistic.

Lets not all jump on the haha your house price has fell bandwagon- we're all in same boat. All i asked for was advice on how to move forward from an extreme reduction which i received and have started our appeal.

Where are you getting the other "sold" prices from? If it was from estate agents/brokers I would take with a nice pinch of salt, we have no access to sold prices here in N.I. As you know personally a sale agreed is not a sold property. There are many many properties here in N.I. that go sale agreed and come back on the market. Usually due to the fact the assessor price is less than the agreed price. It doesn’t matter what someone offered, unless they complete it is meaningless.

You current provider may use RV+X but most are using a minus value. You also have to look at the fact new builds lose value.

You have mentioned the recent DF report. It actually says prices here (on average but probably more for the higher end of the market) dropped 7% in the first 3 months of the year alone.

It looks like all your estate agents "values" were much much too high. Coupled with the 20%+ falls in the last 2 years and 60% in the last 5, you really have been unlucky.

The reduction doesn't really appear extreme. In fact it appears quite reasonable to me. The key think here is going to be when did you actually buy the house. If it was 2001 - 2002 it's probably "worth" what you paid.

jolikyle

saverbuyer wrote: »

Where are you getting the other "sold" prices from? If it was from estate agents/brokers I would take with a nice pinch of salt, we have no access to sold prices here in N.I. As you know personally a sale agreed is not a sold property. There are many many properties here in N.I. that go sale agreed and come back on the market. Usually due to the fact the assessor price is less than the agreed price. It doesn’t matter what someone offered, unless they complete it is meaningless.

You current provider may use RV+X but most are using a minus value. You also have to look at the fact new builds lose value.

You have mentioned the recent DF report. It actually says prices here (on average but probably more for the higher end of the market) dropped 7% in the first 3 months of the year alone.

It looks like all your estate agents "values" were much much too high. Coupled with the 20%+ falls in the last 2 years and 60% in the last 5, you really have been unlucky.

The reduction doesn't really appear extreme. In fact it appears quite reasonable to me. The key think here is going to be when did you actually buy the house. If it was 2001 - 2002 it's probably "worth" what you paid.

Residential property prices are now 7% lower than Q1 2005;

quoted directly from there 2012 stat report on their web page dfpni.gov.uk

with Rateable value being based on 2005 value. We built in 2007. and the prices of house sold on our street are from the house owners direct. I know the games estates agents can play so no, i go by our neighbour friends thanks. Although these estates agents that are high valuers are the same estates that solf our neighbours houses and agreed ours before our buyers buyers fell through. granted a sale agreed was not a sold but the fall through came from down the line. Pretty sure i'll not be back on this board. Great advice at the start about the appeal but since then most just want to say "i told you so", "i'm smarter than you", or "your wrong" . I'm happy to take a lower value after a fair assessment, from someone who spent more than 3 secs driving by my gate, but i won't accept a lazy mans job being done at my expense. (and of course at the banks gain!!)

lazer

jolikyle wrote: »

Hi all, any advice would be greatly appreciated. We put our house on the market 1 1/2 years ago and it was valued at £260,000. About 3 months ago we reduced the value to £ 230,00 on understanding that if it hadn't sold by time our current mortgage deal came to an end we would take it off market to organise that. Well we've now done that and have applied through a broker for a 5yr fixed deal of 3.59% on understaning that our house is 70%LTV or below, which we were assured it def would be for borrowing 110,000. Well Nationwide have organised a drive by valuation and they have come back with the astounding of £152,000 for a value!! They are seriously suggesting its lost £98,000 value in 1 1/2 years!! Where do we go from here? this valusation obviously suits them as if we accept it we can only go to a 3.99% mortgage. and worse still we've been told that most lenders use this sub contracted company, who work to their advantage. help...

I see you are looking to borrow £110,000 on the remortgage, could you wait it out on the variable rate for a short while, until you raise enough money to get it at 70% LTV, which given the valuation of £152k is £106,400 borrowings, you therefore need an additional £3,600 - how long would tis take to save?

I bought my house in NI in January for £115k (Originally on for £140k, and there are now houses with 1 extra room etc going for less than it - house prices in NI are falling dramatically)

If you are in Bangor or similar then possibly a 4 bed detached house is worth over £200k but not in the rest of the country.

saverbuyer

jolikyle wrote: »

Residential property prices are now 7% lower than Q1 2005;

quoted directly from there 2012 stat report on their web page dfpni.gov.uk

with Rateable value being based on 2005 value. We built in 2007. and the prices of house sold on our street are from the house owners direct. I know the games estates agents can play so no, i go by our neighbour friends thanks. Although these estates agents that are high valuers are the same estates that solf our neighbours houses and agreed ours before our buyers buyers fell through. granted a sale agreed was not a sold but the fall through came from down the line. Pretty sure i'll not be back on this board. Great advice at the start about the appeal but since then most just want to say "i told you so", "i'm smarter than you", or "your wrong" . I'm happy to take a lower value after a fair assessment, from someone who spent more than 3 secs driving by my gate, but i won't accept a lazy mans job being done at my expense. (and of course at the banks gain!!)

It's actually 7% down in the last quarter. 13% down in the last 12 months and 7% off the average price set in 2005. So the average price is now 7% lower than the average in 2005.

You built at the absolute peak of the market. Prices here are down 50-60% from peak.

Morgage_Confused

From the dfpni.gov.uk 2012 stat report, on their web page it says...

"Residential property prices are now 7% lower than Q1 2005 and around half of the peak value of the housing market in Q3 2007"

So based on the fact it was also a new build the valuation might not be what you expected it to be...what did it cost in 2007?

Thrugelmir

jolikyle wrote: »

All i asked for was advice on how to move forward from an extreme reduction which i received and have started our appeal.

You may find that lenders are very wary. So aren't interested in taking any amount of risk.

thistledome

Good luck with your appeal OP.

I used to work in a surveyor's office and a drive-past valuation is quite common in these circumstances. The value comes from comparables, so if you can honestly show that other similar houses in the locale have sold recently for so much, then I think your appeal has a chance.

redped

jolikyle wrote: »

Great advice at the start about the appeal but since then most just want to say "i told you so", "i'm smarter than you", or "your wrong"

I must have missed those posts - all I saw were a number of posts (including mine) that pointed out:

(a) the initial two prices you were trying to sell at were too high, and that perhaps the current valuation is actually nearer what people may be prepared to pay for your house.

(b) house prices in NI have fallen more that most people (including me) realise, and that if people want to sell their property, they must be prepared to potentially sell it for less that they would like.

Until recently, there was a great website (irishhousehunter.com) that would track weekly price changes on properties in NI and ROI, although the people running it have now stopped updating the site. Every few months the same houses would appear again and again with another few thousand knocked off the asking price, and I'm sure each time the EA assured the seller that it'd definitely sell at the new lower price.

BTW, I do hope you get your house sold!

jolikyle

Just a quick update. i know most posters were of opinion i was wrong to think my house had been undervalued and i just accept the valuers opinion. We appealed the £152000 valuation and got a new valuation done- it came back today at £172000. So a 20k jump inopinion and very closee to my estimate of £175000. Seems an appeal was worthwhile!!! Got our LTV down from 74% to 66%. Amazing- i actually was right and not delusional as i was begining to believe!! Thanks for your sound advice GMS and thistledome

saverbuyer

jolikyle wrote: »

Just a quick update. i know most posters were of opinion i was wrong to think my house had been undervalued and i just accept the valuers opinion. We appealed the £152000 valuation and got a new valuation done- it came back today at £172000. So a 20k jump inopinion and very closee to my estimate of £175000. Seems an appeal was worthwhile!!! Got our LTV down from 74% to 66%. Amazing- i actually was right and not delusional as i was begining to believe!! Thanks for your sound advice GMS and thistledome

So it went from a "value" of £260,000 18 months ago and now is "valued" at £172,000 even thought there are comparables selling for £210,000 recently. So it lost £78,000 in 18 months and not £98,000. Well done...