Valuation of property much less than expected!

malko

I made an offer on a property and instruced a survey through the bank. The surveyor has valued it £40k less than i offered! Now in the valuation they note how much it would be worth once repaired and in good condition and this is still £20k under my offer and more shocking £30-40k LESS than comparable houses in this area are selling for! The price they have valued once fully repaired is about the same a 2 bed terraced goes for-this is a 3 bed semi!
Any suggestions whats going on here? How would they have arrived at this figure? Obviously the bank will only lend me what its been valued at?

Becles

There is a difference between the value of a property for mortgage/insurance purposes and the selling/asking price of a property.

malko

the problem is the bank will only lend me the amount the property has been valued by the surveyor?

nearlyrich

Why would you want to pay more than the house is worth? Have you discussed it with the estae agent? Are houses selling in the area?

malko

have got to call them tomorrow. Houses are going like crazy here. I sold mines in 2 days for 5k over the asking price. Buyers get into bidding wars all the time here. I dont want to pay more than its worth i just know after having been outbid on other houses in the street this one i am purchasing is on they go for £30-40k more than the surveyor has valued this one. Trust me houses sell for asking price and over here

Doozergirl

If you are sure it's worth what you are paying, you need to get the estate agent to provide you with details of houses that have sold for similar amounts (and even smaller houses that have sold for his valuation) and go through your mortgage broker to try and convince the surveyor to up his valuation.

Find links of other houses that are under offer on rightmove and send this forward too. You can't prove what they're selling for but you can support what the ballpark figures are.

I doubt he'll come up all the way for you so you may have to try renegotiating with the vendor also. If there is lots of unexpected work to be done, this is good reason.

roswell

malko wrote: »

have got to call them tomorrow. Houses are going like crazy here. I sold mines in 2 days for 5k over the asking price.

No offence but if you were in this situation you probably sold to cheap, if you feel the house is really worth it can you make up the £40 000 shortfall ?


I agree with the others dont pay more than its really worth so in your case I would look to get it valued again.

malko

roswell wrote: »

No offence but if you were in this situation you probably sold to cheap, if you feel the house is really worth it can you make up the £40 000 shortfall ?


I agree with the others dont pay more than its really worth so in your case I would look to get it valued again.

It was only a 2 bed terraced so i was pretty much at the ceiling point with the amount i got.
i cant make up the shortfall but given what the survey had pointed out its not worth the shortfall. Its worth £20 more than the suveyor has valued. I have got to be sly here as i want to get the house for as little as i can, plus its not totally clear how much work needs carried out. So i either gamble another 1k on various reports/quote from engineers or walk away

deanos

http://www.nethouseprices.com/

Go there and see what houses have sold for in the area

missile

Do you not have sufficient equity from your previous house?
You might want to try a.n.other mortgage provider.
You could take out a loan for the shortfall.
You could look for a cheaper house.

scheming_gypsy

malko wrote: »

have got to call them tomorrow. Houses are going like crazy here. I sold mines in 2 days for 5k over the asking price. Buyers get into bidding wars all the time here. I dont want to pay more than its worth i just know after having been outbid on other houses in the street this one i am purchasing is on they go for £30-40k more than the surveyor has valued this one. Trust me houses sell for asking price and over here

you've answered your own question i think. House prices go for asking price and over, the seller will know this and are trying to get a bit more i reckon.