Estate Agent Valuation vs By to Let Mortgage companies Valuation

noss

Hi all

Is there much difference between an Estate Agent's Valuation of a property and that of a valuation organised by a Mortgage lender who's lending for a by-tolet mortgage? Any input would be appreciated.

Cheers

_Andy_

Yep EA is almost always going to be higher

holly_hobby

The EAs valuation is for marketing purposes only - the surveyor's (on behalf of the lender) is based on the condition of the property and is a realistic (achieveable) sale price in the applicable market - which is why the 2 can and often differ.

NB - If you are buying, it would be prudent to use any down valuation by the lenders surveyor, to your advantage as a valuable bargining tool.

Hope this answers the q.

Holly

kingstreet

A surveyor doing a valuation for a BTL mortgage will almost certainly be doing a rental valuation, as well as a capital valuation.

dunstonh

Most estate agent prices are around 10-15% higher than the likely sale price as they know the buyer is really going to put in a price that matches the sale price but put a lower one in. A lower price will normally be accepted.

Mortgage valuations do not use the increased for sale price. They use a more realistic sale price. In a rising market, the gap will not be that great or indeed there may not be a gap. In a falling market or stagnant market, the gap will typically be bigger.

googler

noss wrote: »

Is there much difference between an Estate Agent's Valuation of a property and that of a valuation organised by a Mortgage lender who's lending for a by-tolet mortgage? Any input would be appreciated.

The only one that the lender will accept to determine how much they'll lend to you will be one carried out by a surveyor on their surveyor's panel.

You can bleat to the lender 'til you're blue in the face about how the EA 'valued' it differently, but it won't make them lend you any more than the surveyor valued it at.

That's the essence of it, as I see it.