Survey Valuation

mprcomp

I am trying to sell my house and after several months of trying to sell house I finally sold it so was hoping things would go smoothly from there. How wrong I was.

The buyers mortgage company had a survey valuation done by Colleys. Guy seemed nice when he came round but then the buyer came back saying the survey said was only worth 108.

This is gutting I bought property nearly 5 years ago when bought it was not in great condition for 118500 and then spent around 10K getting it where it is now. So for me that is a 20.5K loss which just seems too far fetched. This suggests when I bought it the survey was overvalued first time round.

I have seen a quick screenshot of report but not whole thing.

The agreed sale price was 114 and even then things were tight.

Any ideas on where to proceed from here? It seems like we might just have to let it fall through. Going to look at getting 95% mortgage but at present things are tight.

Would you think I am stupid to sell house on with such as loss?

Thanks

Paul

kingstreet

Unless your "improvements" have added space, they are unlikely to have resulted in an increase in the value. They may have improved the property's marketability, however.

From £118,500 to £108,000, from the top of the market in 2007, is a drop of 8.8% which would be low for some parts of the country, while others may have seen increases. It's difficult to know if this is reasonable or otherwise.

If you are unable to sell for £108k, you have no option but to remarket and hope any future buyer does not use Halifax for his/her mortgage, Colleys owner.

Are there any comparable properties close-by which have sold for more than £108k in the last few months? It is these comparables a surveyor uses to back-up his opinion.

pmlindyloo

mprcomp wrote: »

I am trying to sell my house and after several months of trying to sell house I finally sold it so was hoping things would go smoothly from there. How wrong I was.

The buyers mortgage company had a survey valuation done by Colleys. Guy seemed nice when he came round but then the buyer came back saying the survey said was only worth 108.

This is gutting I bought property nearly 5 years ago when bought it was not in great condition for 118500 and then spent around 10K getting it where it is now. So for me that is a 20.5K loss which just seems too far fetched. This suggests when I bought it the survey was overvalued first time round.

I have seen a quick screenshot of report but not whole thing.

The agreed sale price was 114 and even then things were tight.

Any ideas on where to proceed from here? It seems like we might just have to let it fall through. Going to look at getting 95% mortgage but at present things are tight.

Would you think I am stupid to sell house on with such as loss?

Thanks

Paul

It is a sad fact of life thaqt people selling properties today are finding themselves taking a 'hit'.

Usually (but not always) it is balanced by the fact that the property they are buying is also relatively cheaper.

Have you found somewhere to live yet?

Unfortunately you haven't sold your house, only accepted an offer.

Of course, if your potential buyers really want your property they might find the extra money themselves (over and above above their mortgage offer) What have they said? Equally likely is that they would not be prepared to pay a penny more than the valuation.

So, options

Stay where you are and pray houses increase in value in the future.
Buy somewhere cheaper than you would have liked and lower your selling price.


As the previous poster said future valuations by different companies may come in higher but as already said they do look at comparable properties in the area.

It is a tough choice when you have spent money on improvements. I feel your pain.

Your decision - will depend on your reasons for selling.

mprcomp

We found somewhere else but the issue is that we needed the 114 to get 10% for mortgage.

We are already borrowing 5% off family to get to 10%. I am going to get in touch with Newcastle BS about 95% mortgage today but not hopeful as know these lenders are quite strict with offers at moment.

skater_kat

My flat has just been valued at 15k less than purchase price 5 years ago. i live in brighton.