house valuation looming

keyboard

Hi

I will be having a house that im planning on buying valued.
I'm just wondering how concerned should i be if its valued lower then the price i have agreed to pay for it.

What are the pitfalls that i need to be aware?

Do houses tend to be undervalued by surveyors?

The only pitfall i can think of is that if the price is considerbaly lower and i accept then perhaps it will impact me when i sell it on again ?

Doozergirl

They don't tend to be undervalued but they are more likely to do so if your mortgage has a high percentage loan to value. The lender needs to know they can sell your house for the amount of the loan, or more, in the event that they end up repossessing it.

The smaller deposit you have the more likely they are to undervalue as the surveyor needs to cover his backside. On the flipside, they are much less likely to undervalue a house paid for with a large deposit.

Of course if you are paying way too much then you might get caught out in the future. Ultimately it is your responsibilty, not your lender's to work out what your intended property is currently worth. You do that with proper research and a decent survey. Bricks and mortar count for far more than a new kitchen.

keyboard

Hi Doozergirl

The house was up for 159950, it dropped to 155000 and i agreed to pay 152,000 for it.

My deposit is 30K.


Research done is that i know a house three doors down sold for 169000 a year ago. .however it was only three years ago, the house im buying was bought for 115000.

Not exactly clear how undervaluing the house based on size of deposit works.

DJM2007

I'm into property and currently have 17 buy to lets.

My latest addition (2 bed maisonette, outside Edinburgh) was valued at £98k against my offer of £105k, so I'm £7k short from the mortgage lender. I put together a load of recent property adverts out of the paper and local estate agents, with a letter arguing that I believed that the property should be valued higher and they replied agreeing with me!

So in my view, if the valuation is more or less that what you want it to be, argue it! You may just win!

Your main pitfall if it is undervalued, is that your lender may not lend you the full mortgage that you need. If this happens, consult with the estate agent. You may be able to reduce the offer price on the property or the estate agent may speak with the valuers directly and persuade them to change their minds.

keyboard

Hi all

I have had the valuation done and the surveyor has valued it around 6 000 pounds less. Should i renegotiate?

Has anyone bought their house with larger discrepencies?