Surveyor Valuation Less Than Asking Price

Purple_Carrot

Thanks for the different view points peeps.

I think ultimately we can't afford to buy a long term property if we sell at 131k so I think accepting a new lower offer isn't an option. I'm definitely coming round to the idea of letting the property - the financial aspects seem quite complex - tax rules etc, but I think if we consider it a long term investment it could become an asset rather than the money pit it is now.

proudmommy

We are currently having the same problem, we are ftb and have been accepted to have a mortgage for the asking price of property we want but when Natwest sent out someone from connels to do the valuation he downpriced it 10k less, the seller's have asked us to try another lender which we are in the process of doing which use esurv but I have already been warned that they may only value it the same as all surveyors go on comparible evidence which is only pricing between 110-115k the agreed price is 125, we just don't know what more we can do as house prices are really low Atm and the seller's are loosing out already as they paid 120 6 yrs ago. It's so frustrating and all because of the banks.

tigsly

why would you as a buyer want to pay over value.. it could mean you yourself slip into negative equity?

If it were me - i would not source a new mortgage provider.. i'd expect you to make a loss.. sorry if thats not what you want to hear...

proudmommy

They are only valuing the house based on what others in the area have sold for to me the house is worth that price as it comes with alot of land and space to extend plus has had alot of work done to it, we are hoping to have this house as our family home and not plan to move it's perfect for us.

pc1271

The value of a property is - by definition - the price someone will pay for it. Surely if the purchaser (or at least a significant number of potential buyers) is willing to pay, that is the value.

kingstreet

Did you actually pay the asking price, or are we talking about an agreed price below that?

The surveyor's eye is on the resale and price prospects if the lender has to repossess, not what utility the buyer is going to achieve in the long term.

The only meaningful way to value property is to look at the recent (120 days or less) sold prices of similar property in the vicinity (less than 0.5 miles). These are the comparables surveyors use. OP - did your advisor suggest gathering comparables to submit an appeal to the surveyor before applying to another lender?

When it comes down to it if the OP is so convinced it's worth it, pay the extra and increase your deposit to cover the shortfall the lender won't lend.