Lender Valuation Considerably lower than asking price!!!

princeofpounds

I do find it disturbing that these mortgage lenders seem to be dictating the market almost on a whim.

Why?

Pending detailed information it seems the valuer has not been whimsical in their assessment.

Further to that, the mortgage company is the one effectively buying the house, or at least part of it. They have every right to preserve their interests.

Finally I'd note that mortgage price and availability generally does drive the market, whether it is limited by valuations, or leading policies, or the ability of lenders to fund themselves. In most part the prices people are willing to pay are directly determined by the mortgage they will have to service.

poppysarah

Tancred wrote: »

Can you not use another lender? Or look at the local market for similar houses and do a comparison. If these are in line with the price then the valuer has made a bad mistake.

Oh my lord you're on the wrong site!

Money saving ....

Don't encourage people to spend more on a house.

poppysarah

michaelkosei wrote: »

]We made our mortgage application with Halifax and they senta valuator which we paid £315 for so doubt this was a drive by valuation but toour surprise they valued the property at £115,000 that’s £32,000 under theasking price!!!![/FONT][/SIZE]]

Would you like to pay less or more for a house?

tim123456789

kBHX wrote: »

Although its a big increase the house prices in Coventry are generally recovering better than the West Mids region as whole. Not sure the reasons but with companies such as Jag Land Rover and suppliers recruiting heavily it may have put more demand on local housing. I live near Coventry and properties here are selling back around the 2007 mark.

Not according to LR they aren't

michaelkosei

Hi all thank you all very much for yoyr replies i recieved the valuation results in the post which i was suprised about because i didnt think we would get to see the outcome of there findings,and it states that the property is that price because of the following reasons: it is in a mining area, it requires maintainace to some items as there is aear and tear i wohld need to call them tommorrow to find out what exactly requires maintaonce as the property is done to a very good standard. And also the fact of other hohouses in that area.

I will most certainly go back to the estate agents and inform them of finding and get the price reduced as it is not like is a few hundred or thousand differance its 30k!

michaelkosei

poppysarah wrote: »

Would you like to pay less or more for a house?

Obv it makes sense to pay less i wouldnt want to pay more although i dont think the owners would budge on there price

Sponge

£315 for a valuation? That's shocking. I paid nearly £100 less than that for a Homebuyer's survey! He was instructed by me directly, so I could call him and discuss the results. You need to discuss the results with your surveyor.

Have you told the EA yet? Get their reaction, and that of the vendor, to the valuation.

julieb1987

You could pay to have another survey done and see what valuation they come up with. If it's similar, it gives you more evidence to your vendors and EA. If it comes back higher, then you can dispute it with your lender. If you really want this house it's worth coughing up a couple hundred quid to get an independent survey.

kingstreet

Sponge wrote: »

£315 for a valuation? That's shocking. I paid nearly £100 less than that for a Homebuyer's survey! He was instructed by me directly, so I could call him and discuss the results. You need to discuss the results with your surveyor.

Have you told the EA yet? Get their reaction, and that of the vendor, to the valuation.

It's a set fee for a mortgage report and valuation and it includes the lender'as admin fee.

You can see them here;-

http://www.halifax-intermediaries.co.uk/products/mortgages/valuation_fees/default.aspx

kBHX

tim123456789 wrote: »

Not according to LR they aren't

May be its just my area then