Bank verses Estate Agent valuation?

Thrugelmir

harpoboy wrote: »

Equally no vendor, no purchase

... but the property still has value.

Many sellers aim is also to cover the mortgage. So selling prices are influenced by what sellers need to achieve.

bclark

Out of interest how common an event is it that a survey down values a property?

Reading this forum you would sometimes think it happens all of the time but I appreciate its not really representative, I would just be interested to know if its actually quite rare.

opinions4u

bclark wrote: »

Out of interest how common an event is it that a survey down values a property?

Reading this forum you would sometimes think it happens all of the time but I appreciate its not really representative, I would just be interested to know if its actually quite rare.

In a strong housing market, exceptionally rare.

In a stagnant market such as today's my completely unverified estimate is somewhere between 25% and 50%.

bclark

opinions4u wrote: »

In a strong housing market, exceptionally rare.

In a stagnant market such as today's my completely unverified estimate is somewhere between 25% and 50%.

Between 25 and 50% of all properties are down-valued by the survey!!!!???

harpoboy

I've bought six properties and sold a similar number over the years, and most come in at the agreed price.

I've had one undervalued by £4k, and one come in almost 10% more than the price I offered.

So, from personal experience, I'd say its very rare.

It was probably more common when house prices were falling in 08/09. Now that prices are slowly rising, I'd imagine it is uncommon.

opinions4u

bclark wrote: »

Between 25 and 50% of all properties are down-valued by the survey!!!!???

The brokers will be closer to it than me.

Let's hear what they have to say.

bclark

opinions4u wrote: »

The brokers will be closer to it than me.

Let's hear what they have to say.

What are you basing your estimate on? Experience, knowledge, just guessing?

opinions4u

bclark wrote: »

What are you basing your estimate on? Experience, knowledge, just guessing?

Experience. But it's not current.

bclark

I have to say I do worry about a surveyor effectively doing a desktop valuation on our house as we did have one estate agent do that.

We live on a street of houses that look quite similar from the front but differ quite a lot out the back, with some far larger than others. This can lead people to assume that the house two doors down is the same type when it isn't.

I also worry about them looking at what we bought it for in 2004 and just using an algorithm for what it should be now as we have sold for about 45% more than we paid back then. On the face of it that looks like a big rise but the house was an absolute wreck and we have renovated it from top to bottom.

kingstreet

Desktop valuations aren't used for purchase cases.

Desktops are used for product transfers, or customer retention products where existing borrowers are going back to their current lender for a new deal.

They may also be used for low loan to value remortgage cases, but this would more typically be a drive-by, by a surveyor.

Purchases and higher LTV purchase cases are normally done by a surveyor internally inspecting the property and backing his opinion with the recent sales figures for three comparable properties.