Surveyor's mortgage valuation lower than surveyor's market valuation

samka

Hi there,

long time reader of the forum, first time poster, looking for advice.

My partner and I have recently had an offer accepted on a house for 310,000. We had a mortgage approved and chose to have the homebuyers report done through our lender i.e. alongside the lender valuation. We received the homebuyers report and it stated in writing that the valuation of the home was 310,000. However, we then received a call from our lender to say that the valuation had come into them at 300,000. We have now chased this up with the surveyor and he confirmed that he did in fact give a different valuation to us than the lender, as apparently with mortgage valuations they are 'more conservative'. This puts us in a bind, as we are not likely to be able to negotiate down the sellers by another £10,000, as they were hesitant to accept our offer of 310,000 and took quite a bit of time accepting the offer. At a valuation of 300,000, our lender has offered us £9,000 less in mortgage so we need to make up the shortfall if we cannot negotiate the sellers down.

I have never heard of this practice of providing one valuation to the buyer and another to the lending company. Has this happened to anyone else? How is it possible for the same surveyor to value a house differently to the buyer and the lender? And more to the point, are they allowed to do this?

Any advice anybody could give would be great.
Thanks

Thrugelmir

Value is subjective. £10k on £300k is only 3% difference.

Negotiate with the vendors. As in your interests to do so.

dunstonh

I have never heard of this practice of providing one valuation to the buyer and another to the lending company.

Very common. Valuations are based on different criteria. In a stagnant or falling market, lenders tend to instruct their valuers to price cautiously and often for a sale within two weeks to a month. A vendor may well be willing to wait longer than that for an acceptable offer. So, that price would be expected to be higher.

And more to the point, are they allowed to do this?

Absolutely can.

bigadaj

Poor practice though, if the surveyor is worth his salt he should be supplying one number, conservative if needs be. The value of the property is obviously whatever an individual is prepared to pay for it, but it is a single value after all and that is what a values shold commit to.

gazter

bigadaj wrote: »

Poor practice though, if the surveyor is worth his salt he should be supplying one number, conservative if needs be. The value of the property is obviously whatever an individual is prepared to pay for it, but it is a single value after all and that is what a values shold commit to.

If it was the same person doing the survey (as it seems) this is not only poor practice but border line corrupt. It gives the impression that he is taking part in a deception.

That is of course, unless one valuation uncovered something that was materially different, but missing in the second.

He might not be so cocky if you told him you were taking the story to the local press.

mozzer1966

i have an intresting senario?
my house has been on the market and i have accepted an offer on it. a surveyor as completed a survey and said the hose is in A1 condition but has valued the house £4.5k less because the house is on a hill.
for mortgage purposes i thought the house which is in "A1 condition" with no faults coming up on the survey. with coparable houses easily within the same price bracket with in the area. Just because the house is on a hill, and may i add on a road, result in the house being valued less just because it is on a hill??

Thrugelmir

mozzer1966 wrote: »

and said the hose is in A1 condition but has valued the house £4.5k less because the house is on a hill.

Never had a surveyor comment on my hose.

As for the hill. May put some people off if its a steep incline. As winter conditions can make life difficult.

mozzer1966

Thrugelmir wrote: »

Never had a surveyor comment on my hose.

As for the hill. May put some people off if its a steep incline. As winter conditions can make life difficult.

think its obvious i meant house not hose!!!!!!!!!!!!!!!!!!!!!!!:mad:

mozzer1966

Thrugelmir wrote: »

Never had a surveyor comment on my hose.

As for the hill. May put some people off if its a steep incline. As winter conditions can make life difficult.

as well may be, but a mortgage valation is taken on the condition of the house and in my area which is in a valley 80% of the houses are on hills

Thrugelmir

mozzer1966 wrote: »

as well may be, but a mortgage valation is taken on the condition of the house and in my area which is in a valley 80% of the houses are on hills

Surveyor is employed by buyers lender. So they'll decide the criteria on which they value the property.

mozzer1966

Thrugelmir wrote: »

Surveyor is employed by buyers lender. So they'll decide the criteria on which they value the property.

they are also employed to be consistant, i only bought the house two years ago and nothing was mentioned on the survey about the hill?

three estate agents i have spoken to have never heard of thi as being a reason to devalue the house price

prehaps because the company is E SURV lol