VERY Low Valuation! Help Please

kingstreet

Gather comparables for an appeal.

Nationwide basis is similar property sold within the last 120 days within 0.5 miles of the subject property.

FWIW a newly converted property is treated as a newbuild if it has not yet been occupied in its current condition.

dunstonh

I'm very cyncical about the whole process. I'm not entirely sure the appeals process, which is overseen by people who only have an interest in keeping this valuation low, will be fairly and carefully considered. Also it's hardly in the surveyor's interest to completely backtrack too much as it could well damage his reputation.

If the valuation is low, Nationwide dont lend the money and dont earn a thing.

The valuer may not need to backtrack. With you getting nothing off the asking price, a 15% reduction for a new build 1 bedroom flat in one of the poorest parts of London doesnt sound at all unreasonable.

If you really want the property that much then go back to the builder/estate agent and reduce your offer on the basis of valuation.

farley_85

This is all really useful information! Thanks to everyone for contributing.

I acknowledge that I probably laid the blame with the surveyor at first because his valuation was resulting in a more expensive mortgage and putting the whole process in jeopardy.

I have put together a list of comparables (7 in total). If you break them down into £/sq ft a valuation of £475k looks very sensible. A valuation of £400k puts £/sq ft at almost £90 below all the comparables.

Based on what some of you are saying there is clearly an issue with it being a 1 bed. I would have thought a surveyor, even if it is a basic valuation, would have to look principally at sq ft. £475k for 890 sq ft in Hackney (London Fields), is comparable on a sq ft basis but i accept is ALOT for a 1 bed if you look at it that way.

It just seems a bit strange that if I went and put up an internal partition and fitted a door to make another bedroom it would be worth much closer to the asking price.

also in his report he listed it has NOT being newly converted or refurbished so surely this means it wouldn't be treated as a new build?

What would people's advise be if the other 2 valuation reports came in for the adjacent properties (almost exactly the same as ours) and were much closer to the asking price? Regardless of whether people think £475k is a lot for the property (I personally think it is reasonable given the size of the flat and area, and considering comparable properties) would this point to an inaccurate valuation by our surveyor?

I am currently in the process of appealing so will see what comes of that. It will also be interesting to receive these other valuation reports.

Again thanks so much for the help!

farley_85

DUNSTONH...

If the valuation is low, Nationwide dont lend the money and dont earn a thing.

That doesn't seem to be the case with our mortgage. Their reaction to the valuation was to tell us we needed to choose a different mortgage product and increase our monthly repayments because of the difference in our LTV. Isn't it also a general tactic of lenders to devalue properties? We are also getting a VERY good deal off them because we are both customers and it has crossed my mind that they may be trying to backtrack.

Also, whilst it may be one of the poorest areas of London, surely it's important to look at comparisons? And the market shows, as it is now, that the property (again, based on £/sq ft) is a reasonable price (okay maybe a little overpriced but that's estate agents for you).

Thrugelmir

farley_85 wrote: »

In my professional experience a surveyor should be looking at sq/ft and not no of beds

That's a very American concept.

Configuring floor space to maximise it's potential isn't as easy as sticking up some stud walls. Been there myself. Location of services, windows and meeting fire regulations all play a part. 2 bed normally makes for a far more sought after property.

hcb42

why dont you show the developer the survey, better to get £75K knocked off than overpay now, and be in negative equity the second you move in.

opinions4u

It never ceases to amaze me how many people get so emotionally wrapped up in a property purchase that they are get naffed off when a surveyor hands them an opportunity to save a fortune!

_Andy_

Buyer: Hello professional surveyor/valuer, I'd like to pay you so you can tell me how much the property I want to buy is worth. You know, cos it's a huge purchase and all.

Surveyor: Sure, well actually you're overpaying by a considerable amount - tens of thousands! Just as well you asked!

Buyer: Don't be stupid, I know far better than you and I would love to lose vast amounts of money instantly!

opinions4u

16%? Put it this way, my first offer for a property has always been 20% below asking price. I've always ended up paying between 10% and 15% below.

farley_85

Unfortunately all house prices in this area of London are going for OVER the asking price, so if you go in under you won't stand a chance. We were lucky to get it for asking