Disappointed with valuation

kixxb

Bit of a grumble from me!

OH and I have decided to think about moving. The plan originally was to save over then next few years and then look to move but typically we have fallen in love with a new village that is being developed and where hoping to buy one of the new properties due for completion early next year.


Step 1 was to review our finances and did highlight that we don't have much accessible savings at the moment (around £2k). We do have more but it is locked into company share schemes due to mature in a couple of years - by that time we'll have an additional £10k.


We are now overpaying our monthly mortgage payment by 65% and saving as much as we can every month (about £700). We'd worked out that if our property sold for what we though it would be worth, then this would give us enough to put a 5% deposit down on a new build and leave enough for the relevant selling costs and stamp duty etc which potentially made a quicker move possible (although not guaranteed)


We arranged for McEwan Fraser to visit the property to give us a valuation.We gave him lots of details over the phone yesterday and he sounded very positive and mentioned that they had recently sold another property on our street - a mid terrace with one less bedroom for £82k. We paid and want £90k for ours in 2006 so that all sounded very positive.

He later called me, said he'd done a desktop valuation and spoken to a chartered surveyor and they have decided that our property is only valued at £85k to £87k and that £90k was unachievable!

I was a bit taken aback - we've spent about £6k+ in home improvements recently including new double glazing and roofline, new bathroom but apparently this that plus the extra bedroom and extra space as an end terrace is only worth £3k to £5k!!

I'm getting 3 more valuations carried out so it will be interesting to see what they say but I'm just a bit shocked that it's valued so low and this will obviously affect any of our plans to sell and move on!

DannyboyMidlands

You can get as many valuations as you like but they are all just opinions. The only way to truly test is to stick it on the market.

As an aside, I've fallen in love with Mayfair but just can't afford it at the moment. Such is life.

kixxb

I agree Dannyboy! Our ideal situation would be to negotiate a good part exchange deal with the builders based on these valuations but we are happy to accept that we might just have to stay put and save for now!

Rachylou1981

I was really disheartened with my valuation. I thought I would get at least £40K but I got valued at £33K. Mortgage currently stands at £31K.

My boyfriend is planning on moving in with me at the end of the year but we don't want to live in my house very long so I am trying to think of the best route to go down i.e. put house on market for £40K and see what happens or seek part ex advice.

I just have no clue how part ex would work as we wouldn't make any profit at all and therefore how would a deposit work? People keep saying my house is the deposit but I don't understand. I should really start a thread about that (the ones I've searched on still don't give me the answer)

Mallotum_X

Rachylou1981 wrote: »

I was really disheartened with my valuation. I thought I would get at least £40K but I got valued at £33K. Mortgage currently stands at £31K.

My boyfriend is planning on moving in with me at the end of the year but we don't want to live in my house very long so I am trying to think of the best route to go down i.e. put house on market for £40K and see what happens or seek part ex advice.

I just have no clue how part ex would work as we wouldn't make any profit at all and therefore how would a deposit work? People keep saying my house is the deposit but I don't understand. I should really start a thread about that (the ones I've searched on still don't give me the answer)

40k for a house?:eek: where about are you?

tim123456789

Mallotum_X wrote: »

40k for a house?:eek: where about are you?

You'll find a clue on the left hand side of the page

timmy

tim123456789

Rachylou1981 wrote: »

I just have no clue how part ex would work as we wouldn't make any profit at all and therefore how would a deposit work? People keep saying my house is the deposit but I don't understand. I should really start a thread about that (the ones I've searched on still don't give me the answer)

only the equity in the property can be the deposit.

If you don't have any then it doesn't work

Rachylou1981

Mallotum_X wrote: »

40k for a house?:eek: where about are you?

In the North. I know its very low. Houseprices are generally low where I am. The area we want to buy is £150+ so massive difference and so you can understand why I am so confused and unsure where to start

Rachylou1981

tim123456789 wrote: »

only the equity in the property can be the deposit.

If you don't have any then it doesn't work

Thanks. Simple answer which is so hard to find.

I knew that would be the case as otherwise the builder would be way out of pocket, they cant pay off my mortgage and give me £30K off a house for my 'deposit' which is what people have been trying to say (I think) and clearly we can't get 100% mortgage so we need some kind of deposit.

angela110660

Unfortunately, brand new houses are like brand new cars and always carry an extra price tag than the house down the road that is a couple of years older. Although you can ask whatever you think reasonable for your property, the valuation whether it is by the builders to do a part ex or a building society/bank will always come up with a different opinion. You read about people's disappointment with them often on here.
Whatever you decide to do, the mortgage you currently owe will have to come out of the money you sell for and what is left will be your equity.
Good luck - your prices are amazing compared to where I live!

Rachylou1981

angela110660 wrote: »

Unfortunately, brand new houses are like brand new cars and always carry an extra price tag than the house down the road that is a couple of years older. Although you can ask whatever you think reasonable for your property, the valuation whether it is by the builders to do a part ex or a building society/bank will always come up with a different opinion. You read about people's disappointment with them often on here.
Whatever you decide to do, the mortgage you currently owe will have to come out of the money you sell for and what is left will be your equity.
Good luck - your prices are amazing compared to where I live!

We don't actually want a new build as we prefer old houses and also want space which new builds don't often have. I just keep being told that may be the best way to get rid of my house (houses don't sell easily where I live except for landlords who want to pay even less than worth)

We are not in huge hurry to leave mine so can stay and save alot in a short period but it isn't ideal as my boyfriend doesn't really like my house for many reasons, the main one being it doesn't have a shower (I love my baths and never seen a need to install a shower).

I know I am very lucky to be on the property ladder though and also to have such a low mortgage to be able to save. I am in a better position that most people I know