A question about the valuation report

ItsyBitsySpider

Hi All,

So, my lender has finally issued the mortgage offer. The valuation was instructed by the bank and we had our own structural survey.

There is a comment in bank valuation report addressing the mortgage applicant:

"We do not warrant that the purchase price is reasonable"

Still the house is valued exactly equal to what we have agreed to pay i.e. 260k.

My question is why do they value it at £260k if they don't warrant the purchase price is reasonable.

Any response will be highly appreciable as I am a firt time buyer and literally clueless about these matters.

Many thanks

kingstreet

They think it protects them against the lender suing them if they are later found to have got it wrong.

It means nothing to you.

ItsyBitsySpider

kingstreet wrote: »

They think it protects them against the lender suing them if they are later found to have got it wrong.

It means nothing to you.

Thanks kingstreet for your reply. I wish I could send a box of chocolates to everyone on this forum once I am through the purchase

Does this not sound contradictory. It is like saying yes, the house value is 260k, you are paying 260k still we cannot say it is a reasonable price. Am I missing here something?

What makes me worried is that our own surveyor has also made a comment along the similar lines. Housing prices are on rise and properties are scarce so we surely have not got a bargain.

Senior_Paper_Monitor

Like most things in the financial services world every action and particularly written word is considered in light of professional indemnity risk.

A natural reaction to the 'it must be someone's fault - except me' and 'I want to be compensated' culture we live in fuelled by the claims specialists.

kingstreet

ItsyBitsySpider wrote: »

Thanks kingstreet for your reply. I wish I could send a box of chocolates to everyone on this forum once I am through the purchase

Does this not sound contradictory. It is like saying yes, the house value is 260k, you are paying 260k still we cannot say it is a reasonable price. Am I missing here something?

What makes me worried is that our own surveyor has also made a comment along the similar lines. Housing prices are on rise and properties are scarce so we surely have not got a bargain.

The mortgage report & valuation is prepared for the lender, not for you, so the comment is aimed at the lender.

It's all about the litigious society in which we live, as SPM correctly asserted.

TBH you aren't going to get anything different if you went to twenty different surveyors, so sadly you accept their viewpoint and get on with it, or repeatedly bang your head against the wall, then retire to a darkened room repeating the word "wibble," ad infinitum.

Prothet_of_Doom

kingstreet wrote: »

They think it protects them against the lender suing them if they are later found to have got it wrong.

It means nothing to you.

They do not warrant (ie will not be held responsible) that the purchase price is reasonable.

They by implication, have no evidence that it should be lower, or higher, so therefore it's pointless for them to charge to value it.

ItsyBitsySpider

kingstreet wrote: »

The mortgage report & valuation is prepared for the lender, not for you, so the comment is aimed at the lender.

It's all about the litigious society in which we live, as SPM correctly asserted.

TBH you aren't going to get anything different if you went to twenty different surveyors, so sadly you accept their viewpoint and get on with it, or repeatedly bang your head against the wall, then retire to a darkened room repeating the word "wibble," ad infinitum.

That made me smile kingstreet specially the bit about retiring to a darkened room repeating the word "wibble" lol.

ItsyBitsySpider

Prothet_of_Doom wrote: »

They do not warrant (ie will not be held responsible) that the purchase price is reasonable.

They by implication, have no evidence that it should be lower, or higher, so therefore it's pointless for them to charge to value it.

Exactly my point, if they can't ascertain/certify/warrant the valuation, how come they charge this ridiculous amount - beyond my FTB brain TBH :D

kingstreet

Prothet_of_Doom wrote: »

They do not warrant (ie will not be held responsible) that the purchase price is reasonable.

They by implication, have no evidence that it should be lower, or higher, so therefore it's pointless for them to charge to value it.

You might think that, Prophet...