Valuation lower than agreed price

Morgage_Confused

How does it compare to these for sale down the same road....bear in mind these are only asking prices so expect actual to be lower.

semi 111k
http://www.rightmove.co.uk/property-for-sale/property-43550213.html

been on sale since april, recently dropped to 105k
http://www.rightmove.co.uk/property-for-sale/property-41353466.html

Morgage_Confused

Zoopla values it at 105k. zoopla is far from perfect though.

http://www.zoopla.co.uk/property/33-kirkdale-avenue/coventry/cv6-4ln/5669885

Morgage_Confused

In my opinion they paid too much in 2007 for the property at 112k.
Only 1 year earlier next door went for 92k....so theres the 20k right there.

opinions4u

hazza74 wrote: »

I always find sarcastic comments baffling too.

We just want some advice is it wrong to ask ???

No, it's sensible to ask. But you are asking, if I've interpreted correctly, from a point of view of "We are totally desperate to get this house and will do / pay whatever we gave to, because we're emotionally wrapped up in the purchase".

The valuer has, potentially, handed you a golden nugget to help you negotiate the price down. If you choose to pay over the odds but then need to move on in a couple of years you could find yourself with a rather painful negative equity.

The surveyor is obviously working for the bank

I don't think that's in doubt.

who tells them to undervalue properties on purpose simply because they don't want to lend any money.

You'll find, if you look at the more recent trading updates from the banks, that mortgage lending is rising rapidly. They'll be screening out the riff-raff with credit scoring. But there won't be pro-active down-valuing taking place to avoid lending.

I found this out on google.

I won't respond to this. It won't achieve anything.

You can appeal the valuation, but I don't know why you would want to. It's possible that there's been an error. But it's unlikely. The comments above on this page suggest £105k is top end.

Most parts of the country with house valued below £120k have numerous properties on the market. My advice is to offer £100k for this one. If you don't get any leverage that gets close then pull out and buy something else.

hazza74

Ok thanks for the info.

monty-doggy

To be honest I think the property is so beautifully presented that it's very easy to have your heart strings pulled by it.

Forget the frills and lace, you could do that to any house, however if you are determined and you really love it, you will have to find a way to stump up the shortfall.

chambta

The very first thing I'd do is communicate the downvalue to the vendors and get them sweating.

adindas

hazza74 wrote: »

We put a bid in for a property which was accepted. The bank arranged for a valuation which has now come back stating that the property is worth nearly 20k less. The surveyors have undervalued this property and the vendors and myself are very shocked.

The vendors have agreed to reduce the price by 5k, what are our options?

We cannot afford to put anymore money in ourselves, would our brokers (London and country) find another mortgage provider?

Would the bank in this case Santander accept another valuation?

Could we contest the valuation?

Regards.

This is the vast majority of the case (if not all) for valuation for the bank. It is always lower or the same (never be higher)

Reason is obvious : to cover their back. Lower valuation no risk, high valuation, high risk as the buyer might find the reason to sue them in the future. Why need to take more risk.

Try to use this to negotiate with the vendor. If the vendor does not budge think it whether you really want that house because you believe it is a good price then see whether you could get more money to cover deposit then the bank is not willing to pay.

Otherwise negotiate with lender ask whether they accept second time valuation from the surveyor of your choice. If they agree and go ahead. If will cost you for surveyor but they might get a better valuation.

Unlike estate agent, Surveyor is lacking of good local knowledge regarding the property on particular region.

Jac517

hazza74 wrote: »

http://www.up-estates.co.uk/property-details/3073962/west-midlands/holbrooks/kirkdale-avenue

It is a lovely house Hazza and i can see why all this is very frustrating for u, if it helps.. i think its not that overpriced unless if the area its in is not very nice. (admin didnt like the word i had used)

Let us know how u get on, we had a valuation for our prospective house on Friday so waiting to hear sometime this week....

Good luck

Kynthia

It does seem overpriced if you look at sold prices this year in the same street. Four other houses sold this year for between £70k and £93k. I can't see the details of the £93k, but the other 3 were also 3 bedrooms and all £90k or below. Although they weren't as nicely decorated and needed more work, I doubt the decoration and a conservatory made the one the OP bid in worth a third more than them.