Surveyor undervaluations

Wolfgang

Hi all,

I wonder if anyone else is/has /going/gone through this situation. We have already missed out on two properties over the last few months:

1 - through not have a buyer and unable to proceed as quickly as the vendor would like. When we saw the place the vendors hadn’t found anywhere to go, then low and behold, the next day they had and we we’re left back to square one.

2 - through a vendors greed due to him (quite rightly, most people would say, I’d imagine) not accepting our reasonable offer being told by the agent, that as we were in a proceed-able position due to getting a full asking price offer on our place, that it was more than significant offer after being on the market for three months and reducing his price three times.

We’re now, after being tempted by the selling agent to look at a place over our initial budget, in the position that we have had an offer accepted (on as-if vacant possession that has been re-furbed so no onward chain), mortgage agreed in principle, and have carried out all the necessary searches and got the legal ball rolling and well advanced. We’ve just had the result of the lenders valuation and that has come in 35k under our offer and 50k under the agents guide price.

The selling agent has basically said cant we come up with the 35k?

We’re currently going through the appeal process in respect of the re-evaluation and are hoping for some upwards movement, although the surveyor appointed has apparently got previous for under-valuing and hasn’t yet changed his mind.

The selling agent has been quite sneaky as they have spoken with our mortgage broker and told them that we’re prepared to meet the difference and what would this mean to the mortgage. This would mean we have an 85/15 mortgage instead of the 80/20 that we want and the better rate.

We’ve since found out that if the survey doesn’t move the vendor is unwilling to do anything and will hold out for the price we offered.

Basically, the agent is saying it's the surveyor who is in the wrong and not their valuations. They said that the vendor went with us (despite having an offer 10k over ours on the table) because we were the most advanced and that is proof enough that the property is worth as much.

The comparables that they provided were so bad that our mortgage broker had to dig out a whole load of better examples from our [company linked] selling agent.

As you can imagine this is all extremely stressful and not what we want after going through the whole pain of trying to sell and then trying to find a property.

Anyone got any hints, tips word of advice/consolation?

Gonzo1987

Have you raised a query with your lender regarding the under valuation - Why is it £35k under? Does the property need work doing to it to amount to that much? Have they requested any specialist reports?

Before even considering meeting halfway or anything like that I would want to know why the difference is so huge.

The selling agent is contracted to work on behalf of the seller to get the best price possible for them - I'd ignore what he is saying, until you get clarification about the valuation figure and move from there.

Wolfgang

The house was owned by an elderly lady who has probably lived there for a fair few years and originally, as we only very recently found out by chance on Zoopla, marketed the place last August for 200k less than the current asking.

Her 'Nephew' (That's all we know) then apparently carried out 90k of work (including a corner extension to the chalet property) between Sept-Sept and the place is perfect for us (a young family with no desire to do any DIY or live in a building site), meaning we can move right in.

We have asked for a re-evaluation and that is were we currently are. Our selling agent (who has been very useful here) advises us to do the same as you mentioned. He say's that if we have to pull out the vendor might react differently.

Edit: The surveyor initially said that there were no properties in the area that were comparable.

Gonzo1987

If there are few comparable properties in the area then how do you know the agents asking price was fair?

Wolfgang

What if I told you that the house next day is currently on the market for £ 120k less after just reducing it's asking price since we had our offer accepted? Almost a before/after as the next door house needs a complete overhaul and the corner extension.

There are other houses in the street currently for sale/sold and also houses in the surrounding area that could be classed as comparable. And, they are the options presented by our seller.

Wolfgang

Bump as we could really use some advice. Thanks in advance.

Gonzo1987

Wolfgang wrote: »

What if I told you that the house next day is currently on the market for £ 120k less after just reducing it's asking price since we had our offer accepted? Almost a before/after as the next door house needs a complete overhaul and the corner extension.

There are other houses in the street currently for sale/sold and also houses in the surrounding area that could be classed as comparable. And, they are the options presented by our seller.

If the houses aren't the same in terms of size and building material they aren't direct comparables, the agent wants comparablea to back up the figure he's given to the vendor. He could well have valued on the generous side to get the instruction.

I would wait.to hear what the surveyor has to say. Because if there is that big a difference in the valuation figure and asking price the vendor will need to consider cooperating and renegotiaring the sale price. As it could well happen again with another buyer.

I'm curious to see what work has been done to add 200k to the asking price.

Wolfgang

Front corner extension added which gives an en-suite and family bathroom. The old bathroom becomes a third bedroom upstairs.

Downstairs has part of the study/box bedroom taken and turned into a downstairs WC. Kitchen wall removed to make a kitchen/diner with brand new appliances installed.

As I said, it was only in the last couple of days we found out that it was originally on just over a year ago for 200k less. The argument I've been having with the selling agent since the evaluation is considering the next door property has 100k of work been carried out, and that is what an surveyor worth his salt would surely ask as well, no?

Gonzo1987

It would be unusual to see a return of that amount in the short time since the extension was built.

The surveyor will look at the property as it stands at this moment in time right now. The house next door if on the market or recently sold may be used as a comparable providing it is suitable.

Wolfgang

The surveyor is Countrywide. Who seem to be quite notorious for this sort of thing. They also seem to be one of the biggest out there used by lots of lenders. Does anyone know of any lender who doesnt use them if we choose to try with another lender?

FTB_Doll

We has esurv our mortgage is with Santander x