Advice on House Valuation Please???

seth0571

Hi All,

Was hoping someone could give me some advice regarding bankruptcy and house values. Basically my OH is going through BR due to business failure (both currently unemployed & paying mortgage through family members- waiting to hear about job offers for myself OH signed off with stress/breakdown). The house is in his name & as we were both employed by company my wages were kept low so not attached to mortgage / deeds etc..
Our main worry (and I mean really worried) is our house, house prices have shot up by over 7% in last 3 months which means we think we may have positive equity in home.
What I need to find out is how the OR will accept a value on a home, have read that it's 3 valuations BUT we had an estate agent come in & priced our house 10k higher than we expected due to the buyers market (he did say would probally sell for less). What I cannot understand is the OR relying on 3 estate agents valuations which would vary & also include their selling fee (usually 1.5-3%).
Have also read that its upto the OR to decide whether to except an offer to but back the BI or wait for the 2years 3months scale to look again (although on the Insolvency site it does state they must not be swayed by housing booms / crashes) Surely a surveyors report which would cost us but would be a truer value be better? and would the OR accept this?
Have read into the housing boom & if we wait we think the equity could rise to over the 10k mark. We are not trying to be greedy or swindle the OR but would like some clarification over the property valuation ie could you argee high valuations given by estate agents carry their selling charges?
Really wish i had mates in the estate agents field if this is the case!! Sorry for long post just going round in circles & have researched so much I could quote the insolvency act- lol!
Many thanks in advance

woodformoretrees

Our house is being sold and we have had a valuer around on behalf of the OR (IP).
Been told they will give us a price for us to buy my interest out, and a price for sale on the market.
If you invite an estate agent around ask them for a quick sale price. I'm presuming (and maybe wrongly) that you're after a low price so you can buy out the equity?

seth0571

Hi Woodformoretrees,

Thanks for the reply so the OR has arranged this valuation for you? Can I ask at what stage in your BR are you? We are at early stages & asked for quick sale price when estate agent came around don't think he gave us this as told us if we kept house on market for 6 weeks we could get 135k. Figure if we asked for a forced sale value this would appear in the report which the OR would take into account.
What are you going to do but the BI? I really hope you get it sorted it's a horrible thought that a house you want to keep may be lost. I'm unsure as what to do there are more buyers than sellers at this point but know that could change & could be looking at a different position in 3 years. Thanks again & let me know how it all goes for you fingers crossed for you all xx

woodformoretrees

seth0571 wrote: »

Hi Woodformoretrees,

Thanks for the reply so the OR has arranged this valuation for you? Can I ask at what stage in your BR are you? We are at early stages & asked for quick sale price when estate agent came around don't think he gave us this as told us if we kept house on market for 6 weeks we could get 135k. Figure if we asked for a forced sale value this would appear in the report which the OR would take into account.
What are you going to do but the BI? I really hope you get it sorted it's a horrible thought that a house you want to keep may be lost. I'm unsure as what to do there are more buyers than sellers at this point but know that could change & could be looking at a different position in 3 years. Thanks again & let me know how it all goes for you fingers crossed for you all xx

Yes, we're not able to buy the BI. There is a lot of equity in the property. OH, luckily, is joint owner though so we won't walk away with nothing. So we're in the opposite position and we're keeping fingers cross for a good valuation

Losing the house seemed like the absolute worst thing in the world pre-BR but we're just looking on it as an adventure...(what doesn't kill you, etc, etc)

I seem to remember back in the early days of BR we were told we could get three valuations and let the OR know we were interested in buying the BI but because we weren't in a position to buy out I didn't really pay too much attention.

Have OR contacted you - my memory tells me that we received an official letter from OR asking whether we wanted to consider buying their interest.

seth0571

Aw no- fingers crossed the valuation will be high! Still early days yet so not even had the OR interview yet. Know what you mean about a new adventure though, it's the only way to look at these things. Hoping the the housing boom will be good news for you (and we can sort something out- lol!) Just annoyed that the OR doesn't appear to take into account the estate agents cut & how you can get so much difference in valuation. Let me know how it all goes xx

woodformoretrees

seth0571 wrote: »

Aw no- fingers crossed the valuation will be high! Still early days yet so not even had the OR interview yet. Know what you mean about a new adventure though, it's the only way to look at these things. Hoping the the housing boom will be good news for you (and we can sort something out- lol!) Just annoyed that the OR doesn't appear to take into account the estate agents cut & how you can get so much difference in valuation. Let me know how it all goes xx

Ah, very early days then. I think that you will find that the price that you will be quoted to buy out BI will be minus the costs that would be involved in putting a sale to a 3rd party through. So, talking stupid figures, but if there was £1000 equity and the sale costs would be £550, then you would be expected the £450 figure. (equity minus sale costs)

Someone here will know for definite about this.