House under valued by 4% by surveyor - what are my options?

amnblog

HD a successful claim against a valuation figure is a rare as an MP without his finger in the till.

Your options are:

1. Play hardball with the vendor and be prepared to walk away.
2. Make up the difference between 85% of the valuation figure and the purchase price in cash.
3. Obtain a 90% loan to value mortgage offer and pay a higher rate for it.

I would suggest my client goes option one.

Why pay over the odds for a property?

HumphreyDumpty

Hi amnblog. I did consider option 3 but as I'm porting a product I would need to keep to the same Ts and Cs. If I change lender I'm hit with the 7k ERC

Gutchy1

Having the same problem.....Seems to be a pattern developing with esurv.
We applied via the woolwich and property undervalued by 20k (see my post)
We also applied with santander who are taking an age with the application and are yet to insrtuct a valuation....whats the chances they use the same surveyor/valuation!!

amnblog

HumphreyDumpty wrote: »

Hi amnblog. I did consider option 3 but as I'm porting a product I would need to keep to the same Ts and Cs. If I change lender I'm hit with the 7k ERC

Ouch

Then it is one or two only

dimbo61

How much is the asking price £325K or £312500?

HumphreyDumpty

Gutchy1, I feel your pain!!! I have my fingers and toes firmly crossed that Santander come through for you!

Thrugelmir

What's an undervaluation? As a property is only worth what somebody is willing to pay for it. If borrowed funds are required then the lender has a vested interest in not overpaying. So easy to spend money when it's not ones own.

HumphreyDumpty

Hi Thrugelmir. Point taken - I can't argue with what you're saying

shortchanged_2

Personally I would ask, why do you want to overpay for this property?

Surely the surveyor is actually doing you a favour and trying to help you not to pay too much for the said property.

I've never really understood some buyers despair when a surveyor 'undervalues' a property they are looking at buying.

thestrayed

I am also having the same issue. Offered £141k and the valued has valued it at £130k. We are first time buyers so our only option is to try and get the seller to reduce. But this is a massive 8% from the asking price.....

I suppose we were so desperate for the valuation to be spot on because we have already invested a lot of money (paying for the survey etc). Now if the buyers don't reduce we are in a position whee it could possible be quite tight to try again without dipping into money for sols fees and deposit.