Surveyor undervalued property

beecher2

x_raphael_xx wrote: »

We've just had our house valued, and one of the estate agents sold the house next door. The price was agreed at £116,000, but when the surveyors had a look at it, they refused to allow the sale for any more than £110,000.

the surveyor can't refuse to allow a sale for more than £110,000 - people can pay what they like for a property. The LTV would've been calculated using £110,000 but if you're buying in a 'hot' property market, people often pay over valuation.

monty-doggy

Has the bank actually said they won't lend? My valuation came back lower than my offer but the bank didn't say they wouldn't lend to me.
As it happens I tried my luck and told the seller the bank wouldn't lend and I got the 8k reduction. You could try getting a reduction from the seller then contact the bank see what they say.

mrginge

I recently went to buy a washing machine and saw one that i really liked. It was up for £599.
After looking for advice and reviews I asked two people who i know whether they thought £599 was a good price.
The first one worked for a manufacturer and has a good knowledge of the washing machine market and areas such as expected lifespan and build quality. He said that really i shouldn't be paying more than £500 for what i wanted and there were other models that were slightly different, but were actually just as good. I was a bit concerned at this as i like the nice buttons on the model i had chosen.

The second one worked for a high street electrical retailer and sells washing machines for a commission-based living.
He soon cleared things up for me, as he explained that the first bloke didn't know what he was talking about and that if i went back to the shop and offered 580 i'd probably get a deal.

Thank goodness i listened to him as now i have the washing machine (and some free bold) i wanted for £585! That is £14 profit! If i'd listened to the first guy i'd probably still be looking for a washing machine and would no doubt end up with one without that digital display or easy close door.

Sometimes i wonder about these so called 'experts' who clearly have no actual knowledge of the markets they work in.

Halle71

We are in the same situation but we are the vendors.

We live in a 'hot' area of SW London where nothing on adjoining streets that have completed and been published come within £200k of our asking price. Sounds bonkers but anything published was on the market a year ago and they are literally all dumps (we saw a lot of them as they were in the price range for our BTL). And a lot has changed in a year.

The surveyor down valued us by a massive £140k. To, ironically, the exact price we had it valued at last summer when the houses above that they are now comparing it to, were for sale. Not sure why or if its true but our EA told us they ignored the 8 compatibles they supplied.

Our buyers still want the house - they are selling a flat in the area and saw 15 houses the day they saw ours so they know the market. They contested it with their bank but they wouldn't accept a new survey but luckily their deposit is large enough for them to buy it if we drop the price by £20k which we have agreed to.

As the market settles a bit, I agree that maybe it was a little overpriced (it went under offer at asking price within 48 hours though) and feel that this is affair solution.

x_raphael_xx

princeofpounds wrote: »

No, the surveyor's downward valuation means that the lender will lend less, not that the property is being offered for less money.

Oooooooooooooooh!!

ConfusedFTBx

I keep questioning my judgement about whether the house really is worth what we offered initially.

The problem is that there are no true comparables in the local area- all of the other terraces have galley kitchens (or kitchen diners that have been knocked through) and they all have small yards rather than the large kitchen and 40ft garden the property we are interested in has. These anomalies are down the the plot being a different shape.

So although there are a couple of 2beds that sold in the area for around £110k a year ago, I really don't think it's rose tinted glasses which are making me see the one we offered on as superior.
Since then all the sales I can see have been for £120 +/- 3k.

I know it sounds daft to be quibbling over a couple of thousand but as a percentage of the purchase price it's quite significant!

justjohn

negotiate hard, tell them you are skint and bank will not lend on it.
You want it for £109,000.


(don't tell them you are going to bend over backwards do triple sommer saults and find someone to revalue and pawn the family silver, to purchase there house)

slt1969

My house was valued by countrywide surveyors (appointed by Barclays) at 250k in April 2015 for my Barclays Mortgage when I moved across to them from HSBC, then when I asked for a further advance 12 months later in March 2016, a different surveyor appointed by Barclays valued it at a staggering 220k, some 30k less despite prices increasing by between 3.8 - 9.5% in East Anglia between April 2015 - April 2016!! Based on the new much lower valuation they have refused the further advance. I believe I have been misled and ill advised by Barclays as I believed they are professional and the 250k valuation appointed and agreed by them 12 months prior was accurate and sound enough for Barclays to advance my mortgage on, which they did. I have elevated the issue to specialist mortgage complaints but they have come back and said they are standing by the much lower valuation as they have to respect that the newly appointed surveyor (Philip Noble & Son in Norwich) has carried out the valuation based on local sold prices and comparative properties. We can't find any houses of the same or closely similar specification for less than 275k within a 5 mile radius. I have since had 3 further estate agents out and asked them for a genuine, lowest honest sale price and they have all come back stating that they are very shocked at this extremely low valuation and that we should expect to get firm offers between 250k - 265k but all said not a penny below 250k. So my questions are, what is going on with these so called surveyors? Are they undervaluing houses on the instructions of the banks? What can be done to stop this very poor practice happening? How can they justify valuing a property 30k less than it was valued at 12 months earlier when house prices have increased in this area? I am completely baffled by these surveyors because after all it is just their personal opinion, and in my case, a very warped opinion. In my opinion the book stops with Barclays because they are the ones who appointed this surveyor and they should stand up and be accountable and take responsibility for this fiasco. I do believe that Barclays and other banks are hiding behind these third party surveyors and they should stop this pathetic practice and start treating their customers with a bit of respect and decency. Has anyone else encountered a similar nightmare?

ScorpiondeRooftrouser

Why on earth do you think anyone has to lend you more money than they want to?