Valuation vs HBR?

ChrisW33 · 12 February 2015 at 6:33PM

Hello,
I'm after a bit of advice please. We made an offer on a property (£240k) and it was valued by the bank at that, however they failed to carry out the HBr we requested, so we commissioned our own. This came back stating works totalling around 20k! We've discussed this with the vendors EA and him but after viewing our HBr he's saying he won't budge on the price and the EA keep bleating about the banks valuation being more valid. The issues cited are roof work and retaining walls, all listed as 3's (the stream bank has actually collapsed!). We asked for a 20k reduction but also said we'd get quotes and take it from there. Anyone been in this situation? Oh we're moving into parents too but at this moment I'm thinking the property is best let go ?

benjus · 12 February 2015 at 6:40PM

Did your surveyor produce a valuation of the property? If so, what was it? Just because £20k of work is required or recommended, doesn't necessarily mean that the bank's valuation of £240k is wrong.

ChrisW33 · 12 February 2015 at 6:49PM

£220k by our surveyor

bris · 12 February 2015 at 6:52PM

You often find that banks valuation is pretty much spot on and their valuer may very well know it needs some work doing. Banks tend to under value now rather than risk another boom and bust fiasco. Personally I would say your position to negotiate is weak as the issues will not be a surprise to the vendor.