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New build valuation

mcowan77
mcowan77 Posts: 123 Forumite
Part of the Furniture 10 Posts Combo Breaker
in Mortgages & endowments
House not yet built. What do surveyors use to come to a valuation?

Mortgage will be with nationwide bs

Thanks

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Building plans and drawings. Specifications etc.

    How does a developer know what to market it for?
  • mcowan77
    mcowan77 Posts: 123 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    it is common for housebuilders to overvalue knowing that the surveyor will undervalue?
  • stalkah
    stalkah Posts: 227 Forumite
    Part of the Furniture Combo Breaker
    Why would they do that?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    mcowan77 wrote: »
    it is common for housebuilders to overvalue knowing that the surveyor will undervalue?

    People buy for cash as well.
  • cashbackproblems
    cashbackproblems Posts: 1,826 Forumite
    mcowan77 wrote: »
    it is common for housebuilders to overvalue knowing that the surveyor will undervalue?

    I have just gone through this issue helping my brother to buy a new build. They don't "overvalue knowing the surveyor will undervalue", but if its in a high demand area e.g. London where people are buying with cash/high deposits and above market price, they do not care what the true market price currently is and people will find the extra money

    In lower demand areas new builds will usually drop their price slightly either before purchase or afterwards if the surveyor comes with a lower valuation.
  • kingstreet
    kingstreet Posts: 39,350 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    We're newbuild specialists and I can't remember the last time we had a down-valuation.

    It usually only happens on the first plot on a site when it first opens and the prices are being settled.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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