Undervalued Mortgage Survey

mattmould

Hello,

My partner and I are first time buyers and we genuinely believe we've found the perfect first house. Everything has gone smoothly from the start up until the point of the mortgage valuation.

The house is marketed at £130k
The house has been valued at £115k. The valuation report states that there is not enough comparable evidence to prove the market value.

We cannot afford the difference.
We know the owner will not budge on price.

We were wondering if it is worth either:

1. Challenging the Valuation - by trying to supply comparable evidence
2. Getting an independent valuation
3. New lender for a new valuation

Any advice would be greatly appreciated, thank you.

Matt

davilown

3 choices really:

1. Find the extra cash
2. Renegotiate the price of the house
3. Pull out of the purchase

If the valuer is correct then the vendor will have to reduce the house price unless a cas h buyer arrives.

mattmould

Thanks Davil,

The problem is that the owner tells me that the survey lasted 10 minutes, and on the report certain key points have been missed which I'm led to believe add value.

For instance, a conservatory as well as an outside utility room, both which aren't connected to the house directly, but are both supplied electricity. Neither outbuilding is listed on the valuation report.

Matt

Malmo

mattmould wrote: »

Thanks Davil,

The problem is that the owner tells me that the survey lasted 10 minutes, and on the report certain key points have been missed which I'm led to believe add value.

For instance, a conservatory as well as an outside utility room, both which aren't connected to the house directly, but are both supplied electricity. Neither outbuilding is listed on the valuation report.

Matt

This doesn't like a survey (Homebuyer's report or Building Survey), but a lender's valuation. There is a significant difference. Did you opt for just the lender's valuation?

Perhaps speak to the surveyor to discuss the points that you raise in your post?

mattmould

Yes, sorry I meant mortgage valuation.

We're probably clutching at straws, but i'll try to get in touch with the lenders surveyor.

Is it worth supplying similar houses to the one we're trying to buy to provide the 'comparable evidence'?

TBeckett100

They work on sold prices so find similar sold prices locally

Landofwood

You must be very relieved that the surveyor has saved you from overpaying 15k. Congrats you lucky so-and-so!

Prothet_of_Doom

TBeckett100 wrote: »

They work on sold prices so find similar sold prices locally

There was one particular street, that was all 2 bed terraces and 3 postcodes, and I plotted a graph of all sales since 1998, to prove to my wife that just because the agent has it for sale at a particular price doesn't mean the valuation will come close. The problem that the 4 houses sold subject to contract, had asking prices close to the asking price of the one she liked, but you can't yet see what they are going to pay, once the paperwork goes through.

Then there was another street, 30 identical houses built in 1905, but none of the surrounding roads had anything similar.
House price history on rightmove, looks like the last one sold was 6 months ago, and as far as we can tell needed a lot of work.

Now I'm worried because our offer on a perfect house which is 5% less than the asking price is 10% higher than that house. I reckon the work needed would justify the difference, but we only know it needed new windows and a front door. Right move history shows only one internal picture and it looks like the lounge was straight out of 1978. Hence my belief that it 'probably' needed a kitchen, bathroom, rewire and new heating. Probably.

Valuation on Monday.

sam2015_2

Speak to the estate agent and see what they suggest.
I'd renegotiate the price first
then appeal valuation
to go with different lender to get higher valuation-speak to mortgage broker
find extra cash

TBeckett100

The EA should have comparables. Our EA brought examples with him to show us where to pitch it