Remortgage Valuation VS Selling Valuation

angeljay

Not sure if right thread, had my house valued for sale in Feb 2015 and they said around 90K to sell it.

Did not go ahead with this, have looked at a remortgage this year and the banks valuation has come back at 77K which is not enough for my LTV rate

If I was to consider selling the house, wouldn't the next mortgage company value the house at the same instead of the 90K ish sales price?

Thanks

davidmcn

Probably, the basis on which they value is the same, sometimes a bit of wiggle room if they see an agreed sale price which is slightly higher.

I presume the 90K was what some optimistic estate agent told you? They usually overvalue to encourage business.

jimpix12

Who is "they" who told you it's worth £90k? An agent or a remortgage valuer?

angeljay

Hi the 77K was from a remortgage valuer, sent by the bank, the 90K was a estate agent last year.

jimpix12

Ah. Sounds like an agent over-offering to get your business. I'd say the £77k is a much more accurate reflection of the selling (not asking) price if you were to put it on with an agent.

You should check similar property sold prices nearby on the Land Registry site to be sure. Also, there's nothing to stop you putting it on the market at £90k, if you want to chance your hand, but you'd run the risk of any prospective buyers' valuers quoting the £77k figure again. It's up to you.

angeljay

I don't understand how a estate agent can say I may get around 90K for the house, would this not be valued by the buyers mortgage company and say its only worth 77K if I was to sell?

Why has the valuation company for the bank come back to low if the estate agent is so high?

pinkpiglit

Often a lot of estate agents will price high in order to get you to sign with them. Then later on down the line, when buyers say they are willing to pay the asking price, the EA will start to tell you that you should maybe accept the lower offer if you really want to sell.

silvercar

angeljay wrote: »

I don't understand how a estate agent can say I may get around 90K for the house, would this not be valued by the buyers mortgage company and say its only worth 77K if I was to sell?

Why has the valuation company for the bank come back to low if the estate agent is so high?

Estate agents overvalue to get business. Plus if someone was to offer say 85k that is evidence to the next valuer that someone is prepared to pay that, whereas with no buyers sought, the mortgage valuer is standing on his own judgement.

Valuation is an art not a science, plenty of room for opinions.