house downvalues by 10K - can i apepal?

yessuz

Meh, just got survey report, where house was down-valued by 10K and now we are above 95% LTV without possibility to increase my deposit. So what my options are now?

Can I appeal, or should i use it as basis to renegotiate the price, which, probably will be difficult...
All summer and so, similar houses in our town were sold within one-two weeks after appearing on the market, for asking price (some times even above!).

We managed to negotiate price down from asking 195 to 190 which was accepted.

Now, survey say it's value is 180... which is totally unrealistic, as such price is for run down ones, while one we want to buy is fully refurbished.

Funny_old_game

Change lender hoping the new one doesn't use the same valuer.

By the time you have appealed, sent evidence, and got the queen to have a look, the vendor would likely have had enough.

Contemptuous

Ask your adviser if there is an appeals process. They may ask for comparables to submit to the valuer.

kingstreet

yessuz wrote: »

Now, survey say it's value is 180... which is totally unrealistic, as such price is for run down ones, while one we want to buy is fully refurbished.

Comparables?

Actual recent sales (last four months) of similar property in the vicinity (less than 0.5 miles) as this is what surveyors use to justify their valuations.

No EA marketing appraisals, no "on the market" prices, actual sales?

This is what you will need if you are going to successfully challenge a RICS surveyor. Ask the selling agent what comparables they supplied, if they were asked.

csgohan4

is it overpriced?

yessuz

csgohan4 wrote: »

is it overpriced?

no, I wouldn't say it's overpriced.

basically, houses in my town (which last year I believe was in top 10 most sough after market towns in UK by Telegraph I believe, with house value rise in 2011-2015 by 25%), if they are sold as run down (meaning, needs extensive refubishment, including new boiler, new kitchen, etc. then you can find similar for 170-160, depending on location.

this one is fully refurbished through out, very nice finish, basically at the state when you just move in and do not need to do anything. At all.

There are two, now at similar finish. one's asking price is 10K higher than current we are looking for, another one is the same asking price as vendors.

the one for the same asking price is in much worse location. the one with 10K more than ours asking price is on the comparable location.
there's another one, older, "victorian", similar fisnish, that one is for 100K more on the market than the one we are trying to buy.

Usually, such property is being sold in less than a month, for asking price (have examples).

vendors bought the same house for 156k in 2012...

talked to agents regarding the valuation - they asked me if I could provide the valuation as evidence, in order to re-negotiate with vendors.
then I talked with "case administrator", she said that "lenders provide such valuation only if offer is accepted".
when I asked, how did they evaluate the property (i.e. did they went inside?) I was told, that "I do not know, maybe they just drove through".
- is this real?! Maybe there's massive extension on the back?! how should I know, if valuator went in the house? Of course they didn't. they just looked at market, without looking in the details.

so now i am on the situation, that I need to renegotiate the price... for which I will need a valuation, which I cannot get... or I need to look for another lender.

Lender is Santander.
broker is LandC

also - how will this affect my credit reports and other stuff?

csgohan4

You can show them the valuation and try to negotiate, no harm in asking, worse case they say no and you have to find funds elsewhere

yessuz

csgohan4 wrote: »

You can show them the valuation and try to negotiate, no harm in asking, worse case they say no and you have to find funds elsewhere

well, the broker told me (on friday) that they do not provide the valuations until the mortgage is accepted from our side...

which sounds quite silly, to be honest.

Thrugelmir

yessuz wrote: »

this one is fully refurbished through out, very nice finish, basically at the state when you just move in and do not need to do anything. At all.

Refurbishment doesn't add as much value as one might think.

How old is the property?

yessuz

Thrugelmir wrote: »

Refurbishment doesn't add as much value as one might think.

How old is the property?

it was built in mid nineties i would say.

Probably, it might not add much of value, but if houses you use for comparable are some older and in much worse condition and location, additionally requiring at least 20K of investment in order to achieve the state of the one we are trying to purchase (you know - new kitchen, new boiler, etc), this should be taken into an account.

Just talked to REA. They said, they got the right comparables in order to justify the asking price, therefore I need to discus the re-valuation of the house.

MortgageMamma

I think you must be a little more insistent with L&C, you are paying them indirectly after all - they should be telling you how to get comparables and appealing it for you. Its what a good broker does - but with L&C being a fee free model I doubt you'll get that level of service. I appreciate not everyone sees the value in paying for advice but this is just one example of what a broker fee would pay for - sorting out the mess when things aren't working out. I know people are saying challenge the valuation but if that doesn't work how about asking the vendor to meet you half way on the down valuation? If you do choose to use another lender be careful they don't use the same firm of surveyors or you could land in the same boat.