Quick bank property valuation question

Zither

Hello,

Wonder if anyone else can help with some perspective on the below?

I've put an offer in on a property for £130k, which has been accepted.

However, I've just noticed that a couple of 'similar properties' (based on Rightmove listings) sold for ~£120k on the same street within the last 3 months so I'm a dash concerned that I may be at risk of paying over the 'typical' market value.

I've instructed the bank to carry out a basic survey on the property and, as a buyer, I'd be keen that the bank compares its valuation against prices of 'similar properties' in the same street that sold for less.

Does anyone have a feel for how much of an impact recently sold property prices on the same street will impact on a bank's valuation of a property?

Thanks!

Zither

jimjames

I guess it depends how "similar" they are. If the valuation is lower than your offer will it affect your ability to buy?

Zither

jimjames wrote: »

I guess it depends how "similar" they are. If the valuation is lower than your offer will it affect your ability to buy?

Hiya,

Thanks for your reply.

No, I could still afford to buy (as my affordability is based on £130k) but ideally I'd prefer to pay 'the market value' (Head>heart). If it was a difference of £3k I wouldn't really consider it but £10K is a fairly substantial difference.

From looking on Rightmove they're fairly similar in structure and spec (one of the other sold properties is probably a little bit nicer tbh) so I was just wondering how likely it was that the bank's valuation would take these recently sold prices into account?

TY,

Z

Thrugelmir

Zither wrote: »

so I was just wondering how likely it was that the bank's valuation would take these recently sold prices into account?

TY,

Z

Surveyors don't go in blind. They'll be in contact with EA's and be aware of property selling prices in the locality.

Number75

Might go in your favour if bank do value it at £120K

You: bank has valued at £120K, because of comparable sales, so I need to reduce my offer to get the mortgage

Seller: oh no, all buyers* will have same issue - OK, we'll accept less

*obviously not all will

Are you actually paying over the odds? Do you mind if you are?

glentoran99

Zither wrote: »

Hiya,

Thanks for your reply.

No, I could still afford to buy (as my affordability is based on £130k) but ideally I'd prefer to pay 'the market value' (Head>heart). If it was a difference of £3k I wouldn't really consider it but £10K is a fairly substantial difference.

From looking on Rightmove they're fairly similar in structure and spec (one of the other sold properties is probably a little bit nicer tbh) so I was just wondering how likely it was that the bank's valuation would take these recently sold prices into account?

TY,

Z

Could you, as the bank would be willing to lend you less?

Zither

Thrugelmir wrote: »

Surveyors don't go in blind. They'll be in contact with EA's and be aware of property selling prices in the locality.

Thanks! I wasn't sure about how surveyors assess local similar prices. Do they spend a little time looking on the Land Registry site, old Rightmove listings etc, speak to EAs? Or is it just a v quick 5 min desk-based exercise? Is there a general toolkit/methodology that Surveyors use for valuations?

Zither

Number75 wrote: »

Might go in your favour if bank do value it at £120K

You: bank has valued at £120K, because of comparable sales, so I need to reduce my offer to get the mortgage

Seller: oh no, all buyers* will have same issue - OK, we'll accept less

*obviously not all will

Are you actually paying over the odds? Do you mind if you are?

Thanks! It's a lovely house but I do wonder if I'm paying a little over the odds. I totally appreciate that no two houses are the same and it's hard to compare exact values - every house/situation different. but at 10k difference I'd be keen that the surveyor at least recognises that there's a difference and this is reflected in the banks valuation. I suppose it again comes down to how well the surveyor does his job? Does downvaluation happen a lot in the circumstances?

Zither

glentoran99 wrote: »

Could you, as the bank would be willing to lend you less?

If the seller was prepared to discuss their asking price 🙂. Perhaps not if they aren't prepared to negotiate.

Lambpie

A surveyor has to use the best 3 or 4 recent comparables of similar houses sold recently in both his reasoning for the valuation and his notes. Often tgey use rightmove tools..He will rely on these if your bank take him to court for loads and valuer take this very seriously...if they value it at 120000 and you can't borrow more due to being st the top of an LTV band either you have to pay the difference if you want the house or typically you ask the those selling to reduce it by 10k (or split it between you) . Many people like houses being down valued for thst reason...if it is worth 120 its worth 120....even if they put it back on the market it is likely to still be valued at 120 as all surveyors follow the same process and it may well be valued again by the same surveyor? The only chase those selling have got of getting 130k if it is worth 120k is if the buyer has cash to fund the difference and a low LTV

You can appeal the valuation if it is downvalued and you can send in your own comparables to prove it is worth £130k but this is not ofen successful.

You can also pay for a automatic valuation through hometrack or rightmove that will value it using similar comparables. Not sure if cost but it might save you solicitors or other fees

Zither

Lambpie wrote: »

A surveyor has to use the best 3 or 4 recent comparables of similar houses sold recently in both his reasoning for the valuation and his notes. Often tgey use rightmove tools..He will rely on these if your bank take him to court for loads and valuer take this very seriously...if they value it at 120000 and you can't borrow more due to being st the top of an LTV band either you have to pay the difference if you want the house or typically you ask the those selling to reduce it by 10k (or split it between you) . Many people like houses being down valued for thst reason...if it is worth 120 its worth 120....even if they put it back on the market it is likely to still be valued at 120 as all surveyors follow the same process and it may well be valued again by the same surveyor? The only chase those selling have got of getting 130k if it is worth 120k is if the buyer has cash to fund the difference and a low LTV

You can appeal the valuation if it is downvalued and you can send in your own comparables to prove it is worth £130k but this is not ofen successful.

You can also pay for a automatic valuation through hometrack or rightmove that will value it using similar comparables. Not sure if cost but it might save you solicitors or other fees

Hi Lambpie,

Thanks, that's really helpful. I kind of hope the surveyor doesn't use Rightmove tools as Rightmove last updated it's sales data on the street in March. I only noticed the other sold properties on nethouseprices!

I'd be willing to negotiate and would hope that the vendor is willing to do the same. I've no problem paying a little bit more out of my own pocket - as long as the price is reflective of the area generally - and I think it's now £3-5k over-valued compared to other properties locally so hope this is acknowledged by the surveyor.

Thanks!