Valuation less than offer

JSPENCER

Yep, yet another one if these threads, however having read most of the others think my situation us slightly different.

3 weeks into the buying process, and my prospective new house has been valued at £9k less than the asking price.

I understand I have 2 options, find the 9k or walk away, and yes how lucky am I that the valuer just saved me 9k?...

Or am I? The house next door (identical build opposite side) sold 5 weeks ago for 4k less than the asking price on the house I've offered for, however it needed a new kitchen and bathroom. Still sold at 5k more than my valuation

The house 3 doors down (identical build) has a small extension on the back and has just sold for 4k MORE than my asking price, which is 13k more than my valuation.

The bank were under the suspicion it was a typo by the valuer, with 2 numbers switched round which seemed to be a logical explanation, however they've just confirmed the valuer has stood by their number.

To top things off. The house I'm buying was valued with a different bank at the ASKING PRICE just 8 weeks ago, before the buyer pulled out last minute and allowed me to swoop in. (They pulled out due to financial issues on their side nothing to do with the property.)

So strange that 2 other valuation companies would value near identical houses at such different prices.

Has anyone else had this? I've been told I can't appeal but in reality I was just talking to a woman who sounded like she didn't really care, so waiting for a call back from my actual mortgage advisor at the bank to see if there is a solution

I know 'a house is only worth what someone is willing to pay for it' but to have such proof of similar prices on identical houses and being valued so low is super frustrating.

Replies welcome

Crashy_Time

The banks/valuers create the market, and they are now being cautious because the property bubble is running out of steam, and that is with the lowest interest rates in history! Any "outside shocks" that force UK PTB to raise interest rates will mean carnage for the UK property market. The comments on here http://www.bbc.co.uk/news/business-40117132 tell us that more and more of the public want much lower property prices, so beware what you buy and for how much!

Stally17

I had a similar experience and the estate agent worked with the valuation company to provide evidence on how much three other similar properties sold for. The mortgage then went through fine.

Crashy_Time

Stally17 wrote: »

I had a similar experience and the estate agent worked with the valuation company to provide evidence on how much three other similar properties sold for. The mortgage then went through fine.

Why couldn`t the valuation company work this out for themselves?

ellie27

You mention 2 houses, one that sol 5 weeks ago and another that only just sold more recently. How do you know what they sold for? Did you ask the sellers?

JSPENCER

ellie27 wrote: »

You mention 2 houses, one that sol 5 weeks ago and another that only just sold more recently. How do you know what they sold for? Did you ask the sellers?

The same estate agent sold both others, and they sent me the documentation showing me what they sold for through them.

The one next door already has the new owner in, as when I went for my second visit she was moving her stuff in!

The seller says the visit was very brief and all the new bits (boiler, windows, kitchen, bathroom, fascias and soffits) weren't looked at by the valuer, neither was one of the bedrooms even entered as a baby was asleep in there - no idea if they're meant to check all that to value it mind you..

JSPENCER

Also for what it's worth -


The one I've offered for - http://www.rightmove.co.uk/property-for-sale/property-47045358.html

This one has just sold for £158k http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=47585841&sale=51694674&country=england

This one sold for £150.5k - http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=17441524&sale=51694629&country=england

Can't find the actual listing on rightmove for the others. Pictures are accurate for the property that sold for £158k and are old pics for the one that sold for £150.5

toc25

Another option is to find another mortgage provider that will use a different valuer and hope they value it closer to what you are wanting to buy it for. It's a gamble though and more expense to think of.

We are waiting for the house we are buying to be valued and the house we are selling to be valued and I'm convinced both will be down valued by the valuers, It's very stressful.

toc25

The 2nd 2 links don't worknfor me by the way.

pretamang

I'd say you best bet is to find another lender and hope that they agree with your valuation. (I'm assuming the vendor won't drop their asking price?).

However you do run the risk of them using the same valuer and getting the same amount, or the new lender coming in even lower. Do you want to pay for another survey with the outcome being uncertain?

I was in your position last year, the gap was £75k between the two valuations. I appealed with evidence of similar recent sales, they stood by their original price (a waste of 5 days waiting, apparently a successful appeal is very rare).

We then tried a different lender, who valued it fully at the price we offered so it was all back on.

Pupnik

Is it possible that they might be taking your deposit into account? After all they only really need to know it is worth what they are lending you, not what you are paying - perhaps those other properties had larger deposits?