Appeal Down-Valuation

Mo87

Dying here ...

So I have spent the last few hours driving round the area we are looking at. Been in to sales offices etc, all go the same line that they done drop the price of the properties but can help with incentives which isn't great

So the 3 comparable.

1. Exactly the same property 0.24 miles from my plot
Sold April 2017 £249,950
Valued 24/4/17 by Countrywide
Mortgage with Virgin
Only incentives; Paid stamp duty
Completing; October when the house is ready

2. Detached 3 bed property 2.2 miles away
Date of 1st sale; May 2013 £227,950
Sold again; May 2017 £257,950
Smaller property
+ Has a garage and conservatory which we don't but its the closest I can find

3. Struggling to find an alternative new property, of comparable spec/size and type. Others are predominantly detached

Sales manager who was present for the valuation said the chap only looked at the floor plans, didn't ask any questions, want to see the plot etc.

Thanks

amnblog

There are two main issues with challenging valuations.

1. Comparable need to be 'comparable' and very local. A different style of property is not comparable, nor is a property two miles away. Comparables are always difficult to find.

2. You are asking a Professional person to admit they were wrong. Something they would wish to avoid.

This is possibly a case where you are being asked to pay too much for the property.

Mo87

I have literally spent hours over the last day scouring the internet property sites, land register, driving around the area looking for sold signs/properties similar and nothing.
I would be keen to see what comparable properties he has based his valuation on, I assume he would have done this ?

I have emailed my broker explaining the issues I am having and she said she will speak to her Business Manager and see if we can arrange a 2nd valuation which we will pay for, if it comes back at the same price then fair enough but their is a possibility it could come back more.
Not asking said person to say they made a mistake just want to understand how he has arrived at that figure, given it is the 1st down valuation on the site and one valued only a few months ago at just under £250,000 so quite a big difference.

Thrugelmir

cjmillsnun wrote: »

Colleys know how much the property (the actual building) is worth, and that is what they are basing their price on.

More than likely have adopted a consistant approach as well. Having valued other properties on the development with varying degrees of incentives.

Mo87

Hopefully my broker will come back to me in the coming days with an update from Halifax.

That failing not sure what to do

Mo87

Appeal rejected ... Spoken to Halifax who have said they can instruct a 2nd valuation for an additional cost of £430.

Fiesto88

Mo87 wrote: »

Appeal rejected ... Spoken to Halifax who have said they can instruct a 2nd valuation for an additional cost of £430.

Have you clarified with them what their stance would be if the second valuation comes back higher? Valuations aren't an exact science and I'd find it difficult to believe a lender would take the risk of accepting one valuation figure if they had another report suggesting the value of the security was lower. Would the second valuation report just be an expensive means of trying to convince the first surveyor that he was wrong?

Mo87

My understanding is if the 2nd valuation was to come back higher, as it has been instructed by them via Colleys they would go with that figure.

Thrugelmir

Mo87 wrote: »

My understanding is if the 2nd valuation was to come back higher, as it has been instructed by them via Colleys they would go with that figure.

The new valuer is still going to follow the instructions of the lender, i.e. the criteria to be used in deriving a fair market value for the purposes of a mortgage advance.

Mo87

Second valuation booked in for the 5/9/17 with Colleys this time around. Hopefully they will see the value at the the revised selling price of £246,000.