2nd valuation more than the 1st valuation

useitorloseit

Hi

Me and my partner are first time buyers. We had an offer accepted on a house a few weeks ago, which we offered £9000 over asking price for. We where told there where multiple offers and an offer that was higher than ours, however we had a better LTV, therefore our offer was accepted.

Once our offer was accepted, we continued with the mortgage application and a valuer was sent out. This valuation came back as £175000 (the property was on the market for 'offers over £175000'), although our offer accepted was £184000. Once I informed the estate agent the valuation was down, he suggested if we really liked the property, we should go with a new lender and get a different valuation, as there were 2 cash buyers who had offered more than £175000, 'therefore the vendor will probably go with them instead', if we where not prepared to pay the 9000 ourselves.

We were reluctant at first to go for a 2nd application, as we couldn't be sure that the 2nd valuation would be higher. However we did go for a new application with a new lender. The new valuation came back at the end of last week and the property was valued at £184000.

Now should I be concerned about anything here ? As one valuer has valued the property 9000 less than the other ? Or is this perfectly normal and happens often ?

Thanks in advance

PField

Perfectly normal. This is not a science. Different people have different opinions.

useitorloseit

PField wrote: »

Perfectly normal. This is not a science. Different people have different opinions.

Thank you, I just didn't think it would be that much of a difference, (I take it 9000 isn't actually 'that' much then)

Thanks for the reply

davidmcn

useitorloseit wrote: »

Thank you, I just didn't think it would be that much of a difference, (I take it 9000 isn't actually 'that' much then)

It's not much in the context of the numbers you're talking about. Split the difference and call it £179,500. That then means the two valuations are in a range of +/- 2.5%, which is well within normally acceptable margins of error.

useitorloseit

davidmcn wrote: »

It's not much in the context of the numbers you're talking about. Split the difference and call it £179,500. That then means the two valuations are in a range of +/- 2.5%, which is well within normally acceptable margins of error.

Yes I didn't think of it like that

Brighty

I guess one of the valuers needs his wet finger calibrating

Fiesto88

Currently in a similar situation. We've had the mortgage valuation come back fine, offer price matched. The valuation given on our independent homebuyers survey is £25,000 lower. I've clarified and this lower valuation is nothing to do with any work required to the property (apart from a £1000 recommended roof repair) but the surveyor just thinks the purchase price is too high based on comparable evidence.

I wasn't expecting this as you'd expect a more conservative valuation from a basic mortgage survey than from a surveyor who's had a more detailed look at the property. Digging deeper, his comparables all seem to be houses sold in the same street, some of them 12-18 months ago. He has, in fact, valued it lower than our vendor purchased for two years ago.

From what little I've gathered, the mortgage valuation would likely have been based on comparable sales within the last six months and within a quarter mile radius. I'm therefore trying to convince myself that this one is more likely to be accurate.

Not that it matters. Whether we're overpaying or not, it's significantly lower than our maximum budget and is giving us a lot more house for the money than we'd get if we went 200 yards up the road into a different postcode. That and we don't envisage moving ever again.