Yet another house downvalued by countrywide surveyors

getmore4less

if the current lender values it higher stick with them.

£285k £265k what LTV are you struggling with

dunstonh

class2ldn wrote: »

No they didn't survey it but like I've said its in line with what other houses are selling for.
Sorry but 20k is a big difference

it is not a big difference. It is 7%. Anything upto 15% is typical.

You seem to have this problem understanding that estate agents selling properties are trying to get as high a price as possible. They add a margin on top of what they think it will go for to allow a reduction.

The valuer for lending purposes does not include that extra margin. It is looking at a pricing criteria that is typically worded at a realatively quick sale.

During a rising market, the lenders and valuers tend to be more generous. During a falling market or period of uncertain economic data, the valuers tend to be more cautious.

We are currently in a period when the ecnomic position is uncertain. House prices are falling in a number of areas or static in others (there are always exceptions). So, a difference of just 7% between estate agent price and valuer seems within normal tolerance.

House prices do not have a price ticket on them. There is an element of estimation and randomness. Someone down the road may have got lucky with a higher value sale but your similar property could be on the market for years at the same price. Different valuers may have different opinions. However, that is the nature of things.

davidmcn

class2ldn wrote: »

So how can 2 different lenders come up with a 20k difference?

Because valuation isn't an exact science.

Let's split the difference and assume the "real" value is £275k. In that case all the valuations are only 3.6% out. Which is within normally accepted margins of error for property valuations. In some areas the market can change that much during the period between offer and completion.

amnblog

Our OP is unfortunately not listening.

It's not about what next door sold for last week.

It's not about what Estate Agents are saying.

It's about the valuation policy that firms like Countrywide agree with Lenders like Nationwide.

Remortgage valuations tend on the conservative side.

If Countrywide were regularly undervaluing in comparison with their competitors, the Lenders would pick it up and question it. They don't want their security book undervalued any more than they want it over valued.

class2ldn

I think it's you that's not listening, are you struggling to read constant reviews where they have valued lower then everyone else.
The lenders probably know full well but it benefits them as it gives them more money
The issue isn't the extra payments, it's the question of whether the valuation could have any real impact in the future.
Noone seems to be able to answer the question and I don't give a monkies about whether you agree that they are undervaluing or not, reviews are there for a reason and I think they say it all.
I've been assured elsewhere that it won't make much difference in any real important way apart from bumping our payment up 5 quid a month so I'm happy with that.
You say it's not about what sold next door etc but there must be comparables as how would they come to that figure?
Funny how it generally seems to be 10,20,30k less then other properties

class2ldn

Crashy_Time wrote: »

When you say "work at the airport", what kind of jobs/wages do you mean?

Well not being funny but it's not hard to work out the sort of jobs at an airport especially 1 like Gatwick.
It's quite a broad spectrum for wages but it's from 17k anything upto what captains and the rest could earn.
Many of them people live in the surrounding areas and also it has very good transport links to London and the south coast. We have a 24 hour bus service to the airport at the end of our road. You only have to look at house prices over the last 20 years in Crawley to see how much it's jumped, ours alone is 215% between us buying and it being sold before that.
House prices here don't get knocked down considerably like other parts of the county might. We got 4k off, the house we put an offer in for before had a higher offer then listed.
It's been similar with friends in the area aswell.
Believe me noone would have an offer 20k under the list price accepted in Crawley, it's always in high demand and you'd be laughed at if you tried

kingstreet

One of our newbuild sites is in Crawley and we get many enquiries from Gatwick workers.

class2ldn

There's a lot of new developments in Crawley and areas out towards Horsham. Some new 2 bed houses on these developments are fetching crazy money

kingstreet

Ours is apartments and the money seems mental to me.

Saying which, we have other sites in Chertsey and Reading and that's even more mental when you come from the North West and live in Staffordshire.

class2ldn

This is why I don't think Halifax were wrong or the estate agents, if a valuation was 285 you wouldn't get a house in Crawley for more then 5k off and even that's pushing it. The growth in Crawley is massive
May be different for new builds I don't know.
One house sold last year for 275, it's now up for sale again at 325.
Can't go with Halifax as want a tracker as may be moving in a year, even less