Buyers' mortgage company valuation 30% below asking price!

YorkshireJames

Thanks for all your responses.

There aren't any properties like ours that have sold in the last 3 months as ours is twice the size of the others on the street (it's two houses knocked together).

We were sent the valuation report, the lady came round to do the valuation, but there are several obvious mistakes - they've missed out a floor of the property and put the roof condition as average rather than good or excellent (we recently re-roofed the whole house and the roof is perfect). Allied Surveyors apparently.

It maybe the surveyor doesn't know the area (they are from another city), has just looked at zoopla and missed the second property on zoopla. Im in the process of updating Zoopla now to combine the two properties - does anyone know how long it takes update? Zoopla thinks we are undervaluing the house now I've put the data in!

Does anyone know how to update mouseprice?

Any recommendations on what else we should do?

Thanks again!

need_an_answer

Do you know what your buyers view on the report is?

Is it case that they too believe there are inconsistencies in the valuation or are they coming to you asking for a huge reduction?


Simply point out via your solicitor if necessary the inconsistencies and suggest that it is their problem to chase up rather than yours.

If you have details and receipts for the recent roof work presumably you are happy to share those with the purchaser to at least prove the roof is probably better than an "average" condition. It may help them appeal if you still want to continue with this set of purchasers.


From what you have said I would be reluctant to drop your price to their level and suggest that they appeal the report or you will have no alternative than to remarket the property.

Pixie5740

YorkshireJames wrote: »

Thanks for all your responses.

There aren't any properties like ours that have sold in the last 3 months as ours is twice the size of the others on the street (it's two houses knocked together).

We were sent the valuation report, the lady came round to do the valuation, but there are several obvious mistakes - they've missed out a floor of the property and put the roof condition as average rather than good or excellent (we recently re-roofed the whole house and the roof is perfect). Allied Surveyors apparently.

It maybe the surveyor doesn't know the area (they are from another city), has just looked at zoopla and missed the second property on zoopla. Im in the process of updating Zoopla now to combine the two properties - does anyone know how long it takes update? Zoopla thinks we are undervaluing the house now I've put the data in!

Does anyone know how to update mouseprice?

Any recommendations on what else we should do?

Thanks again!

I seriously doubt the surveyor used Zoopla's estimated valuations or even the sold prices on Zoopla. I would expect a surveyor to get the latest sold prices from the Land Registry.

ACG

I would personally be asking them to try a new lender.
We had one around 12 months ago where we applied to Nationwide I think, it came back £20k below the valuation. We then applied to Natwest and it came back on the money.

£20k represented about 10%.

If 2 surveyors come back and say the same thing then it is probably that the agent valued it incorrectly. But no harm trying a new lender.

wesleyad

getmore4less wrote: »

Plenty of buyers out there not doing research and think asking/less a bit is OK.

Over priced 15% leaves 15% under by valuer well withing normal ranges.

Really need the more like this and sold through price data to know where it sits.

I agree there will be some room in the numbers, but i could see why this could shock. 3 EA's all agree 300k (for example), which may line up with what OP was expecting (yes I know EAs go high to get custom). Then they get 2 offers at 290k. Then valuer says "nah 200k". I'd be thinking somethings gone wrong rather than normal valuation error margins

Thrugelmir

YorkshireJames wrote: »

(it's two houses knocked together).

How does the selling price compare to 2 separate houses in your street or locality. .

Crashy_Time

Able to post a link?

Okrib

Most valuation surveys by lenders are a joke. I used to have to prepare comparables for them, that was all they cared about. We had a lot of transactions though and a good database so it was pretty easy.

I would say there is an error here and absolutely worth getting an RICS report. The buyer will likely be spooked / using this to try and knock the price down a lot (assuming they don't walk away). Speak to your agent, they should be able to get to the bottom as to what has gone on.

I did have an odd one once though. £2.25m flat, small mortgage of £300k. Valuer came in and valued it at £2.245m. Vendor ultimately pulled out because the valuer wouldn't budge and the buyer refused to make up the £5k and a cash buyer came in and paid £2.3m.

The same valuer will then be using that sale in his comparables going forward. Makes no sense!

Crashy_Time

Pixie5740 wrote: »

I seriously doubt the surveyor used Zoopla's estimated valuations or even the sold prices on Zoopla. I would expect a surveyor to get the latest sold prices from the Land Registry.

You would think so wouldn`t you? But you never know, property valuation has been a make up a number game for so long that many of them couldn`t do a proper valuation to save their lives.

kingstreet

Zoopla, Rightmove etc source the sold prices they show from the Land Registry data.

Just don't use Zoopla valuation estimates.