Down Valuation, but not on Homebuyers Report

Guerillatoker

I'm sure this one comes up a lot on this board. This is a repost from House Buyings, Renting and Selling because I had 3 figure views yet no replies.

Just had my mortgage valuation back: £90,000. Had my personal Homebuyer Report done last week with a seperate surveyor, they valued @ £100,000. My accepted offer was £96,000.

What do I do now? Any idea how can there be such a difference between 2 accredited professionals who should be operating from the same standard?


(My mortgage adviser is helping me but as I am impatient, it is late on a Friday and this purchase is very important to me so I'm seeking advice from the forum. All help appreciated!)

jonfed89

Similar boat buddy....similar boat.

Thrugelmir

Mortgage valuation is performed for the benefit of the lender not you. Lender needs to know that there's adequate security for the debt and that the property can be sold quickly if need be. Totally different to holding out for months for a price as a seller.

Guerillatoker

Thrugelmir wrote: »

Mortgage valuation is performed for the benefit of the lender not you. Lender needs to know that there's adequate security for the debt and that the property can be sold quickly if need be. Totally different to holding out for months for a price as a seller.

Does that really prompt a mortgage valuation to be lower than a similar valuation done by another surveyor? If yes, then its a yes, I'm not trying to argue the truth!

But I would have thought the Homebuyer Report surveyor would also be considering if I needed to sell the house in a rush too?

EDIT: I've done some further research and I am starting to understand the lenders position. Though the current market is sitting around ~£100k I think their estimate is closer to the reality. Hopefully I can use this to negotiate down, as I may have offered too much in my haste.

glock339

I've had several valuations done on the properties I've bought over the years & found they can vary a lot.

First house I bought it was valued quite bit lower than my accepted offer. I genuinely did not have any spare cash to make up the difference plus I didn't really want to paying more than it was worth so I said that's all my lender will give me & luckily as it had been on the market for years they seller accepted the lower amount. Obviously this will not always be the case & if you really want that particular property you may feel its worth paying a little more.

2nd property I bought I made several offers on what I thought it was genuinely worth but seller refused to accept the house was in as bad a state as I knew it was. Eventually to get the ball rolling I decided to put in an offer for higher than I thought it was worth knowing full well that the surveyor would value it at less. In the first valuation it actually came back as un-mortgageable! The second lender we tried their valuation also came back the same. Then finally on our last attempt the 3rd lenders valuation came back as mortgageable but much lower than the asking price & even a bit lower than my initial offers so it ended up saving me a good few quid

Thrugelmir

Guerillatoker wrote: »

Does that really prompt a mortgage valuation to be lower than a similar valuation done by another surveyor? If yes, then its a yes, I'm not trying to argue the truth!

A property is only worth what someone is willing to pay for it.

Lenders perspective = firesale, i.e. auction.
Buyer = Long term home (school catchment area, location etc).

Different mindset. As the buyer is using the lenders money.

TonyMMM

Quite a few of these posts recently which is just reflecting that prices are falling (slowly) in many areas at the moment. Valuers working for mortgage lenders have to take that into account....so they tend to go lower to be careful they aren't caught out if the lender has to repossess and sell quickly.