Lenders Valuation

akimi

I'm not saying it has been down valued, I just want to know how things work in the event that it was.

I've seen comments along the lines of 'why would anyone pay more then it's valued at'

But is it not beyond the realms of imagination that a different valuer on a different day could value a property 10k higher? As an example we had four different valuations from four agents, so are lenders valuations an exact science? (we went with the second lowest valuation)

Like I said our property hasn't been down valued I'm just interested in finding out the process so I know the next steps to take in the event that it happens.

Crashy_Time

AdrianC wrote: »

Well, that's one of your more perceptively accurate insights.

"Most buyers want to pay less"

Get Alan Sugar on the phone, we've got the winner of the next series here.

Not so long ago buyers were actively trying to outbid each other, so what you said doesn`t really show much knowledge of buyer psychology IMO.

Davesnave

akimi wrote: »

But is it not beyond the realms of imagination that a different valuer on a different day could value a property 10k higher? As an example we had four different valuations from four agents, so are lenders valuations an exact science? (we went with the second lowest valuation.

Lenders' valuations are usually based on recent sales of similar property, so although it's not an exact science, it's likely to be more accurate an EA valuation, which can be influenced by the desire to get someone's business by flattering them/their house.

You probably won't be able to do anything about a lender's valuation if it's lower than the offer, so there's little point worrying about it. If it happens, you and the borrower may be able to work something out by trying to meet around the middle ground.

davidmcn

akimi wrote: »

But is it not beyond the realms of imagination that a different valuer on a different day could value a property 10k higher? As an example we had four different valuations from four agents, so are lenders valuations an exact science? (we went with the second lowest valuation)

Not an exact science, no - typical margin of error (for assessing whether a surveyor has been negligent) is at least +/- 5% - so in your example it's quite feasible for two people to value a property at £190k and £200k and both be "correct".

Crashy_Time

babyblade41 wrote: »

I like to do my own price setting and as I always use a friend who's the agent and lives a long way away from where I do it always makes sense.

Quite easy to work out roughly what similar have sold for in the area in a year and even the high street as opposed dubious on line companies over inflate which is quite often where transactions stall along the way.

This year is particularly hard as I don't think it's totally on the price unless dropping quite a considerable amount .

Brexit isn't the cause it's the uncertainty that's causing everyone a mass headache at the min .

If I needed a lender I would always be guided by the valuation they set out as even if the vendor won't accept a reduction invariably someone else would come along and the same outcome would happen again

Never overpay unless you are sure it really is going to be very long term .

So many people think this is the one and a couple of years later circumstances change and they find themselves not being able to sell for the amount hoped for.

If a property is not meant to be then something else turns out better and you've had a lucky escape

Good advice.