Survey valuations

Axled

Hi,

We are currently in the process of buying/selling and the purchasers of our place had a full survey on the house. This identified some concerns as expected for an older property but the valuation was put much lower than the offered price and so price is being asked to be negotiated. We asked to see the survey which they allowed, but there was no valuation in the document which we have always had when we have had surveys in the past.

Sorry for the long post but does anyone know if not having an estimated value put in a Countrywide survey is standard or has it been omitted? Just seems a bit odd.

Thanks for any pointers.

Albala

The buyers may not have asked for a valuation. A building survey (if that's what you mean by a 'full survey') doesn't necessarily include one, you usually pay extra for a valuation. And the sellers may have had that done on a separate sheet, in which case, it's up to them whether they show you or not. You have no right to see it, of course, just as you have no right to see the survey, unless the surveyor and your buyers choose to allow you to, as yours appear generously to have done.

For our recent building survey, our surveyor's T&Cs don't allow us to share the survey with anyone except our legal advisors. Nor would I have done so- as I paid nearly a grand for it; if a seller wants a survey, or a valuation, they ought to pay for one. It's reasonable to ask for quotations for work that needs doing if a reduction is being negotiated for it, that's a different matter.


Also, be careful what you ask for, it may not be in your interests to poke that particular crocodile. Our valuation was over 20 thousand less than our offer. We haven't mentioned this to the seller, as it isn't their business or their problem, it's ours. The seller has not asked if we had a valuation or what it was, so that sleeping dog is being allowed to keep on snoring. If demanding it became a bone of contention in a renegotiation, it would be more help for us than for them.


In the end, a house is worth what the buyer will pay for it- a valuation is of no real significance to a seller, only to a lender. But if you want an independent valuation from an RICS surveyor, there is nothing stopping you paying for one. You're not entitled to a free one that someone else has paid for.

Axled

Thank you for your response. Yes, the building survey was offered to be shown to us as they were wanting to renegotiate on price due to the surveyors valuation. We did not expect to see this. My question was only if the valuation from this survey is usually on the report, we have always had this as part of our buildings surveys and so I found it strange this was not on this report.

I’m not looking to poke crocodiles, dogs or any other large toothed animal with regards to the sale. Perhaps my point wasn’t clear enough as I was just interested with this company. Thankfully I understand the use of a valuation and I certainly wasn’t looking for a free one. Suppose we are lucky that communication with the buyers has been good so far.

Finchy2018

Building surveys look at the condition of the property not the value of it. When I worked in surveying you'd have to pay an extra fee to have the value included as it's not part of the type of survey /extra work needed.

onwards&upwards

If a buyer is wanting to renegotiate based on the fact that the valuation has come in lower than expected, I thinks it’s perfectly reasonable for them to show some evidence of this, ev3n if it’s just between solicitors. Why should the seller just take their word for it?

Albala

onwards&upwards wrote: »

If a buyer is wanting to renegotiate based on the fact that the valuation has come in lower than expected, I thinks it’s perfectly reasonable for them to show some evidence of this, ev3n if it’s just between solicitors. Why should the seller just take their word for it?

If they don't trust the buyer, all they have to do is commission their own valuation and use that to negotiate with. Buyers may choose to provide the one they paid for, but there is no reason why they ought to. Buyers have to take their sellers' word for an awful lot of things and there is often no way for them to check those matters...... Without some degree of trust both ways, houses could never be bought and sold.

letitbe90

It’s up to you, some people will find it difficult to mortgage or have to stump up extra deposit if the valuation is lower than asking price - but it is your call whether to accept.

I’d ask for the valuation report though before engaging in any potential negotiations.

DrSpendLittle

If it concerns you that much, perhaps pay for your own independent RICS valuation survey of your property to get a second opinion. Then, if there is a significant difference in the offer price and the valuation, and you are willing to negotiate on this, you have your own 'evidence' from which to start the negotiation and perhaps challenge the evidence being presented to you by your buyers.

If you do this and then decide to reduce the price, you could agree that the cost of your own RICS valuation survey is deducted off this reduction, thereby passing the cost onto your buyer.

Good luck!