Undervaluation help and advice please?

kelseyjohn3

Hi Guys,

FTBs here hoping for some advice.

Me and my partner have had our offer accepted on below property, for 320k - valuation via nationwide has come in at 312k (we cannot afford extra 8k and dont think the seller will budge, already had some back and forth on initial negotiations.

Gahhh - not allowed to post links, buts its 52 Boundary Drive, CM131RQ

Looking at sold prices for the street but nothing has been sold in quite a while (nothing similar)

The last house sold on the road was a 2 bed, driveway, end of terrace, in better condition (modern, newer) than ours, for 350k. Ours is a 3 bed, mid terrace, needs major modernisation, and has no driveway nor scope to fit one, would this be enough to knock 30k off the value?

Another mid terrace, 3 bed, very old fashioned, no drive (but scope to fit one) with a slightly bigger garden, sold for 335k in 2018, I have read that a drive could add 5 - 10% value to a house, but this still wouldn't equate to a valuation on ours for 312?

Anyway - long post, thank you if you made it all the way through! Just waiting for the final valuation report which should be with me tomorrow, the estate agents are aware of the valuation and pulling some stats for us.... nothing is easy

getmore4less

Your own sample is very small how did you get to £320k?

The sellers EA will find......

kelseyjohn3

Hi Getmore4less,

Sorry for my naivety - but I dont seem to understand, my own sample? What are you referring too?

Kelsey.

[Deleted User]

There will be almost zero percent chance that the lenders surveyor will change their opinion. Everyone is wasting their time to try get it to happen.

If you are still wanting to buy the property and still wanting to do it at £320k you will need to look for a new lender. Nationwide use Countrywide Surveyors i think so you will need to find a lender that doesn't use them.

kelseyjohn3

Thanks JMA

Yes - I thought as much after reading numerous threads on this matter!

Our Broker did say that the valuation is 'subject to change as the file is still being 'reviewed'? - I should know by tomorrow, seems odd to me - doubt they will be changing their minds so soon?

getmore4less

kelseyjohn3 wrote: »

Hi Getmore4less,

Sorry for my naivety - but I dont seem to understand, my own sample? What are you referring too?

Kelsey.

Your sample in the first post has 2 houses

How many did you use to establish a value for the place before you made an offer on it.?

10,20.....

kelseyjohn3

I see! Sorry

There is around 15 on right move with land registry prices for the same street, ours is quite individual though as it’s three houses which are set back from the rest of the street, with no driveways, and the road itself is around a 30 second walk away (no problem for us but may be for some)

Also compared similar terraced houses in the area of Brentwood, around 10 online, viewed around 3 in person in the area.

They had initially dropped the price from 350, down to 335 down to guide price of 325-335

getmore4less

I have time, so will do a more like this.

Numbers are for sale/SSTC

this one?

https://www.rightmove.co.uk/property-for-sale/property-71991220.html


First step what are people buying within a mile

price.....2b....3b...4b+
0-300 09/00 01/01
0-325 09/01 02/04
0-350 10/04 09/08
0-375 13/05 11/13
0-400 17/05 12/18 00/01
0-max 23/11 32/39 49/31

Right at the bottom of the 3 bed market no competition in the 4 bed.

I would have a closer look at the 8 SSTC upto £350k

onto the sell through prices

1mile 1year price assending


if we start with the 4bed £300k

£300k sold £385 asking
3beds
£300k sold
£310 sold
£310 sold


If you have been watching the market you may have the asking prices for those in your records.


Based on his data alone the valuation does look at the low end of where stuff has been selling and people are making offers.

Keep watching the follow through prices but use the data to counter any EA data, 3bed places were selling under £320.
price....3b
0-300 4/4
0-325 7/9
Gives a few more to compare with.

Also adds more on the sold through under £320k.

Depending how these properties sold/SSTC compare you may have enough to get price reduced.

You could also look at the time on market to see what is sticking which is an indicator of overpriced as there are enough buyers out there for the level of stock on offer.

kelseyjohn3

Thank you Getmore, that is super helpful.

Yes - link for the property is correct, think what sold is to us is the 100ft garden, quiet area, links to station to get into London, but we need to remember the fact that it has not been updated since 2002, needs rewiring etc.

Maybe the surveyor is being slightly more cautious due to our smallish deposit of 10%... or maybe not?

I will keep you posted of the outcome, whatever that may be!

getmore4less

Forgot to add

Those 2bed numbers are quite unusual from the samples I have done normally you get a standard pattern that sits under the 3 beds.
cheaper selling and then nothing as you can get a 3bed
might be the mix of properties and the flats are sticking but houses are selling.
Or people that go for 2beds are buying elsewhere

Anyway

Looking at that property.

Where is the parking?
I can't see any anywhere

who owns the land to the south of the walk way to the properties

is. the wooded area part of the old rectory?

handy link into the planning map

kelseyjohn3

Parking is actually on Boundary Drive (on street parking avoiding dipped drives) or we could park up Springfield ave if needed, no parking restrictions on the surrounding roads. Would just mean a 20/30 second walk to the house, have had no problems parking the few times we have been there.

Unsure who owns that piece of land and EA did not know either, I think it may be maintained by the council, reg wooded area, I think that is separate from the old rectory, google maps shows a cricket and football club in there.