Mortgage valuation has under valued

RedFraggle

We paid over what I thought our house was worth despite the mortgage valuation being the sale price. We paid £330k and I believe it was worth £315k to £320k tops.
The layout was exactly what we needed for my autistic husband to use the 3rd reception room as a den for his punk vinyl collection without disturbing me or any neighbours so I happily paid a bit over the odds because for our requirements it was worth it. I still paid £15k under asking and £35k under the original asking price. The agent always overvalues our street.

ethank

You can always try a different mortgage provider - as long as they use a different valuation surveyor. This is why it is worth using a broker! They know who uses who!

System

The mortgage valuer has given you the perfect tool to negotiate down the price of this house to the official mortgage valuation. I am not sure why you are so reluctant to use its full power. If I was in your position, I would be very grateful.

kinger101

I'd at least counter-offer £255K. Their EA will likely pressure them to accept.

steampowered

It is difficult to value a property exactly. When we are talking about £250k vs £260k things become very suybective.

It is possible another surveyor could come along and value the house at £270k. Especially if there have not been a lot of similar sales the surveyor could look at.

The vendor coming down from £268k to £260k sounds like a fair bit of movement to me, so I'm not sure you would get much more.

As others have said, £10k is not a lot of money if you are intending to be in the property for a long time and it suits your requirements.

System

I suppose you also have to consider how long it takes you to earn £10,000 after tax. Most people here seem to be saying £10,000 is a pretty trivial sum of money, which I presume means you would be able to make it back with just a few extra months work or overtime.

Crashy_Time

Diocletian_II wrote: »

I suppose you also have to consider how long it takes you to earn £10,000 after tax. Most people here seem to be saying £10,000 is a pretty trivial sum of money, which I presume means you would be able to make it back with just a few extra months work or overtime.

On here when overpaying for houses 10-20k + seems to be "trivial", overpaying for anything else is considered not very Money Saving. Overpaying for property is likely to be the biggest mistake someone can make in this economic climate IMO, but if it is only 10k and you can handle losing money on the purchase go for it.

stayathomeandsave

The valuation by the lender was a valuation for financing purposes. The lender will normally value conservatively so they are better off at their end of the equation. I paid £430,500 for my home and the valuer did a drivepast and agreed that the property was worth that. I then spent £80,000 on the house doing it up and re-mortgaged to fund the work. This time the lender valued it at £520,000 (which allowed me to cover the cost of the work) but the 2 estate agents that have valued the property since have both said in the region of £590,000. In reality if we wanted to sell it would much more likely to be sold for circa £550,000 so it depends how you look at it!

Crashy_Time

stayathomeandsave wrote: »

The valuation by the lender was a valuation for financing purposes. The lender will normally value conservatively so they are better off at their end of the equation. I paid £430,500 for my home and the valuer did a drivepast and agreed that the property was worth that. I then spent £80,000 on the house doing it up and re-mortgaged to fund the work. This time the lender valued it at £520,000 (which allowed me to cover the cost of the work) but the 2 estate agents that have valued the property since have both said in the region of £590,000. In reality if we wanted to sell it would much more likely to be sold for circa £550,000 so it depends how you look at it!

It will sell for what someone is willing to pay in the market conditions that exist when you want/need to sell, property isn`t like money in the bank or a safe investment fund.

stayathomeandsave

Crashy_Time wrote: »

It will sell for what someone is willing to pay in the market conditions that exist when you want/need to sell, property isn`t like money in the bank or a safe investment fund.

Quite! You missed my point Crashy, I was showing that a 'valuation' can vary depending on a number of factors and asking on a forum such as this for advice about the value of a property often goes round in circles. My house isn't 'worth' a cracker unless someone else thinks it is.