surveyor undervalued our home

Crashy_Time

striker44 wrote: »

thanks for all your responses - looks as if I have no avenues to go down - will have to make decision based on this valuation of 230. Even though everyone I have shown our details and the comparative details agrees with me that our home is worth far more than 230.

Why not find a cash buyer that agrees with you then in that case?

Susan20013

I work in the office of a valuer who, ironically, refuses to do valuations for mortgage or lending purposes because of this exact scenario. Too many parties willing to dispute a valuation.

The valuer has a duty to be completely impartial. The only concern of the mortgage provider is that the sale of the property will cover the mortgage if the purchaser defaults.

Many valuations are done "desktop" because an inspection is not often necessary. The actually decor of a property has less impact on the value of a property that most people think, particular as decor is very subjective. For example, whilst one purchaser may love the pricey whirlpool jacuzzi in the bathroom, another will see it as a liability to be remove. It would therefore have minimal impact on the actual valuation.

I am sorry, but there is not much you can do. Even if you commission your own valuation, if your purchaser cannot get the mortgage he needs, at the price he has offered, then the sale will fall through. The brutal reality is that you lower your asking price to keep this sale active, or you put your property back on the market.

Crashy_Time

Good advice......Happy Christmas and all the best for the New Year to everyone on the forum!

Skiddaw1

And to you Crashy

Smodlet

Susan20013 wrote: »

I work in the office of a valuer who, ironically, refuses to do valuations for mortgage or lending purposes because of this exact scenario.

Please forgive my ignorance, Susan20013 but, if your valuer employer does not do valuations for mortgage or lending purposes, what does he/she do valuations for?

daveyjp

Smodlet wrote: »

Please forgive my ignorance, Susan20013 but, if your valuer employer does not do valuations for mortgage or lending purposes, what does he/she do valuations for?

Probate, asset value, rebuild value, business value, rental value, capital value.

chucknorris

striker44 wrote: »

Hi,

Any advice appreciated - home valued by local agents 250 - accepted 242

Surveyor of national company spent 10 mins walking through our 4 bed 2000 square ft immaculate home. He lives 25 miles away. valued at 230, said by comparing other similar properties nearby.

With the help of estate agent compiled comparison list of nearby sold properties in price range 240 - 260. Our home stands out as being really undervalued at 230 compared to the 6 listed properties.

Sent letter to national company with documentary evidence suggesting their agent had perhaps made a mistake in his valuation of our home.

Short reply - as you are not our client we are not able to discuss this matter with you.

As above any advice to what I can do next to complain about what I and others believe is a wrong valuation and to rectify the mistake this surveyor made will be appreciated. Many thanks in anticipation of any help forthcoming.

Regards

Dave

You can't win, there is no way that they would admit making an error. The last investment property that we bought, the surveyor under valued the rental valuation. It was valued ridiculously low at £1,000/month, I knew that it was easily £1,200/month. The problem was that the lender wouldn't lend as much, and we had to borrow £68k less, and it was a very low tracker mortgage rate of just 0.38% over the base rate (bear in mind that my investments were/are paying over 4% per annum). Luckily I happened to have the £68k shortfall in a savings account, and when I asked the lender if they would consider the £68k shortfall as a retention on the mortgage until the property was rented, they agreed. So when we let the property for £1,200/month the mortgage company released the additional £68k. But I was lucky, because I usually have my money invested, not just sitting in savings accounts.

I'm a chartered surveyor myself (but a quantity not building surveyor), so I know lots of other surveyors, and just like any other profession, there are quite a few incompetent ones out there.

Crashy_Time

chucknorris wrote: »

You can't win, there is no way that they would admit making an error. The last investment property that we bought, the surveyor under valued the rental valuation. It was valued ridiculously low at £1,000/month, I knew that it was easily £1,200/month. The problem was that the lender wouldn't lend as much, and we had to borrow £68k less, and it was a very low tracker mortgage rate of just 0.38% over the base rate (bear in mind that my investments were/are paying over 4% per annum). Luckily I happened to have the £68k shortfall in a savings account, and when I asked the lender if they would consider the £68k shortfall as a retention on the mortgage until the property was rented, they agreed. So when we let the property for £1,200/month the mortgage company released the additional £68k. But I was lucky, because I usually have my money invested, not just sitting in savings accounts.

I'm a chartered surveyor myself (but a quantity not building surveyor), so I know lots of other surveyors, and just like any other profession, there are quite a few incompetent ones out there.

"Undervaluing" a property in this economic climate is probably more prudent than incompetent IMO. Is 4% from property, or all your investments, it is not that great a return for the hassle of being a LL is it?

chucknorris

Crashy_Time wrote: »

"Undervaluing" a property in this economic climate is probably more prudent than incompetent IMO. Is 4% from property, or all your investments, it is not that great a return for the hassle of being a LL is it?

It wasn't in this market, let me assure you, it was definitely incompetent. He was 20% off the market (and that is on rental income, which is not as volatile as capital values). The house was easily worth £1,200/month, and we tend to rent slightly below the market market value, we don't 'sweat' our properties (what is left them).

I wasn't talking about my property returns (which are now a much smaller % of my overall income), I have much more individually invested in both equities and corporate bonds now, and furthermore I didn't say 4%, I said over 4%, and I consider that to be a very good return.

My current portfolio is:

40% equities
20% bonds
18% cash (soon to be invested, not in property, although A REIT is possible)
12% fixed pension
10% investment property

Crashy_Time

chucknorris wrote: »

It wasn't in this market, let me assure you, it was definitely incompetent. He was 20% off the market (and that is on rental income, which is not as volatile as capital values). The house was easily worth £1,200/month, and we tend to rent slightly below the market market value, we don't 'sweat' our properties (what is left them).

I wasn't talking about my property returns (which are now a much smaller % of my overall income), I have much more individually invested in both equities and corporate bonds now, and furthermore I didn't say 4%, I said over 4%, and I consider that to be a very good return.

My current portfolio is:

40% equities
20% bonds
18% cash (soon to be invested, not in property, although A REIT is possible)
12% fixed pension
10% investment property

My point was about this market as the OP is presumably selling in this the present market? What fund do you use for corporate bonds can I ask? Overall your portfolio looks pretty sensible IMO, although personally I like to keep more cash than I actually need (about a years living expenses) on hand in instant access accounts, maybe that is an investment weakness I don`t know, but I feel some cash is best kept out of the markets.