I have been told that the big house builders, surveying institutes and high street lenders

Prichard

often meet, particularly when deciding on pricing for large developments. Is this to discuss what houses will be priced at & check that everyone is on the same page?

It feels a little corrupt, to me... But perhaps it is just a way of greasing the wheels and prevents multiple houses falling through due to over-valuation in a short space of time (which would also presumably be bad PR).

Anyone heard of this before?

kingstreet

It has been normal for discussion of pricing of developments ahead of a build. Developers, lenders and surveyors will consult but the first valuation on a site usually sets the tone from then onwards as the time-lag can be lengthy.

Thrugelmir

Prichard wrote: »

It feels a little corrupt, to me... But perhaps it is just a way of greasing the wheels and prevents multiple houses falling through due to over-valuation in a short space of time (which would also presumably be bad PR).

A property is worth what somebody is prepared to pay for it. The caveat being that a mortgage lender needs to need ensure it's adequate security for the money advanced. As it's their money at risk not yours.

Prichard

kingstreet wrote: »

It has been normal for discussion of pricing of developments ahead of a build. Developers, lenders and surveyors will consult but the first valuation on a site usually sets the tone from then onwards as the time-lag can be lengthy.

Interesting, my valuation is tomorrow (via Halifax). The majority of Phase 1 of the development has been sold (less than 10% remain). However, our property is one of the largest there and I think only two of that style have sold so far. Hopefully it goes OK for the reasons you give!

Prichard

Thrugelmir wrote: »

A property is worth what somebody is prepared to pay for it. The caveat being that a mortgage lender needs to need ensure it's adequate security for the money advanced. As it's their money at risk not yours.

Oh I understand that, of course. Just wondering why there are so few (if any) downvaluations on a development that will ultimately have 1,400 homes via 3 separate builders.

Thrugelmir

Prichard wrote: »

Oh I understand that, of course. Just wondering why there are so few (if any) downvaluations on a development that will ultimately have 1,400 homes via 3 separate builders.

Smoke and mirrors. Incentives are often used to hide the true selling value. Part exchange being one. With both inflated buying and selling prices.