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Surveyor might value house less than developer?
buel10
Posts: 470 Forumite
Hello.
We are in the process of buying new build property. Next week the surveyor is due out to value it. The house was originally priced at £239,950 and in order for us to be willing to purchase it, we needed to make some changes at a total cost of £4,050 and our developer allowed us to incorporate that in to our total purchase price of £244,000.
Changes include dining room and kitchen to be open plan, addition of small breakfast bar, laminate flooring throughout downstairs, upgrade to shaker-style kitchen, addition of utility room (but using existing square footage of house/part of garage), widening of driveway for two vehicles.
Our concern is that the property may be valued less than the £244,000 and we want to know whether we will be able to see the reasons for this, should it happen. For example, would we know if the house value was less because of:
We are in the process of buying new build property. Next week the surveyor is due out to value it. The house was originally priced at £239,950 and in order for us to be willing to purchase it, we needed to make some changes at a total cost of £4,050 and our developer allowed us to incorporate that in to our total purchase price of £244,000.
Changes include dining room and kitchen to be open plan, addition of small breakfast bar, laminate flooring throughout downstairs, upgrade to shaker-style kitchen, addition of utility room (but using existing square footage of house/part of garage), widening of driveway for two vehicles.
Our concern is that the property may be valued less than the £244,000 and we want to know whether we will be able to see the reasons for this, should it happen. For example, would we know if the house value was less because of:
- Mortgage company not feeling the changes equate to £4,050
- House wasn't originally worth £239,950 in their opinion
- House was worth £239,950 but now isn't due to Covid-related market fluctuations
0
Comments
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I wouldn't expect the "extras" to add much to the market value - onward buyers aren't going to pay extra for a second-hand kitchen fitted out with your preferences, or for a utility room which hasn't actually added to the floorspace.
The surveyor will tell you what it's worth now, not what it might have been worth without COVID being a factor. Primarily it's going to be based on prices achieved by comparable properties.1 -
What's your mortgage LtV?0
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Laminated flooring and a breakfast bar will not increase the value of a property, widening of driveway might.2
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If you're buying for a suspiciously round 239950 (+ extras), sounds like you haven't negotiated at all... If so, I'd be prepared for a downvaluation. But we'll see. If they do, it might be in your favour, as it's a good negotiating tool (not that you would necessarily be happy about it on its own merits).
If you have the cash, you could potentially structure the deal so that you pay the lower number for the property and buy the extras as a customer of their building firm, not as part of the property. I guess your solicitor can discuss the +/- of such an approach, but it would help if there is a valuation gap caused by the improvements alone.1 -
Happened to me 45 years ago. I remember it as if it were yesterday.Away camping in Wales when I got the solicitor's phone call to say surveyors value was less than the buying price. Fully stretched and no wriggle room, plus a queue of other interested purchasers meant I was up the swanny good and proper and £200 out of pocket for fees etc! Never made that mistake again.The relevance to your situation is that in addition to all the other excellent advice you have received, at the end of the day it boils down to how badly the developer wants to sell the house to you.1
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How could you get a phone call 45 years ago while camping in Wales? Mobiles were not in use in the late 70's and tents didn't come with landlines?0
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I knew someone would pick up on that comment!!deannatrois said:How could you get a phone call 45 years ago while camping in Wales? Mobiles were not in use in the late 70's and tents didn't come with landlines?
Do you imagine that anyone would go on holiday camping, with a house purchase in the offing without first of all setting up a means of landline communication?
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Surely the question should be do developers ever value their speculative jewels at more than any level headed, accredited and trained, surveyor would?3
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