Survey undervalued first home by £15,000

numbercruncher8

Isn't there some paragraphs in the valuation report about why they have valued it as they did?
Your dad is wrong though, if they 'always' undervalued threads like yours would be commonplace. £15k in the context of the property price is pretty significant.

[Deleted User]

numbercruncher8 said:

Isn't there some paragraphs in the valuation report about why they have valued it as they did?
Your dad is wrong though, if they 'always' undervalued threads like yours would be commonplace. £15k in the context of the property price is pretty significant.

Not anything specific to my property. There’s some details on the way the value properties such as current market, similar houses sold, any repairs needed etc. 

davidmcn

I think you need to consider the evidence which has led you to believe £89k is the correct price, versus whatever the surveyor has based their figure on. Perfectly legitimate to try renegotiating on the basis that you've had a valuation falling well short of the price.

numbercruncher8

For me, the discrepancy seems to big to ignore.
How do you know that you 'just' won? If its the EA telling you that I'd take it with a pinch of salt. 
It is quite likely that the cash buyer may have a similar problem if they did a survey as well. In fact I think they'd be more likely to re-negotiate, having less of an attachment to things.

Crashy_Time

comeandgo said:

Do you have £15,000 over and above your deposit as your mortgage will be based on the lower valuation.

If you do keep hold of it, don`t bail someone out of their mortgage debt mistake.

Crashy_Time

Alicefisk1235 said:

The problem with going back to renegotiate the price is I was up against a cash buyer when making my offers and only just won. 

I doubt they will come down anywhere near the survey valuation 

Why would a cash buyer want to pay 15k more than they need to?

[Deleted User]

numbercruncher8 said:

For me, the discrepancy seems to big to ignore.
How do you know that you 'just' won? If its the EA telling you that I'd take it with a pinch of salt. 
It is quite likely that the cash buyer may have a similar problem if they did a survey as well. In fact I think they'd be more likely to re-negotiate, having less of an attachment to things.

Very true, I don’t know how close it was really. 

I agree that it’s undervalued by a lot more than I was expecting and I’m struggling to see why my dad thinks it fine. 

I understand that my mortgage lender thinks it’s valued correctly however as mentioned above this survey was a lot more detailed. They would be valuing it this much for no reason surely? 

[Deleted User]

Crashy_Time said:

comeandgo said:

Do you have £15,000 over and above your deposit as your mortgage will be based on the lower valuation.

If you do keep hold of it, don`t bail someone out of their mortgage debt mistake.

I don’t need to pay £15,000 more. My mortgage has been accepted 

Crashy_Time

Alicefisk1235 said:

Crashy_Time said:

comeandgo said:

Do you have £15,000 over and above your deposit as your mortgage will be based on the lower valuation.

If you do keep hold of it, don`t bail someone out of their mortgage debt mistake.

I don’t need to pay £15,000 more. My mortgage has been accepted 

So you are either straight into 15k negative equity, or your lender thinks this other survey is wrong, or your lender is going to allow you to overpay, or something else...or am I just confused?

numbercruncher8

Alicefisk1235 said:

Very true, I don’t know how close it was really. 

I agree that it’s undervalued by a lot more than I was expecting and I’m struggling to see why my dad thinks it fine. 

I understand that my mortgage lender thinks it’s valued correctly however as mentioned above this survey was a lot more detailed. They would be valuing it this much for no reason surely? 

Actually I don't think that is the case that they think its valued correctly, more that they are happy to lend on it at the current terms because the security is deemed sufficient for what they are owed. A subtle difference.
If your LTV was higher they may well have had a different opinion.