Survey undervalued first home by £15,000

Jumblebumble

tedlewis355 said:

Alicefisk1235 said:

Crashy_Time said:

Alicefisk1235 said:

I’m starting to think the same! 

But where do I go from here? I really don’t want to miss out on the property but also don’t want to pay over the odds and not be able to sell it for what I need 

You probably can`t have all three unfortunately, unless the seller will drop their price?

No idea if they will especially as low as this valuation 

Valuations will be lower and lower next year 

How do you know?

MovingForwards

How long had you planned to be in the property for?

gerkin

The main problem in this country is the lack of houses in the market suiting someone's budget and this in turn means that it takes ages to find that right house. If after finding 'the' house, you end up with things like survey throwing up wobbles, it is not an easy decision to back out of sale, reflecting the OP dilemma right now. If the OP can walk out of this deal and walk straight in to another deal, he would not even have bothered coming in here.

Personally, this house purchase is a huge gamble and might well end in tears. 15K off a 300K purchase I can understand, but this is something else. I strongly suspect there was no cash buyer, I can bet on it.

perbinder

gerkin said:

The main problem in this couintry is the lack of houses in the market suiting someone's budget and this in turn means that it takes ages to find that right house. If after finding 'the' house, you end up with things like survey throwing up wobbles, it is not an easy decision to back out of sale, reflecting the OP dilemma right now. If the OP can walk out of this deal and walk straight in to another deal, he would not even have bothered coming in here.

Personally, this house purchase is a huge gamble and might well end in tears. 15K off a 300K purchase I can understand, but this is something else. I strongly suspect there was no cash buyer, I can bet on it.

There may be cash buyers but I would be shocked if they don’t do their own survey and have a similar valuation. 

Crashy_Time

Exactly, the cash buyer will be dropping their offer pretty soon no doubt.

newsgroupmonkey_

Just had a chat with the Missus (she's in the game). Firstly, your Homebuyers report should be in a certain format - to be undervalued that much, there would be at least one red condition rating on it. Could be something like electrics, gas or whatever.

Also, to put into context, a surveyor is expected to do 6 mortgage vals a day or 2 homebuyers, so a mortgage valuation is likely to be a "lovely, thank you" type looky round. A homebuyers, the surveyor will open the electric cupboard (and see whatever horrors lie beneath). They'll possibly inspect cupboards and so on.

However.......... your Dad is also partly right. If you've instructed a local independent surveyor, they will value down. They can't take the risk. Whereas one of the "big four" are more likely to take the risk that the place is worth what you're paying for it. Nearly 20% difference is huge though.

I know someone else asked, but what does the homebuyers report actually say?

Thrugelmir

newsgroupmonkey_ said:

Also, to put into context, a surveyor is expected to do 6 mortgage vals a day 

As a consequence they will have a good feel for the local market. Have contacts in all the major EA's who they can ring up and find out exactly what's just been sold and how much for. For somebody performing the task day in day out trends will be perceptible. 

newsgroupmonkey_

Thrugelmir said:

newsgroupmonkey_ said:

Also, to put into context, a surveyor is expected to do 6 mortgage vals a day 

As a consequence they will have a good feel for the local market. Have contacts in all the major EA's who they can ring up and find out exactly what's just been sold and how much for. For somebody performing the task day in day out trends will be perceptible. 

Possibly, but even the big companies use a local surveyor who knows the market very well. In addition, they have to use comparable evidence either way.

Crashy_Time

Thrugelmir said:

newsgroupmonkey_ said:

Also, to put into context, a surveyor is expected to do 6 mortgage vals a day 

As a consequence they will have a good feel for the local market. Have contacts in all the major EA's who they can ring up and find out exactly what's just been sold and how much for. For somebody performing the task day in day out trends will be perceptible. 

True, the average person can also get a much better feel for things via the internet than they once could?

FTB_Help

Alicefisk1235 said:

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? 

From my understanding your lender is happy to lend you £74k (you have £15k deposit?) If this is the case then maybe your lender valued the property around £74k too which is why they were happy to lend you £74k, i think this is how lenders valuation work, i.e they will lend you the amount they think its worth (valued at £74k so they lend you £74k), i might be wrong, so anyone with more info please correct me. Do you know how much your lender valued the property at?