Private survey under valued by 15000

seanm89

We are currently in the middle of purchasing a house and just had the survey come back with a few issues but the biggest concern was its valuation came back 15000 under what we have currently agreed. We are in direct contact with the seller Albeit not on matey matey terms. I have also noticed recently a number of houses entering the market at a lot less than I would have thought and I wonder if this is tied in.

The surveyor listed the reason for the valuation was that it was inline with current rics guidelines and the uncertainties around covid. 

I have been told the end of the chain is dealing with relatives of the deceased and had been given an offer 5 days ago and have yet had no response, so I'm not feeling the stamp duty deadline either. 

So what would you do? 

KathysBoy

You were lucky to get a valuation. In my area, three of the four surveyors I rang said they had stopped doing valuations, because of the Covid uncertainties.

davidmcn

seanm89 said:

So what would you do? 

Have a think about how significant £15k is in relation to the price (you haven't told us what that is).

binao

It's been reported Multi property landlords are reducing risks by  selling property, then buying when prices go down.

You might save by selling now, rent, then buy later.

Good luck.

tom9980

binao said:

It's been reported Multi property landlords are reducing risks by  selling property, then buying when prices go down.

You might save by selling now, rent, then buy later.

Good luck.

I can't imagine any sensible landlord exiting and re-entering the market for less than a guaranteed 20% gain in prices because of capital gains tax and extra stamp duty are large costs to bear. Then there is the prospect of getting a property up to a lettable standards and the time/cost that entails. Anyone who can predict such a fall in property prices with the required certainty is likely to be a rich man or woman already.

Thrugelmir

What % is £15k in relation to the selling price. The amount needs context. 

mm1985

The same happened to us. Our property was undervalued by a lot more more than 15k and the surveyor gave the same reason. our mortgage provider valued the house fine and offered us a mortgage so we discounted the rics valuation as we plan for this to be our forever home. We also did our own research into the houses that had sold in the area we are buying and our purchase is in line with that. In fact the house across the road sold recently for 10k more than the one we are buying and has less land. 

AdrianC

That downvaluation is one person's deliberately conservative estimate of the value. You and the vendor shared a different opinion of the value.

The question is whether it affects your ability to afford it, because of affecting your lender's willingness to lend sufficient money.

csgohan4

binao said:

It's been reported Multi property landlords are reducing risks by  selling property, then buying when prices go down.

You might save by selling now, rent, then buy later.

Good luck.

Houses are not like shares where you sell high and buy low in a short period, the associated costs and time eats into that profit. 

rik111

Sounds like you have had a lucky escape. Up to you if you want to pay 15k over the odds in a declining market.

MEM62

binao said:

It's been reported Multi property landlords are reducing risks by  selling property, then buying when prices go down.

Errrr........No.  This isn't happening.