Down valuing advice please

gigibelle23

We put our house on the market in Jan. We had it valued by 2 estate agents as a 3 bed house between 140,000 and 150,000. It went on at 150,000. Less than 2 weeks later, we'd had 2 offers - one at full asking price one at 142,500. We accepted the full price offer. Their lender's surveyor came, did a quick 5 min check. We thought everything was fine and went ahead with our own purchase. About a month later we heard back that the surveyor had downvalued our house to 120,000. It was originally a 3 bed house but we turned a bedroom into a bathroom as the original bathroom was miniscule and that is now a box room with a toddler bed in it. Our buyers mortgage provider wouldn't lend any more and they couldn't make up the shortfall so we lost them. It went back on the market and 3 days later we'd had 2 more offers for 140 and 145. We accepted 145. Now the new buyers surveyor is due and I'm terrified it will happen again. Should we call Countrywide and tell them that it's really a 2 bed house? Will that make a difference? First time sellers so no experience of this.

Nile_E_Coyote

Telling them its a 2 bed wont positively affect the price though. Just wait and see what happens.

If they deem it a 2 bed then its going ti affect the value they report.

K_S

@gigibelle23 Just hold tight and see what happens. There may have been a few more comparable sales in the market in the intervening period so who knows what the new valuation comes back as. Good luck!

AdrianC

How small is this third bedroom? Floorplan or RM link?

If there's three rooms with beds in, then it's a three-bed house. But if one of them's SO tiny that an adult-size bed won't fit, then...

lookstraightahead

I would assume it will be valued like last time. But perhaps your new buyers will be able to pay the difference if they want the house.

pretamang

It might happen again it might not, best to wait and see.
When buying our house it was down-valued about 20% less than we'd offered. We applied again with a different bank who sent a different valuer and they valued it at our full offer price. This was a 2-bed terraced house in a street where all other houses (which are all the same size) had 3 or 4 bedrooms squeezed in.

Also it shouldn't take a month, did the buyer sit on this info whilst deciding what to do? Get your estate agent to follow it up this time as they should report on the value within a couple of days.

amandacat

My mortgage company's surveyor (valuation report only) down valued the house I am buying by 9k, which was about a 10% down valuation. I instructed my own home buyer's report with a RICS surveyor (not linked to the mortgage company) and he valued it at around the amount we are paying.  There is a lot of different in opinion so there is every chance the next surveyor might value it differently. 

Rachylou1981

gigibelle23 said:

We put our house on the market in Jan. We had it valued by 2 estate agents as a 3 bed house between 140,000 and 150,000. It went on at 150,000. Less than 2 weeks later, we'd had 2 offers - one at full asking price one at 142,500. We accepted the full price offer. Their lender's surveyor came, did a quick 5 min check. We thought everything was fine and went ahead with our own purchase. About a month later we heard back that the surveyor had downvalued our house to 120,000. It was originally a 3 bed house but we turned a bedroom into a bathroom as the original bathroom was miniscule and that is now a box room with a toddler bed in it. Our buyers mortgage provider wouldn't lend any more and they couldn't make up the shortfall so we lost them. It went back on the market and 3 days later we'd had 2 more offers for 140 and 145. We accepted 145. Now the new buyers surveyor is due and I'm terrified it will happen again. Should we call Countrywide and tell them that it's really a 2 bed house? Will that make a difference? First time sellers so no experience of this.

Have you had second valuation yet?
We are going through the same thing with a lender down value but we are the buyers & are wondering whether going through a different lender will have the same outcome. Our homebuyer report valuation was same as our offer which just has us really confused

kungfu_navs

Ask your EA for the comparable properties that sold in the last 3 months in a 1/4 mile radius as evidence of their (the EA) valuation, the surveyor should be asking local EA for this information separately, if it comes back as down valued then your should provide this to your sellers to pass on to their surveyors.  May not work but worth a shot.

Crashy_Time

Just accept the price and get the sale done IMO.