RICS Homebuyer Survey Valuation Query

bayza92

Good afternoon all!

Currently in the process of purchasing our first family home and I'm pretty sure we've managed to agree a great price on the property at £300k. 

Now, this is the second property we have had valued this year, the first one the vendors pulled out, but it was a similar situation and we had agreed to pay £312k, which was again a great price.

I'd say that both these properties are worth at least £20k more than we are/were paying, but both the valuations came in on the money. Is this just how all lender valuations work? Is there a benefit to them in the property being undervalued at this point? For reference a house 1 door down from the one we are buying now, has just sold at an asking price of £360k and the only difference is it's had about £20k spent on it.

Would really appreciate people's views and opinions on this.

Cheers!

amandacat

They never value it at any higher than you are paying so if you offered 300k but they felt it was worth 320k they’d still put down 300k.

Fiesto88

amandacat said:

They never value it at any higher than you are paying so if you offered 300k but they felt it was worth 320k they’d still put down 300k.

This isn’t true actually. I work for a mortgage lender and up-valuations aren’t commonplace, but they’re not rare either. We’ll typically see between 10 and 20 of them a week for purchase applications - and those are only the ones where the difference in valuation makes a better rate available to the customer. The rest are just automatically accepted.