Worried about valuation

Mon2907

We’re in the process of selling our property and had a lenders valuation today (sent on behalf of our buyers bank). She asked a few questions about how we arrived at the price - we had two EA’s value the property, one at 170,000 another at 165,000, we put it on for 160 and sold for that price.
I’m nervous because before she left she said the house would be hard to value as there are comparables; she’s right, its something we looked in to before selling and the EA’s also made this comment. Neighbouring villages are more ‘sought after’ so the prices for a similar property there range from 180-220 but my concern is the area isn’t comparable.
Now I’m worried about what they’ll use to arrive at their decision, and lack of comparables often result more often in down valuations. Anyone been in a similar situation? 

Mon2907

Sorry I meant to say there are not any comparables! 

cheeky-peach

I guess all you can do is wait and see what they say? I know that's not helpful at all but ultimately, you won't be able to do anything about the final decision.

Mon2907

cheeky-peach said:

I guess all you can do is wait and see what they say? I know that's not helpful at all but ultimately, you won't be able to do anything about the final decision.

True, it’s so stressful! 

Ramouth

How long was your house on the market for before you found a buyer?  When we sold our place there was an 23% variation in valuations between three agents so we were a bit nervous having sold it at the top end.  The surveyor asked if we had had a lot of interest in the property, and as we had several asking price offers within the first week he was happy with the value.  I think if it had taken a while to sell he might have been less convinced.

AdrianC

There are ALWAYS comparables. You just need to do a bit of work to adjust for differences.

What else are your buyers going to be looking at around the area?

Mon2907

Ramouth said:

How long was your house on the market for before you found a buyer?  When we sold our place there was an 23% variation in valuations between three agents so we were a bit nervous having sold it at the top end.  The surveyor asked if we had had a lot of interest in the property, and as we had several asking price offers within the first week he was happy with the value.  I think if it had taken a while to sell he might have been less convinced.

We didn’t have to go through an estate agent, someone who rents on the same estate had seen the estate agents coming over and asked if we were selling, we told them we were and that based on their valuations we were going to put on for 160 and if they wanted to make an offer we would accept and not put it on the market. She didn’t ask about that, I did say we were selling to people off the estate and that we hadn’t gone through the estate agents in the end after they’d been round to value it. I wish I’d provided more information now! 

Crashy_Time

Mon2907 said:

We’re in the process of selling our property and had a lenders valuation today (sent on behalf of our buyers bank). She asked a few questions about how we arrived at the price - we had two EA’s value the property, one at 170,000 another at 165,000, we put it on for 160 and sold for that price.
I’m nervous because before she left she said the house would be hard to value as there are comparables; she’s right, its something we looked in to before selling and the EA’s also made this comment. Neighbouring villages are more ‘sought after’ so the prices for a similar property there range from 180-220 but my concern is the area isn’t comparable.
Now I’m worried about what they’ll use to arrive at their decision, and lack of comparables often result more often in down valuations. Anyone been in a similar situation? 

They will use their own take on the global/UK economic situation regarding interest rates etc. The EA`s tend to just be trying to drum up business, and will talk discounting the price once they have you on their books and signed to a contract.

Mickey666

AdrianC said:

There are ALWAYS comparables. You just need to do a bit of work to adjust for differences.

What else are your buyers going to be looking at around the area?

Well, up to a point, but then the 'adjust for differences' becomes hugely subjective making the comparables not very comparable at all.

I know of a probate sale where the property was valued by three EAs specialising in up-market 'unique' properties and the estimated prices ranged from £350k to £600k!  

Crashy_Time

Mickey666 said:

AdrianC said:

There are ALWAYS comparables. You just need to do a bit of work to adjust for differences.

What else are your buyers going to be looking at around the area?

Well, up to a point, but then the 'adjust for differences' becomes hugely subjective making the comparables not very comparable at all.

I know of a probate sale where the property was valued by three EAs specialising in up-market 'unique' properties and the estimated prices ranged from £350k to £600k!  

Most properties are not that unique though, and there is definite trend for "down-valuing" from banks (if not from EA`s!) as global economic volatility increases.

Mickey666

Crashy_Time said:

Mickey666 said:

AdrianC said:

There are ALWAYS comparables. You just need to do a bit of work to adjust for differences.

What else are your buyers going to be looking at around the area?

Well, up to a point, but then the 'adjust for differences' becomes hugely subjective making the comparables not very comparable at all.

I know of a probate sale where the property was valued by three EAs specialising in up-market 'unique' properties and the estimated prices ranged from £350k to £600k!  

Most properties are not that unique though, and there is definite trend for "down-valuing" from banks (if not from EA`s!) as global economic volatility increases.

You're right, most are not unique . . . by definition

As for banks down-valuing properties, surely that's really only an issue for anyone looking for very high LTV loans - mostly FTBs I guess.   I don't know what percentage of the market these buyers make up but assuming a typical chain is four properties then FTBs are going to be around only 25% of the market.  Plus, of course, there are many buyers out there who don't need any loans at all, so they are unlikely to even get a bank valuation.