Worried about valuation

Crashy_Time

Mickey666 said:

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.

"Down-valuing" mainly affects sellers trying to get a certain price for their property (the thread is from a seller concerned about valuation) the FTB can walk away slightly sad that they didn`t get the "one", but knowing that they saved money and there will always be another property to buy, and cash buyers are unlikely to pay over a bank valuation?

NameUnavailable

What's the square footage of the house? What's the typical price per Sq foot of properties that have sold recently in your area?

It's a good starting point to determine if your house is priced in line with the local market.

Mickey666

Crashy_Time said:

Mickey666 said:

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.

"Down-valuing" mainly affects sellers trying to get a certain price for their property (the thread is from a seller concerned about valuation) the FTB can walk away slightly sad that they didn`t get the "one", but knowing that they saved money and there will always be another property to buy, and cash buyers are unlikely to pay over a bank valuation?

Don't underestimate determined buyers - who do you think is driving up prices at the moment while rushing to beat the SDLT holiday deadline?  Also, how many cash buyers are going to see a bank valuation anyway?  (I'm referring to a REAL cash buyer, ie someone with the necessary funds without recourse to a loan).

Mon2907

NameUnavailable said:

What's the square footage of the house? What's the typical price per Sq foot of properties that have sold recently in your area?

It's a good starting point to determine if your house is priced in line with the local market.

I have no idea! That’s not good is it! I know a smaller sized property near by sold for 150 in December last year, and then another a mile away for 170 in January according to land registry. We seem to sit somewhere in the middle but they’re the closest like for likes I could find without looking further a field. When we go further a field the areas are a lot better and thus reflected in sold prices - 2 miles away the same properties have sold for 180 plus. I think it’s realistic to expect the valuation to come in at 150 - expect the worse I guess. Our purchasers are first time buyers so the risk is higher. Luckily we could meet them half way or take the full down valuation if it gets to that point. We did feel both EAs over valued the property and why we ignored their estimates, luckily we didn’t need them in the end anyway as someone made an offer to us noticing we were selling. I guess there’s no point worrying until I have something to worry about. Survey completed yesterday so hoping it’s not long before they let the buyers know. 

Sunsaru

Mon2907 said:

NameUnavailable said:

What's the square footage of the house? What's the typical price per Sq foot of properties that have sold recently in your area?

It's a good starting point to determine if your house is priced in line with the local market.

I have no idea! That’s not good is it! I know a smaller sized property near by sold for 150 in December last year, and then another a mile away for 170 in January according to land registry. We seem to sit somewhere in the middle but they’re the closest like for likes I could find without looking further a field. When we go further a field the areas are a lot better and thus reflected in sold prices - 2 miles away the same properties have sold for 180 plus. I think it’s realistic to expect the valuation to come in at 150 - expect the worse I guess. Our purchasers are first time buyers so the risk is higher. Luckily we could meet them half way or take the full down valuation if it gets to that point. We did feel both EAs over valued the property and why we ignored their estimates, luckily we didn’t need them in the end anyway as someone made an offer to us noticing we were selling. I guess there’s no point worrying until I have something to worry about. Survey completed yesterday so hoping it’s not long before they let the buyers know. 

I actually logged this morning to say the very same thing! You're seem quite flexible in the outcome so I'll keep my crossable bits crossed for you.

Mon2907

Sunsaru said:

Mon2907 said:

NameUnavailable said:

What's the square footage of the house? What's the typical price per Sq foot of properties that have sold recently in your area?

It's a good starting point to determine if your house is priced in line with the local market.

I have no idea! That’s not good is it! I know a smaller sized property near by sold for 150 in December last year, and then another a mile away for 170 in January according to land registry. We seem to sit somewhere in the middle but they’re the closest like for likes I could find without looking further a field. When we go further a field the areas are a lot better and thus reflected in sold prices - 2 miles away the same properties have sold for 180 plus. I think it’s realistic to expect the valuation to come in at 150 - expect the worse I guess. Our purchasers are first time buyers so the risk is higher. Luckily we could meet them half way or take the full down valuation if it gets to that point. We did feel both EAs over valued the property and why we ignored their estimates, luckily we didn’t need them in the end anyway as someone made an offer to us noticing we were selling. I guess there’s no point worrying until I have something to worry about. Survey completed yesterday so hoping it’s not long before they let the buyers know. 

I actually logged this morning to say the very same thing! You're seem quite flexible in the outcome so I'll keep my crossable bits crossed for you.

Thank you!! I’m never buying or selling a house again 🤣

Sunsaru

Mon2907 said:

Sunsaru said:

Mon2907 said:

NameUnavailable said:

What's the square footage of the house? What's the typical price per Sq foot of properties that have sold recently in your area?

It's a good starting point to determine if your house is priced in line with the local market.

I have no idea! That’s not good is it! I know a smaller sized property near by sold for 150 in December last year, and then another a mile away for 170 in January according to land registry. We seem to sit somewhere in the middle but they’re the closest like for likes I could find without looking further a field. When we go further a field the areas are a lot better and thus reflected in sold prices - 2 miles away the same properties have sold for 180 plus. I think it’s realistic to expect the valuation to come in at 150 - expect the worse I guess. Our purchasers are first time buyers so the risk is higher. Luckily we could meet them half way or take the full down valuation if it gets to that point. We did feel both EAs over valued the property and why we ignored their estimates, luckily we didn’t need them in the end anyway as someone made an offer to us noticing we were selling. I guess there’s no point worrying until I have something to worry about. Survey completed yesterday so hoping it’s not long before they let the buyers know. 

I actually logged this morning to say the very same thing! You're seem quite flexible in the outcome so I'll keep my crossable bits crossed for you.

Thank you!! I’m never buying or selling a house again 🤣

In March I became a FTB, and although it was pretty smooth in terms of the process it was still stressful in parts. Looking at those who are selling/in chains/etc I am 100% certain that I ain't playing the game again, EVER! 

Crashy_Time

Mickey666 said:

Crashy_Time said:

Mickey666 said:

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.

"Down-valuing" mainly affects sellers trying to get a certain price for their property (the thread is from a seller concerned about valuation) the FTB can walk away slightly sad that they didn`t get the "one", but knowing that they saved money and there will always be another property to buy, and cash buyers are unlikely to pay over a bank valuation?

Don't underestimate determined buyers - who do you think is driving up prices at the moment while rushing to beat the SDLT holiday deadline?  Also, how many cash buyers are going to see a bank valuation anyway?  (I'm referring to a REAL cash buyer, ie someone with the necessary funds without recourse to a loan).

So you are saying that someone with the cash to buy a house outright wouldn`t bother with getting a handle on the market valuation of the property? Interesting belief,  but one I don`t share though

Ozzuk

Nothing you can do right now, I wouldn't worry too much.  Most people market at suggested price and accept offers - you went under so hopefully your valuation will be fine.  Lack of obvious comparable may be an impact, but the market is very strong at the moment - despite many people saying it would drop, prices are rising in many areas and 10% average increase is predicted for this year.  Rightly or wrongly our property market is being protected as much as possible by the government.  It seem much less common for down valuations compared with 1-3 years ago so hold tight and good luck!

Ozzuk

Crashy_Time said:

, there is definite trend for "down-valuing" from banks (if not from EA`s!) as global economic volatility increases.

Do you have any evidence to support that - every indication/report I see says the opposite.  The government is predicting a rapid swing in economy not seen since 1941, house prices are rising.  People want to move - they've been stuck in their properties for over a year, demand is very high.  The much predicted crash hasn't happened and there is no indication is it imminent - though always happy to hear your predictions on percentage drop and time frame.  Unless you meant of course that the trend for down valuing is reducing.