Valuation process

Wes121708

How can a property be valued when they're hasn't been anything sold recently to compare it to?
We had over lenders valuation come back as 25k under offer. We paid under asking price which was a guide price, does it mean that even the EA weren't able to put a value on it?

Mon2907

We’re waiting for the valuation on our house we’re selling and are in similar circumstances, it’s not undervalued yet but the conveyancer did leave saying they had no comparables which got me worried. We were aware of this when selling so put it on the market below the EA’s guide prices. Be interested to follow your post. They will look further a field from what I’ve been told. 

Wes121708

The seller has only had the property for 4 years and bought as a rental. The only work that's been done in the property by the current owner is changing it from oil to gch. They even have the same cooker from the previous owners! The guide price is 74k more than 4 years ago and honestly don't know how they think it is worth that much more. It's in a village and all the house's a different, only a handful the same.
Maybe he's just a really nice guy and says have it for valuation price! 😂

Wes121708

Looks as if the seller had a lot of offers under guide price and held out for a better offer which we made, it was still under the guide price.  
Does anyone have any experience in dealing with this? Surely if they've had a lot of low offers and the valuation has come back at less than guide price it's most likely he's not going to get what he wants for it.

eddddy

Wes121708 said:

Looks as if the seller had a lot of offers under guide price and held out for a better offer which we made, it was still under the guide price.  
Does anyone have any experience in dealing with this? Surely if they've had a lot of low offers and the valuation has come back at less than guide price it's most likely he's not going to get what he wants for it.

It's difficult for anyone here to guess the seller's mindset, financial circumstances, etc.

• It may be that the seller is getting desperate to sell - as a BTL landlord with an empty property and big mortgage, and/or with other financial problems etc. So if you threaten to walk away, they might accept a lower offer to keep you.

• Or it may be that the seller decides that if you're not prepared to pay the full offer amount, they'll forget about selling and get a new tenant instead

• Or many other possibilities

It you want to reduce your offer, you'll have to make the seller believe that you'll walk away, if they don't accept your lower offer. Otherwise there is no reason for them to accept the lower offer.

user1977

Wes121708 said:

How can a property be valued when they're hasn't been anything sold recently to compare it to?
We had over lenders valuation come back as 25k under offer.

It's unlikely there won't be anything to compare it to. Even if nearby sold properties are of a different style or size, they will indicate the trend for prices per square metre or whatever. 

AdrianC

Wes121708 said:

How can a property be valued when they're hasn't been anything sold recently to compare it to?

There are ALWAYS comparables.

Think a bit wider than just identical properties in that street or estate.
If you were viewing that, what else were you viewing? How did it compare?

Show us a link, we'll show you the comparables.

Wes121708

https://www.rightmove.co.uk/properties/90343069#/

The lender has valued it at 260,000 and we offered 285,000

Wes121708

Just to add it change EA in April as the previous EA didn't manage to get an offer the seller wanted.

Wes121708

We've decided to try and go with another lender and valuation is been booked in for Monday! Praying it's not the same company 😂