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Valuation Range
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IAMIAM
Posts: 1,333 Forumite
Between lenders (Nationwide Countrywide and HSBC L&G Surveyor, 10k difference, desktop valuation at FD is 5k difference to surveyors)
Estate Agents (both down valued what the banks surveyors said by 10-15k)
All affecting my 60% LTV and 75% LTV bracket! It is so subjective!
Estate Agents (both down valued what the banks surveyors said by 10-15k)
All affecting my 60% LTV and 75% LTV bracket! It is so subjective!
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Comments
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@iamiam Unfortunately, this is not an exact science. I had a case which was downvalued by almost 12% by lender A's surveyor last week and valued at the purchase price this week by lender B's surveyor. Go figure.
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Valuation of res property is based on comparable evidence of sold similar units and the Valuers’ own analysis of current market trends. The problem comes in a market that is moving fast (as is the case in my neck of the woods) and the Valuers tendency to be generally pessimistic in market outlook.Ultimately a unit is worth as much as a willing buyer and seller in an open transaction is willing to pay. However Valuers acting for lenders tend to generally err on the side of caution. Should you have your own comparable evidence, you can challenge the Valuers assessment but don’t necessarily expect it to get far - ultimately the Valuers’ client is the lender and their duty of care is predominantly to the lender (in res transactions there is a limited duty of care offered to the applicant more to do with significant defects found at the point of inspection - irrelevant to this case).1
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Judging from your past threads we're talking about a £300k-ish property? Usual margin for error in valuations is at least +/- 5%. £10k difference is +/- 1.7%. It's not an exact science. Prices can change that much during the time it takes to do the transaction!1
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Are you saying that the EA`s though it was worth 15k less than the bank?IAMIAM said:Between lenders (Nationwide Countrywide and HSBC L&G Surveyor, 10k difference, desktop valuation at FD is 5k difference to surveyors)
Estate Agents (both down valued what the banks surveyors said by 10-15k)
All affecting my 60% LTV and 75% LTV bracket! It is so subjective!0 -
Yes, which I found odd. Both EA valued 10k and 15k less than both banks and the desktop0
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Estate Agents don't "value" property. More like they appraise property for marketing purposes only. No Court will accept an unqualified Estate Agents opinion on value as it's nothing more than a punt and see what turns up.IAMIAM said:Yes, which I found odd. Both EA valued 10k and 15k less than both banks and the desktop1 -
Yes, of course it's subjective.IAMIAM said:Between lenders (Nationwide Countrywide and HSBC L&G Surveyor, 10k difference, desktop valuation at FD is 5k difference to surveyors)
Estate Agents (both down valued what the banks surveyors said by 10-15k)
All affecting my 60% LTV and 75% LTV bracket! It is so subjective!
How on earth could it be anything but? There is no absolute, objective way to value a property...0 -
Yes, but the "punt" is usually a higher, silly high in some cases, price designed to reel gullible sellers in, then the EA starts to talk them down once they are on the books and have maybe signed some sort of contract?Marshaltown said:
Estate Agents don't "value" property. More like they appraise property for marketing purposes only. No Court will accept an unqualified Estate Agents opinion on value as it's nothing more than a punt and see what turns up.IAMIAM said:Yes, which I found odd. Both EA valued 10k and 15k less than both banks and the desktop0 -
Definitely odd, usually it is the bank that "down-values" the sellers expectations (egged on by the EA and sometimes opinions on the internet)?IAMIAM said:Yes, which I found odd. Both EA valued 10k and 15k less than both banks and the desktop0
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