How are mortgage valuations done?

Mark_Michalowski

I put my 2-bed semi up for sale at the start of August last year for £180k. I had 15 viewings organised within the first week (two afternoons - which I actually really enjoyed!) and offers flooded in, right up to £200k!

The estate agents and I knew that a mortgage valuation would most certainly downvalue it (every house in my street is of a different design and there's nothing comparable that's sold in the past six months for the mortgage company to use to compare). In fact the mortgage valuer was in and out in under ten minutes: I think he just wanted to check the house actually existed, since he barely looked at anything.

Anyways, we pointed out to the buyers that the house was likely to be downvalued - and they assured us (both the EA and myself personally) that it wouldn't be an issue, and that they could make up any downvaluation separately to their mortgage.

Of course, the house was downvalued - back to £180k.

And at that point, the buyers wailed "Oh, woe is us! The house has been downvalued by the mortgage company, so we can only offer you £185k..."

At that point, I should probably just have seen the oncoming storm and gone looking for another buyer. But, of course, I'd put in an offer on a house I loved and didn't want the whole thing to fall apart.... So I managed to negotiate them up to £187,500 (still £12,500 less than they'd promised they could afford).

Now, of course, they're arguing about discounts for the electrics, because they need some work.....

Grrrrrr!

I guess the moral is, if an offer looks to good to be true - or if it just looks good - keep some contingency plans in hand, just in case..

Good luck!

Mxx

Willow226

@Mark_Michalowski oh dear! Sounds like a pain to me! 

Luckily they are not hoping on my offer to move anywhere else… it’s a house they have from inheritance so just selling it. I have no chain so just buying. I’m hoping it gets valued at the exact 70k then we can all move on happily (and hopefully quickly due to our circumstances!) x

Mark_Michalowski

Indeed it is, Willow226!

Your situation sounds more hopeful, and I think, in the £70k price-range, there's less wiggle room for things to go too far in either direction.

Good luck - let us know how it goes

Mxx

Willow226

Valuation tomorrow… nervous as hell lol 

p00hsticks

Willow226 said:

badger09 said:

Willow226 said:

badger09 said:

Willow226 said:

@Mahsroh thank you! I get what you’re saying. I’m hoping he will agree ‘in the region of 70,000’ lol! 

I was hoping that there was more cases of the purchase price being agreed than not. Just trying to settle anxieties. 

Valuation isn’t until Tuesday! 

What was the asking price?

What have similar properties sold for recently?

House was valued by the EA and because of the family wanting to sell it quickly (it was their grandmas property and she passed away) they put it up at the valuation of £70,000, we offered that, and they accepted for a quick sale (we are first time buyers, no chain). 

Similar properties are around that price, some a little lower, some a fair bit higher… it’s an end terrace property with a front, side and back garden. There is a drive and a garage. The inside does need updating though. We are in the hull area. 

 

Ok, that sounds reasonable. Problems often arise when FTBs offer way above asking price then its valued lower by lender, & they can't make up the shortfall. I'd check actual sold prices if you can, rather than when they're shown as STC as that doesn't tell you what was paid  - just what was asked

You mention grandma has passed away. Has Probate been granted yet? In other words, can vendors/executors legally sell the house yet? 

Yes the sellers have the ‘grant of probate’ document… I have been told this is the only thing required to be able to sell the property. 

Have you checked that the property is registered with the Land Registry ? You can pay £3 to get the actual title and plan if you want (your solicitor will probably get a copy at some point in the process and ask you to confirm that it covers what you think you are buying) but the main thing is that it is actually showing up on the register - if it's been in the family for a long time without changing hands or having a mortgage then it may not ever have been registered with them. If this is the case, then you need t oconfirm that the family have the deeds to the property to show that they actually own it, and it will need to be registered as part of the purchase. 

https://www.gov.uk/search-property-information-land-registry

Willow226

Hi… yes it’s registered on the land registry, and they have the grant of probate linking it all together and giving them the rights to sell. 

The valuer went to the property this morning but would not give the seller any indication at all as to the price he was thinking… no little winks or nudges or anything haha… will have to sit tight and wait for the broker to chase them up for the outcome now. 

Iv decided I don’t like this game anymore. I’m a nervous wreck x 

Willow226

Just gets better…. 

Property valued at 0 until a ‘roofing report my a qualified roofing specialist’ is completed and a report is written on ‘the unevenness of the solid ground floor’ … I didn’t even notice and unevenness and I really don’t know what type of report I am asking anyone to do?? 

Once these reports are done then the property will be valued correctly for us to carry on!