Mortgage valuation question

jay530

Hey all,

We have a valuation booked soon and until I hear back from that, I'm not sure what to expect.

We offered 5k over the asking price. A slightly better house was sold 12 months ago at the same asking price. However as we all know, prices have shot up since then and Zoopla currently estimates the other house as 25k over the sale price. Back to our potential home - Zoopla have actually estimated the value of the property as 10k higher than what we offered.

I guess my question is how close are the bank valuations (Nationwide) to what these estimates suggest? I know they should be taken with a pinch of salt but I have nothing else to compare with until I get the results of the valuation/homebuyer's report. 

Thanks! 

user1977

Zoopla is pretty useless - I don't think it does much more than apply average price changes (for a vast region) to the last registered price. So ignore it. Just wait for the valuation.

Thrugelmir

The valuer will base their decision on recently sold property prices in the locality (they'll constantly be contacting a number of EA's) and the condition/locality of the property itself when making comparisons. Also they'll take into account any specific lender requirements. 

jay530

user1977 said:

Zoopla is pretty useless - I don't think it does much more than apply average price changes (for a vast region) to the last registered price. So ignore it. Just wait for the valuation.

I figured as much. Just feeling anxious

jay530

Thrugelmir said:

The valuer will base their decision on recently sold property prices in the locality (they'll constantly be contacting a number of EA's) and the condition/locality of the property itself when making comparisons. Also they'll take into account any specific lender requirements. 

Thanks - I have some confidence in the price based on the current market but I'm just praying that I'm not overshooting in the bank's eyes.

Willow226

jay530 said:

Thrugelmir said:

The valuer will base their decision on recently sold property prices in the locality (they'll constantly be contacting a number of EA's) and the condition/locality of the property itself when making comparisons. Also they'll take into account any specific lender requirements. 

Thanks - I have some confidence in the price based on the current market but I'm just praying that I'm not overshooting in the bank's eyes.

Hi Jay, how did your valuation go? The house we are hoping to buy has had its valuation this morning. I haven’t heard anything yet (I think i might get this in the next couple of days). I’m also worried I get an undervaluation. House was valued at 70k by EA, asking price was 70k and we had our offer accepted at 70k. 

RogerBareford

jay530 said:

Thrugelmir said:

The valuer will base their decision on recently sold property prices in the locality (they'll constantly be contacting a number of EA's) and the condition/locality of the property itself when making comparisons. Also they'll take into account any specific lender requirements. 

Thanks - I have some confidence in the price based on the current market but I'm just praying that I'm not overshooting in the bank's eyes.

If you have looked at local sold prices and some comparison between houses then i would say your opinion is going to be much more accurate than Zooplas.

Willow226 said:

jay530 said:

Thrugelmir said:

The valuer will base their decision on recently sold property prices in the locality (they'll constantly be contacting a number of EA's) and the condition/locality of the property itself when making comparisons. Also they'll take into account any specific lender requirements. 

Thanks - I have some confidence in the price based on the current market but I'm just praying that I'm not overshooting in the bank's eyes.

Hi Jay, how did your valuation go? The house we are hoping to buy has had its valuation this morning. I haven’t heard anything yet (I think i might get this in the next couple of days). I’m also worried I get an undervaluation. House was valued at 70k by EA, asking price was 70k and we had our offer accepted at 70k. 

Like above if you have looked at local sold prices and can justify your price using them then you most likely have nothing to worry about.

jay530

Willow226 said:

Hi Jay, how did your valuation go? The house we are hoping to buy has had its valuation this morning. I haven’t heard anything yet (I think i might get this in the next couple of days). I’m also worried I get an undervaluation. House was valued at 70k by EA, asking price was 70k and we had our offer accepted at 70k. 

Hey Willow,

So our valuation came back identical to our offer (which I read is normal for valuation to just match your offer rather than go higher). I didn't mind anyway as long as it wasn't down-valued so happy days for us, mortgage offer issued. Hope yours went well? I'm sure between yourself, seller and EA if you're all agreed on the 70k mark, the valuation should be fine. 

No41edwardianhouse

Valuation tomorrow. The house next door sold in Feb 2021 for well over 100k less than what we are paying. However, it was a “doer upper”! We have looked at other similar properties in the local area and the price we are paying seems to stack up. Will the surveyor just look at the house next door and think, nah!! 

canaldumidi

Also depends on your LTV.

davemorton

No41edwardianhouse said:

Valuation tomorrow. The house next door sold in Feb 2021 for well over 100k less than what we are paying. However, it was a “doer upper”! We have looked at other similar properties in the local area and the price we are paying seems to stack up. Will the surveyor just look at the house next door and think, nah!! 

What is the difference in value/?