House dropped in value?

Barmy_Army_92

I was just changing some direct debit details on my Nationwide mortgage account and noticed they had an estimated "value your home tool". We completed the purchase of the house for £200K in September. In our area, as across the country, prices have continued to rise. The house was valued by Nationwide and an independent surveyor at £200K, pretty much 12 months ago. 

Anyway, when I just checked this tool - Nationwide now estimates the property to be worth £194K. We aren't planning on selling anytime in the next five years [minimum], and I wasn't interested before I saw the tool about the value. But I am surprised at the result and wonder if I should be concerned, mainly thinking about when it's time to remortgage in 5 years, if the value is already lower in an upward trending market. 

jaelato1

i would ignore it - not accurate at all

london21

Unless the house was actually valued, that is just an estimate using their system. 

Not selling so nothing to worry about. 

ACG

I dont know what the nationwide tool uses but where I live there is one side of the road with detached 3 bedroom houses and on the other side semi detached 3 bed houses. Some people have done extensions and made their house a 4 bed house. 

If you had bought a 4 bed detached house, chances are your house would have cost more than any of the neighbours. If it is just purely going off sold figures in that instance, then it would look like the local prices have dropped, where as in reality it is comparing apples with oranges.