Advice pls! Post level 3 survey valuation

Jacky_burger

Good morning all,

Long time lurker and I am hoping to get some advice.

A bit of background info, I am a FTB and buying in London. The offer was accepted on the house and a level 3 survey was done because the property was a bit old (circa 50s). The survey came back mostly positive with some works to be done (hoping no nasty suprises), £5k in the report. The bank's valuation met offer price of £435k however the valuation from the surveyor was £50k lower. I intend to negoiate the price a bit further down based on the report but the valuation seems to be quite far out.

Any advise on what I should do? The valuation of the surveyor seems very low and I am not sure if it is realistic offer £385k post survey.

Thanks for your help!

youth_leader

Did the bank do a proper survey, or was it a desktop?

TheJP

Enjoy surfing Rightmove again. No way the seller will drop £50k on the price.

Jacky_burger

youth_leader said:

Did the bank do a proper survey, or was it a desktop?

The surveyor went to the property but I don't know how detailed it was.

Jacky_burger

TheJP said:

Enjoy surfing Rightmove again. No way the seller will drop £50k on the price.

Exactly, I wouldn't accept that myself and the offer price was in the middle of the estimation house price on Zoopla.

TheJP

Jacky_burger said:

TheJP said:

Enjoy surfing Rightmove again. No way the seller will drop £50k on the price.

Exactly, I wouldn't accept that myself and the offer price was in the middle of the estimation house price on Zoopla.

Good grief. You're banking on zoopla estimates! 

Jacky_burger

TheJP said:

Jacky_burger said:

TheJP said:

Enjoy surfing Rightmove again. No way the seller will drop £50k on the price.

Exactly, I wouldn't accept that myself and the offer price was in the middle of the estimation house price on Zoopla.

Good grief. You're banking on zoopla estimates! 

Your comments are less than helpful and both comments contradict each other.  But I hope this was able to cheer you up and make you feel more superior.

london21

Zoopla prices are not worth relying on.

Check rightmove recently sold prices.

The bank valuation came back at the price you offered?

What condition is the property in, and is it priced accordingly, doubt the seller will accept a lower offer but can try. The seller might relist to find another buyer. 

deano2099

Speak to the surveyor and ask them for the basis of the valuation. I'm surprised they haven't already raised it with you as it's such a large discrepancy. 

Alderbank

The bank's valuation is the valuation given to them by their surveyor. It is not the price hoped for by the estate agent and not the price you think it might be worth
You say 'The bank's valuation met offer price of £435k however the valuation from the surveyor was £50k lower.' Do you mean the bank agreed to make a loan to you for a house priced at £435k subject to their surveyor's valuation?

The surveyor's valuation is a business decision with different criteria than your subjective factors for a home for yourself. The house might have an amazing view or a gorgeously landscaped garden or Lulu Lytle wallpaper throughout which increase its value for you but do not add objectively to its valuation.

It is quite common for the lender's valuation to be less than the price the seller is asking for. It does not mean that you can't have it or that the house is not worth it. It just means that the buyer will have to stump up the difference.

Neither the lender nor the surveyor will debate the valuation with you. However the basis of valuation will be the method advised by RICS. They will have identified three recent local sales as similar to yours as possible, compared the confirmed sale prices on the land registry and applied correcting factors where necessary such as if yours has significantly more land.