Does a seller find out a lender’s valuation?

pjs493

I’ve seen a few posts about people getting into difficulty when a leader values a property below what the agreed purchase price is. Obviously this isn’t a problem if the lender values the property for more than the asking price. 

My question is does a seller ever find out the lender’s valuation? Or would they only know this if the buyer shared the information with them?

So for example if price was agreed for X and the lender valued it above this price, would the seller find out and potentially ask for more money? Or is this figure private between the buyer, lender, and the buyer’s solicitor?

DE_612183

why would a buyer share that information?

Probably only when they wanted to discuss a reduction - after all the buyer is paying for the service in the same way the seller paid for the Estate Agents valuation.

DE_612183

I also don't think a valuation would ever value above what the buyer has agreed to pay - why would they for a mortgage - doesn't make sense.

eddddy

pjs493 said:

My question is does a seller ever find out the lender’s valuation? Or would they only know this if the buyer shared the information with them?

The seller would only know if the buyer chose to tell them.

And in my experience, lenders will verbally tell buyers what the valuation is, but they won't get it in writing until the buyer gets the official mortgage offer.  So until then, the buyer might say to the seller "The lender's valuation was £x" - but they will have nothing in writing to confirm this (and could be fibbing).


FWIW, I've had a mortgage valuation that was (slightly) higher than the agreed purchase price. 

But if, for example, you're going for a mortgage with a 80% LTV limit - it will be 80% of the purchase price or valuation, whichever is lower.

So the higher valuation didn't allow me to borrow any more money.

chanz4

valuation for mortgage if above just puts it at the price offered

Hoenir

The only interest the mortgage lender has in the valuation is that the property provides suitable and adequate security for the monies being advanced.  Property valuations are subjective. 

user1977

Given the valuation is meant to be what the property would fetch on the open market, and assuming the offer is the best one you got after advertising on the open market - it would take a brave surveyor to say it's actually worth more! Though I have seen such a comment where they think the price is suspiciously low.

newsgroupmonkey_

DE_612183 said:

I also don't think a valuation would ever value above what the buyer has agreed to pay - why would they for a mortgage - doesn't make sense.

Mine did.

And my Missus works in the industry and says it's unusual.
I certainly wouldn't have shared that information with the vendor!

pjs493

Thanks for all the contributions. The house I’m interested in has been reduced several times and I’m planning on putting in an offer below the asking price. I have justification based on a neighbouring house selling for less despite having brand new bathrooms and kitchen whereas the house I’m looking to buy needs a new kitchen and two new bathrooms, plus decorating. 

I was just worried that if I put in a low offer, and it was accepted, it could potentially be valued for more than my offer. I was worried if that was the case if the seller would somehow find that out as part of the process. 

user1977

pjs493 said:

I was just worried that if I put in a low offer, and it was accepted, it could potentially be valued for more than my offer. I was worried if that was the case if the seller would somehow find that out as part of the process. 

Well, even if they do, so what? Then they'd have to find somebody prepared to pay the higher price, and obviously they've already failed to do so..

youth_leader

I was the vendor.  I could only find out the Nat West bank mortgage surveyor valued my house at £0 because they wanted a damp/timber survey.