Property downvalued by 35-40K

FreeBear

Even if the mortgage company has decided on a lower valuation, the buyer still has the option to make up the difference with cash from savings.

GDB2222

bobster2 said:

Estate agent valuations are usually the price they think you should market the property for - e.g. asking price.

Properties sell on average for 3-5% below asking price. So a £475k estate agent valuation for marketing - could mean expect to complete the sale at £450k (5% below asking). Not that far from their valuations.

Exactly right. The estate agents need to get the property on their books in order to have any chance of selling it and earning commission.  So, the figures you have been told by the estate agents reflect your own thoughts. Plus, sellers are more likely to choose an agent that is optimistic about getting a high price. 

I am interested to hear what the OP's estate agent advises now. 

[Deleted User]

It's a very unfortunate scenario. We once had a valuation at 300k which was no use, then got another at 330k. It's an anecdote but the 10% difference led me to question the concept of "professional" valuation. 

BikingBud

[Deleted User] said:

It's a very unfortunate scenario. We once had a valuation at 300k which was no use, then got another at 330k. It's an anecdote but the 10% difference led me to question the concept of "professional" valuation. 

Perhaps you could expand upon your classification "no use".

How did you determine that?

Just because it was at odds to what you wanted? Or something more objective?

[Deleted User]

BikingBud said:

[Deleted User] said:

It's a very unfortunate scenario. We once had a valuation at 300k which was no use, then got another at 330k. It's an anecdote but the 10% difference led me to question the concept of "professional" valuation. 

Perhaps you could expand upon your classification "no use".

How did you determine that?

Just because it was at odds to what you wanted? Or something more objective?

A valuation of 330k was necessary for the remortgage.  So 300k didn't work for us.

Actually it's what strengthens my point. The 300k valuation wasn't procedurally flawed. Both were by the book valuations a month apart 10% different.

So when anyone says the surveyors valuation is "the value", I think sure...plus or minus 10%.

BikingBud

Did you take additional lending and become "over leveraged" on the anticipated price rise?

Or would you have truly been in negative equity against the original loan?

If the former it is your issue, if the latter it might be an indicator of an issue for many.

The lender pays those it trusts to value properties, they deem them professional enough.

ReadySteadyPop

gm786 said:

Hi 
Our buyers bank valuers Halifax via E Serve have down valued our property by 35-40K. Was offered 475K but they valued at 435-440K
We were going to use the proceeds from this sale to buy another property and also the valuation seems very low as we had 5 estate agents all value between 475-500K
435-440K seems low even as per our estate agent

We have asked the buyer to see if they want to try a different lender but afraid that the new lender may use the same valuer and we end up with similar or may be even less valuation

I couldn't find a thread on this topic recently but it seems from the various estate agents we spoke that this is a very low valuation and we shouldn't accept. What is not in our favour is that there are many properties of our size for sale and market doesn't seem good for them where we are 
Also recently any property our size has not sold in our area so there seem to be no comparables. Properties sold nearby were either smaller than ours or pretty old.

What are people's views? Anyone been through something like this recently that they can share their experience please?

Thank you 

Offer lower on the next property is the way to get things moving.

sheramber

We have atleast 10 people including estate agents telling us it not right

But, presumably, none of them are willing to buy it at that price.

Are the other similar properties that are not selling marketed at a similar price?  That would indicate the price is too high.

How bad do you want the new build? 

Can you increase the mortgage you take out for it?
Can you add more to your deposit?

if you do not beleiee the valuation you could get your own one done.

Zerforax

Did they just do a desktop valuation or did someone actually come out to see the property?

ReadySteadyPop

FreeBear said:

Even if the mortgage company has decided on a lower valuation, the buyer still has the option to make up the difference with cash from savings.

Not a good idea with mortgage rates rising and cost of living increases, many buyers will be wary of doing this now.