Buyers lender undervalued property

GDB2222

TheLeonC said:

GDB2222 said:

These valuations are for different purposes, so the 11% difference may simply reflect different instructions given to the valuers.

The proposed new lender wants a conservative figure - the amount the property can fetch pretty quickly in a forced sale. After all, if the lender has to foreclose, that's exactly the position they will be in. They won't be able to hang on for months, waiting for the one perfect buyer.

The HTB lender, on the other hand, wants a more optimistic value. The higher the value, the more you have to pay them, after all. So, they can look at the price achievable with lengthy marketing, in the most favourable conditions.  

The confusion for us is that the HTB survey was done 1 month ago with comparable property sales in the area to evidence that valuation, we find it hard to believe that the property has dropped 30k in 1 month, but looking at reviews on the company the bank used they aren’t exactly brilliant! A lot of similar complaints,1.7 on Trustpilot isn’t the best!

If the surveyor tends to work mainly doing these HTB valuations, then you can see why they are getting a lot of flak. You may be pleased with their figures now, but if you can’t sell at that price the HTB lender will still need to be repaid on the basis of an optimistic valuation. 

Can you appeal the HTB valuation, to get it reduced? 

TalieTalie

Can I ask was it valued by ESURV by any chance? They undervalued mine by £50,000 and they’re seriously undervaluing in the South East of London right now! 

theartfullodger

Probably valuation is what it's really worth.  

[Deleted User]

theartfullodger said:

Probably valuation is what it's really worth.  

Which valuation? 

I should be delighted to be buying your house!

theartfullodger

[Deleted User] said:

theartfullodger said:

Probably valuation is what it's really worth.  

Which valuation? 

I should be delighted to be buying your house!

Not selling currently but I'll bear you in mind...

ReadySteadyPop

DE_612183 said:

also what are the values for reference purposes - £30k on £1m property has a very different impact on one which is £100k

Very few 100k properties will be getting down-valued by 30k but down-valuations (really just correct valuations for the current market) are very common now as mortgage rates have gone up so much and are expected to rise further.

ReadySteadyPop

TheLeonC said:

GDB2222 said:

These valuations are for different purposes, so the 11% difference may simply reflect different instructions given to the valuers.

The proposed new lender wants a conservative figure - the amount the property can fetch pretty quickly in a forced sale. After all, if the lender has to foreclose, that's exactly the position they will be in. They won't be able to hang on for months, waiting for the one perfect buyer.

The HTB lender, on the other hand, wants a more optimistic value. The higher the value, the more you have to pay them, after all. So, they can look at the price achievable with lengthy marketing, in the most favourable conditions.  

The confusion for us is that the HTB survey was done 1 month ago with comparable property sales in the area to evidence that valuation, we find it hard to believe that the property has dropped 30k in 1 month, but looking at reviews on the company the bank used they aren’t exactly brilliant! A lot of similar complaints,1.7 on Trustpilot isn’t the best!

Are you using PropertyLog to do a wider comparison of price drops, 30k in one month does sound a bit intense.

ReadySteadyPop

theartfullodger said:

Probably valuation is what it's really worth.  

 The OP is saying other houses in the area are selling for 30k more than the valuation though?