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Valuation came back significantly lower than agreed price. Need help with negotiating techniques.

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  • maxxpayne
    maxxpayne Posts: 145 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    maxxpayne said:
    ....
    The mortgage has also been approved. The lender did a desktop valuation only.
    Here's the main headline: the surveyor puts down the value to 775k.

    The surveyor also found major issues with windows, roof structure, fireplaces, chimney breasts and flues and recommended remedial work urgently and I assume it'll be another 15-20k extra work needed. Plus some additional recommendation for CCTV drainage inspection, roof inspection etc.
    If it's the 'desktop valuation' it's suspiciously far too detailed.
    If it's your own surveyor, valuation isn't his job.
    AIUI, this is not connected to the mortgage providers desktop valuation.

    It was a Level 2 surveyor commissioned by the OP, and the surveyor has decided to make comment about the valuation. You are right that this is not really what he is employed for, but he has made comment on the valuation anyway. 
    You could say it is beyond his remit and he should have kept quiet, or you could say he was trying to do his client a favour. Either way the deed is done.

    OP - Valuing property is not an exact science and +/- 5% is not so unusual

    The surveyor also found major issues with windows, roof structure, fireplaces, chimney breasts and flues and recommended remedial work urgently and I assume it'll be another 15-20k extra work needed. Plus some additional recommendation for CCTV drainage inspection, roof inspection etc.

    Some of this is standard 'cut and paste' stuff about CCTV drain  and roof inspections.
    Regarding the other stuff the key point is what is really meant by 'major' .? One persons 'major' is somebody else's a DIY job can that can wait a couple of years. So some detail about these 'major' problems would be useful.
    Correct. This was RICS level 2. I also paid extra for valuation under RICS guidelines. 

    Some could be cut and paste but there’s photographic evidence of issue with roof and windows so I have complete faith in the report. 
  • maxxpayne
    maxxpayne Posts: 145 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    I have to rush to get some things done but I’ll update with relevant details. Thanks. 
  • MeteredOut
    MeteredOut Posts: 3,093 Forumite
    1,000 Posts Second Anniversary Name Dropper
    maxxpayne said:
    OP, what was the mortgage valuation (desktop survey)?

    Have you checked the RICS surveyors valuation wasn't, for example, rebuild cost?
    I don’t know what the desktop valuation was. My bank didn’t tell me. 

    The reinstate cost is 325k
    Ok, how much are you borrowing from the lender, and how much equity are you putting into the property? If you have a high LTV, that might indicate the lenders valuation was towards the upper end. 
  • maxxpayne
    maxxpayne Posts: 145 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    maxxpayne said:
    ....
    The mortgage has also been approved. The lender did a desktop valuation only.
    Here's the main headline: the surveyor puts down the value to 775k.

    The surveyor also found major issues with windows, roof structure, fireplaces, chimney breasts and flues and recommended remedial work urgently and I assume it'll be another 15-20k extra work needed. Plus some additional recommendation for CCTV drainage inspection, roof inspection etc.
    If it's the 'desktop valuation' it's suspiciously far too detailed.
    If it's your own surveyor, valuation isn't his job.
    AIUI, this is not connected to the mortgage providers desktop valuation.

    It was a Level 2 surveyor commissioned by the OP, and the surveyor has decided to make comment about the valuation. You are right that this is not really what he is employed for, but he has made comment on the valuation anyway. 
    You could say it is beyond his remit and he should have kept quiet, or you could say he was trying to do his client a favour. Either way the deed is done.

    OP - Valuing property is not an exact science and +/- 5% is not so unusual

    The surveyor also found major issues with windows, roof structure, fireplaces, chimney breasts and flues and recommended remedial work urgently and I assume it'll be another 15-20k extra work needed. Plus some additional recommendation for CCTV drainage inspection, roof inspection etc.

    Some of this is standard 'cut and paste' stuff about CCTV drain  and roof inspections.
    Regarding the other stuff the key point is what is really meant by 'major' .? One persons 'major' is somebody else's a DIY job can that can wait a couple of years. So some detail about these 'major' problems would be useful.

    Some more details:

    - Windows exhibit condensation and misting between panes, confirming failed double-glazed units. This results from the breakdown of the perimeter seal, leading to internal moisture. Bedroom window shows scattered desiccant beads within the spacer bar area, further indicating unit failure

    - A specialist invasive plant survey is strongly recommended, ideally carried out in the summer, when Japanese knotweed is in active growth and more readily identifiable.

    - There are visible white mould deposits on a number of timber members, particularly rafters and purlins. This is typically indicative of elevated humidity levels and poor ventilation within the loft space. While the mould appears to be surface-level at present and not affecting the structural integrity of the wood, it is advised that ventilation be improved.

    - There is no modern breathable membrane or roofing felt beneath the roof tiles etc. etc.








  • user1977
    user1977 Posts: 17,870 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    edited 28 March at 7:38PM
     That last post all sounds like relatively trivial stuff (especially the bit which translates as “I didn’t see any Japanese knotweed”!).
  • Badboi
    Badboi Posts: 76 Forumite
    Second Anniversary 10 Posts Name Dropper
    Dg window panel replacement only is a few hundred, a dehumidifier a few hundred, knotweed that the surveyor hasn’t seen but just suspects, nothing, so where you get 15k of work from I don’t know?

    The recommendation stuff is standard for every survey to cover their !!!!!!, surprised they didn’t recommend a doc specialist survey 😂
  • maxxpayne
    maxxpayne Posts: 145 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    maxxpayne said:
    OP, what was the mortgage valuation (desktop survey)?

    Have you checked the RICS surveyors valuation wasn't, for example, rebuild cost?
    I don’t know what the desktop valuation was. My bank didn’t tell me. 

    The reinstate cost is 325k
    Ok, how much are you borrowing from the lender, and how much equity are you putting into the property? If you have a high LTV, that might indicate the lenders valuation was towards the upper end. 
    LTV is roughly 50%. So yes I’ve put down a large deposit. 
  • maxxpayne
    maxxpayne Posts: 145 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Badboi said:
    Dg window panel replacement only is a few hundred, a dehumidifier a few hundred, knotweed that the surveyor hasn’t seen but just suspects, nothing, so where you get 15k of work from I don’t know?

    The recommendation stuff is standard for every survey to cover their !!!!!!, surprised they didn’t recommend a doc specialist survey 😂
    Window panel replacement is a few hundred? Maybe somewhere up north. Also there’s a broken window pane too. The roof worries me most if anything. 
  • housebuyer143
    housebuyer143 Posts: 4,266 Forumite
    1,000 Posts Third Anniversary Name Dropper
    edited 29 March at 7:39AM
    maxxpayne said:
    Badboi said:
    Dg window panel replacement only is a few hundred, a dehumidifier a few hundred, knotweed that the surveyor hasn’t seen but just suspects, nothing, so where you get 15k of work from I don’t know?

    The recommendation stuff is standard for every survey to cover their !!!!!!, surprised they didn’t recommend a doc specialist survey 😂
    Window panel replacement is a few hundred? Maybe somewhere up north. Also there’s a broken window pane too. The roof worries me most if anything. 
    My mum lives in South of England and just got 3 panes fitted and supplied for £300. Replacing glass is cheap - have you actually had any quotes? Also, all these windows would have been obvious on the viewing - I would have expected you to adjust your price before offering for things you can see. 

    If you are worried about the roof, why don't you get a roofer in to look at it rather than jumping to conclusions? The surveyor has said it's probably nothing. 

    I don't think anything you have said requires a reduction on the scale you are asking for. 
  • silvercar
    silvercar Posts: 49,615 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    edited 29 March at 8:39AM
    “Background we agreed to purchase the house for 825k originally. It's a 3 bed semi detached in north London, close to tube and good schools.”

    Sounds like the important areas are covered. Bottom line is do you love the property. 3 bed semis are all over north London, but if I found one in an area I wanted to be in, that I was getting at 825 when it was on at 900, I’d be happy. It’s an area that usually does well, so I wouldn’t want to miss an opportunity to buy. These sort of properties don’t hang around for long.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
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