Remortgage and stupid valuation report.

daveyjp

chivers1977 wrote: »

I work for a lender and are having loads of customers contesting their valuations at the moment. What we state is to appeal, we need three sold prices in the immediate area of similar properties sold within the last three months. The surveyor will also use his RICS Red Book which has comparables (you will not be given these prices). Most customers are not getting their valuations increased.

The 'Red Book' is the RICS Valuation Standards Manual - nothing secret about it, anyone can buy one, but one thing it does not contain is comparables.

In essence it's the 'rules of the game' for valuing properties so all valuers value similar properties in the same way, but it does not show you HOW to do valuations.

Gambler

The agent is 'disappointed' with the valuation. No ****, it's not your £50K so you're not as disappointed as me !!

She can't understand it as she valued at £250K and 2 other agents valued at £250K and £275K.

How can they all be so far out?

Griptool

toonfish wrote: »

this is inevitable in today's market but it sad so see the HPC'ers gloating at other's misfortune.

Says more about them than it does about estate agents or mortgage brokers.

:rotfl:

Todays Top Twattery Trophy goes to Toonfish.

homer_j_3

Gambler wrote: »

The agent is 'disappointed' with the valuation. No ****, it's not your £50K so you're not as disappointed as me !!

She can't understand it as she valued at £250K and 2 other agents valued at £250K and £275K.

How can they all be so far out?

Because the 1st EA went out and said £250k to get the business.

The 2nd one went out and said, I think we can sell it at 275k - trying to get the business possibly and 3rd one has said you are probably looking 250 knowing what the 2nd has done and not wanting to say more than this (hoping that they will be seen as a light of honesty).

Problem is - you have said its a unique property which has no direct comparibles so the EA can only put finger in the air and best guess.

EA's have no responsibility to anybody but will try and get the best price for the seller.

You have paid for a valuer to look more closely at a property and get you a more honest valuation. The EA has no option but to advise their seller that the property has only been valued up at £200k and anybody who buys with a valuation will get this problem

The worst case scenario is they pull off the market because they cannot afford to drop, the best case scenario is they find someone else that is prepared to pay for their overspend.

When the EA comes back to you stating what the seller has said, then you need to start negotiating but I would be stating that you want it for 200k - forget the demand you perceive there is because everybody is going to come to the same point that you are at now.

Re-iterate to them you have 50% deposit or whatever it is. You are not prepared to pay over the odds, just because someone has put more money into the house than its worth, that is their fault. If they cannot sell at any less than 250k then they are going to be stuck there for another 10 years.

dunstonh

You could pay for your own survey to get a second opinion. If that also comes out at £200k then you would be in a very strong position. If it comes out at £250k then you can go back to the lender with your evidence.

Red2008

Yes we have. We have just had our valuation back from our remortgage and they have valued our house at £175K even though we had it valued in the summer at £225K. This wouldn't have necessarily been a problem as we aren't planning to move anywhere but our rate was with a LTV of 75%. When I applied on-line for my remortgage with Yorkshire BS I gave what I thought was a modest property value of £210K, giving us less than 75% LTV (We owe £134K). Our valuation was a drive by so they did offer us the opportunity to have an internal valuation. However after a bit of research i discovered as you may know that surveyors are valuing at 10% less anticipating a drop in prices so I didn't want to throw away another £300 and be in the same situation. Instead we have decided to pay off the shortfall which is just over £3000. So we will be living off beans on toast this month! Obviously we could have gone to another lender but there doesn't seem to be anything around that is similar (4.89% fixed for two years agreed last month). Sorry I'm not sure what I would do in your situation. If you really love it go for it as long as you are planning to stay for a while and it's definitely good to keep your LTV below 75%. Also I take it that your survey has come back ok on your existing property? Good Luck

Gambler wrote: »

Anybody else experienced a 20% difference?

Gambler

dunstonh wrote: »

You could pay for your own survey to get a second opinion. If that also comes out at £200k then you would be in a very strong position. If it comes out at £250k then you can go back to the lender with your evidence.

Hi dunston, this is our own survey we have paid for ! Even though it's shattered our dreams it's turning out to be money well spent at this point. And there will be a discount on any subsequent properties as we will have to start the dreaded search again. This is potentially the second property to fall through and our first time buyers may not wait too much longer.

EdInvestor

If the estate agents put 10% on the asking price (so as to take into account a 10% bargaining position) and then the surveyor took off 10% of what he may have through was the "real" asking price, then you are up for a 20% drop.But I'd have thought a 5% "bargaining" add on is more usual and that this surveyor is being unusually bearish.

What do you feel it's worth youselves? Maybe 230k ? .

The big problem is that if you drop to 200k, the buyer will be forced to pull out, or will have to renegotiate his offer on his new house, whose vendor will then have to renegotiuate his offer and the chain will break.

This survey problem, combined with the HIP disincentive and the freeze on sub prime lending is quite likely to bring some parts of the market to a complete halt after a while.I see estate agents and brokers are already closing their doors.

NeilQuinn

Looks like the Cyber Warriors have entered this thread now!

Reading the OP - I've had quite a few clients have their properties downvalued when applying for a remortgage......£10,000 in every instance. The surveyors would only budge if we could find comparables of houses that had actually SOLD in the last couple of months. Given the comparables you've provided, I'd have thought you had a good case for appeal. Unfortunately none of mine did, which made it impossible to argue the toss with the valuer.

Gambler

Just to update that both the surveyor and the estate agent both said a basic mortgage valuation would probably sign off the £250K.

Vendor wont budge on the price so we are now looking elsewhere. House is back on the market so I guess the agent and the vendor are hoping somebody will buy it without doing a survey. They must needs their bumps testing if that's the case as the house is c. 100 years old.