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Surveyor undervaluation has lost us a sale

DesWalker
DesWalker Posts: 19
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edited 12 October 2017 at 3:43PM in House buying, renting & selling
Hi All,

We live on a private estate of twenty properties. It is a unique estate set in beautiful private grounds. All properties were originally bought from the builder in the first half of 2003 and the prices paid for all twenty properties are available on Rightmove.

In the last year three estate properties have been sold for prices of 130%, 134% and 139% of their 2003 values. So a fairly consistent pattern on which to value other properties on the estate including our property. This is really the only way of valuing these properties as there is absolutely nothing else comparable for miles and miles. It is a pretty unique setting.

Based on the above analysis we put our property on the market for 137% of the 2003 price and got a full asking price offer. We then negotiated a delayed completion to avoid going into rented and reduced the sale price to 135% of the 2003 price as a gesture of goodwill to the buyer.

The mortgage company of the buyer had a home buyers report and valuation and it never entered out head that the property was mispriced as the above analysis shows.

A young surveyor came from outside the area and seemed to take absolutely no account of the unique setting. He produced a valuation of 114% of the 2003 price (equals £245k equals £45k less than the agreed £290k purchase price) and the buyer has walked away. We are very very upset.

I firmly believe he has valued it based on houses with the same number of bedrooms, bathrooms, house type etc within a particular radius of us but has completely ignored the unique estate we are on.

I sent the three examples of property sales which share our unique environment (detailed above) to the buyer as evidence of the mispricing and proof that he had in fact agreed a fair price but the damage had been done. Remember this buyer was happy to pay £295k without a second viewing but got spooked when the valuation came in at £245k.

So, my question. Is there anything I can do ? Can I complain to somebody ? How can it be right that a young man like this can put us into so much turmoil without being accountable ? My wife is in bits as our future is on hold. Please help.

And please, no answers from the “your house is clearly overvalued brigade”. My sale price was bang in line with the three properties sold in the last year one of which (the 134% one) is attached to me next door !! Their’s is worth 134% of the 2003 price but ours is only worth 114% !! And to rub salt into the wound, next door was a wreck whereas our house is immaculate.

Any help very greatly appreciated.

Des
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Comments

  • Browntoa
    Browntoa Posts: 49,281
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    It's "current valuation" not "last year's prices" that matter
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  • Doozergirl
    Doozergirl Posts: 33,763
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    It was your buyer's valuation , not yours. If they've chosen to walk away, it's too late already. You were on the right track for providing examples but it's for them to do, not you, althought you can obviously show them.

    They could have gone to another company, but it's their prerogative to walk too.

    I'm sure it won't happen again. Full asking price offers don't happen by fluke, generally. :)
    Everything that is supposed to be in heaven is already here on earth.
  • Grenage
    Grenage Posts: 2,897
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    DesWalker wrote: »
    So, my question. Is there anything I can do ? Can I complain to somebody ? How can it be right that a young man like this can put us into so much turmoil without being accountable ? My wife is in bits as our future is on hold.

    As the fellow didn't work for you, there's not much you can do. I would simply put it back on the market and try again.
  • Comms69
    Comms69 Posts: 14,229
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    The property has grown only 39% in 14 years? - hmmm perhaps it's not as unique as you think?


    Anyway to answer your actual question: Is there anything I can do ? Can I complain to somebody ? How can it be right that a young man like this can put us into so much turmoil without being accountable ? My wife is in bits as our future is on hold. Please help.

    no, absolutely not. and it's for the following reason: You had no contract with him or his employer


    The fact that you've used 'young' three times suggests you are actually quite a difficult person. The chap is in all likelihood a qualified surveyor, and certainly better qualified than you to judge the value of a property. He has no interest in undervaluing, you have an interest in over valuing....


    The fact is, he is accountable, just not to you. Why don't YOU pay for a surveyor to value your home?!
  • davidmcn
    davidmcn Posts: 23,596
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    It's entirely up to your buyer whom they seek professional advice from during their purchase and whether they choose to pay attention to their advisors' opinions or not.
  • Comms69
    Comms69 Posts: 14,229
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    Infact I'm so surprised I just checked inflation rate for 2003-2017:


    UK Inflation Rate, 2003-2017 (£100)
    According to the Office for National Statistics, the pound experienced an average inflation rate of 2.89% per year. Prices in 2017 are 49.0% higher than prices in 2003.
    In other words, £100 in the year 2003 is equivalent to £148.96 in 2017, a difference of £48.96 over 14 years.




    Are you seriously suggesting your house has actually lost value?
  • Thanks for the replies.

    For clarification, the 139% sale was in July, the 134% (next door) was in March and the 130% was last October, so there is actually an upward trajectory.

    Yet mine is valued at 114% last month. I don’t think this can be attributed to “current prices vs last year’s prices” ??

    I can’t believe that I have no recourse here, and am just expected to shut up and start again. This kid has not done his job and it may well have lond term repercussions for us.

    At the very least I intend to complain to RICS, but I wonder if I have legal recourse ...
  • Comms69
    Comms69 Posts: 14,229
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    DesWalker wrote: »
    Thanks for the replies.

    For clarification, the 139% sale was in July, the 134% (next door) was in March and the 130% was last October, so there is actually an upward trajectory.

    Yet mine is valued at 114% last month. I don’t think this can be attributed to “current prices vs last year’s prices” ??

    I can’t believe that I have no recourse here, and am just expected to shut up and start again. - exactly that. This kid has not done his job and it may well have lond term repercussions for us. - Yes he has, he has advised HIS clients according to his expertise!

    At the very least I intend to complain to RICS, but I wonder if I have legal recourse ...


    Oh dear lord almighty, NO! you cant sue the guy. (well you can try, but you'll definitely lose)


    What's your profession that you seem to think you know more than he does?
  • Natbag
    Natbag Posts: 1,563
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    Was it Countrywide by any chance? If so, Google them, they do it to everyone.
    This happened to us recently. They valued our house down by £10k putting it at the same price we paid for it 9 years ago despite renovations throughout, which was ridiculous when two identical properties next door and next door but one that hadn't had the renovations had both sold for the same agreed price as ours within the last year. I've heard they will look at all similar properties within an x-mile radius, so although you might live on a lovely private quiet new estate, they will take into account properties sold on nearby not as lovely estates.
    Anyway, the lender refused to lend, our buyers refused to change lender and get a new valuation, and we couldn't knock £10k off the asking price so the house went back on the market. We didn't get as much interest as quickly, so reduced our asking price by £5k after our vendor met us half way with a reduction, and our next buyers' valuation with Colleys went through fine. I dare say if Colleys had valued the first time we wouldn't have had any problems.
    Property buying/selling timeline - currently into week 21
    04/12/20: Both properties listed for sale
    11/01/21: Offers accepted on both sales & on our joint purchase
    25/01/21: Identity checks completed, solicitors instructed
    27/01/21: Purchase survey & valuation complete, mortgage offer received 
    05/02/21: Reduction agreed on partner's sale (under-valuation) & on purchase. Mortgage offer amended
    08/02/21: Buyers pack returned to solicitor - sellers packs already returned
    26/02/21: Partner's sale contract signed
    10/03/21: Purchase searches all back
    16/03/21: My sale contract signed
    28/03/21: Purchase enquiries satisfied, Title Report & contracts issued, contracts signed & returned
    11/05/21: Still waiting on final enquiry in the adjoining chain to be resolved. Consent to break the chain granted, instruction to move to exchange given.
    17/05/21: All parties agreed to June 3rd for completion
    27/05/21: Exchanged on my sale only
    28/05/21: ALL EXCHANGED!
    03/06/21: Completion
  • Comms,

    Thanks for checking the inflation rates.

    Yes we live in a deeply unfashionable part of the country but in a beautiful setting that elsewhere in the country would have skyrocketed.

    The numbers are completely accurate. I have a maths PhD so you can be sure that what I am saying is true. We bought in mid 2003 for 215k, asked 295k, received an offer of that price, chose to delay completion for four months so reduced the agreed price to 290k. The valuation came in at 245k, just 30k more than we paid for it !! Gobsmacked and very distressed ...
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