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ClaireMC
Posts: 53 Forumite
Hi
Looking for some advice based on experience. Just looking to remortgage my house, was going to sell it but as the market is sluggish and rather unpredictable have decided not to.
I know Estate Agents over value to get business but I was quoted an average of £725K (700-750 from 5 EAs)- more realistically I would think it would go for £675-700K. However the Santander valuation has just come in at £575K!!! A house a few doors down which is 50% smaller than my house has gone for £605K just recently and another similar to that but a bit smaller for £550K. Our row of houses is very unusual in the area and they sell rarely so it is hard to look at past sales but I think the surveyor has not been able to compare them properly.
As you can imagine shocked and a bit upset. Do Santander accept appeals and is it worth appealing - what I have seen (though very old) seems to indicate that it is not worth appealing?
Thanks for any insight that you can offer.
Claire
Looking for some advice based on experience. Just looking to remortgage my house, was going to sell it but as the market is sluggish and rather unpredictable have decided not to.
I know Estate Agents over value to get business but I was quoted an average of £725K (700-750 from 5 EAs)- more realistically I would think it would go for £675-700K. However the Santander valuation has just come in at £575K!!! A house a few doors down which is 50% smaller than my house has gone for £605K just recently and another similar to that but a bit smaller for £550K. Our row of houses is very unusual in the area and they sell rarely so it is hard to look at past sales but I think the surveyor has not been able to compare them properly.
As you can imagine shocked and a bit upset. Do Santander accept appeals and is it worth appealing - what I have seen (though very old) seems to indicate that it is not worth appealing?
Thanks for any insight that you can offer.
Claire
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Comments
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Don't forget that any house purchase is made up of deposit + mortgage, whereas you're only looking at the 'mortgage' part of that amount, so it'll naturally be less than the £725k total which the EAs are touting.
However, given you're now also essentially going through the same process as your would-be buyers were when you were selling, you're probably now finding out why the market is "sluggish and rather unpredictable"...0 -
''Homeowner Thinks Home is Worth a Lot More Than it Actually is Shocker.''0
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''Homeowner Thinks Home is Worth a Lot More Than it Actually is Shocker.''
I'm looking for insight and guidance not trolling! There is no need for your comment is there? I never understand why people feel the need to comment like this. Does it make you feel better? I am sure that you would be perfectly nice to my face but there is something about been invisible behind a computer that brings out the viciousness in some people!
I KNOW valuations v EA are very different but when a house smaller then mine - MUCH smaller, has just sold for far more than my valuation, then there is a discrepancy here! In this post I was asking regarding the value of appealing from people on here who may be expert or in a similar situation.0 -
Did you pay for a valuation?
We have recently been sorting a remortgage for a property and the valuation for the new mortgage has come in very low, when two similar properties have recently sold for a lot more.
We are told that the lender has done a paper valuation only (eg comparing price paid x years ago with regional price index) If we want a more accurate valuation done we would need to pay the fee of £395 or something. It hasn't been an issue for us as it's a low LTV loan but could be problematic in other circumstances.
Could this be the same sort of thing?0 -
Does the valuation affect you other than you disagree with it?
Does it push you into a different LTV bracket, and change the rate available to you?
If not, it's annoying that the surveyor has potentially been unable to put the valuation on the property that you feel is worth - but in the grand scheme of things it's only an annoyance.
Perhaps it's only with that in a sluggish and unpredictable market?
But ultimately, because you're not selling, the value of your house matters little. It's only what it's worth when you come to sell that is when it's important! (Unless the valuation puts your interest rate up by 1% or so and your borrowing a lot of money)0 -
I am looking to raise money as a deposit on another house (we have moved counties and are renting at the moment). I would much prefer to sell the existing house but due to the market we are going to rent it out instead (another one of those accidental landlords unfortunately). We have seen a house put an offer in as we had the AIP but this valuation scuppers the whole plan!!0
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Did you pay for a valuation?
We have recently been sorting a remortgage for a property and the valuation for the new mortgage has come in very low, when two similar properties have recently sold for a lot more.
We are told that the lender has done a paper valuation only (eg comparing price paid x years ago with regional price index) If we want a more accurate valuation done we would need to pay the fee of £395 or something. It hasn't been an issue for us as it's a low LTV loan but could be problematic in other circumstances.
Could this be the same sort of thing?
No it was Santander who arranged it. I am going to call them in the morning but the broker says chances of an appeal are slim as they want evidence of identical properties in a 1 mile radius sold in the last 3 months and our row of houses is utterly unique which in this instance is a pain! £50K less I can understand even £75K in this climate but £150K is crazy particularity when houses so much smaller have 'just' sold!0 -
Do Santander accept appeals and is it worth appealing - what I have seen (though very old) seems to indicate that it is not worth appealing?
Remortgage valuations always seem to be low.
You can try 'appealing', but they very rarely succeed. That would essentially involve the valuer saying to Santander - Oops! Sorry I made a mistake with my valuation!
Santander are unlikely to continue giving business to valuers who make mistakes - in case their future mistakes go the 'wrong way'.
So the valuer is likely to defend their valuation 'to the death'.
FWIW, when I got a remortgage valuation, I first got some written valuations from local estate agents. I gave copies to the valuer when they visited.
I'm pretty sure that the valuer just looked at the EA valuations, and knocked off 10% as a safety margin.0 -
The valuer is required to report their opinion of the current 'market value' - the estimated amount for which a contract for sale of the property would exchange at on the date of valuation, assuming a willing buyer and seller and some other factors. It should therefore fairly reflect current market conditions and any other local value-significant factors.
Valuing an unusual property in an area with no local direct comparables can be difficult for a valuer, particularly if they are not experienced in the local area (perhaps having traveled for some distance from base!) and a good local estate agent will often have a more realistic view of the price which should be obtainable. You also appear to have a broad band consensus (assumed recent) from five agents.
Lenders will very often consider a valuation challenge, but you will need to provide details of the recent sales you refer to, including full address and at least agents' details. As it shouldn't cost you anything to do this, it's worth a shot at least.Retired surveyor
Remember - your surveyor may not be as experienced as you think .........
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