Friday, Jul 24, 2009
Property professionals useless? Surely not
Guardian: How the surveying profession failed
"Valuers live by the maxim that the price of a property is the amount that someone is willing to pay. But this has turned out to be nonsense. In truth, the price of a property is the amount someone is willing to lend you to buy it. Value is not in the eye of the beholder, it's in the spreadsheet of a lender."
Posted by letthemfall @ 10:52 AM (489 views) Add Comment
8 Comments
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1. Phil S said...
How true.
I recently had a property valued and spoke to the valuer afterwards. I asked if the property had been priced £10k lower, would he have valued it £10k lower accordingly? The answer was yes!
2. Phil S said...
My surveyor told me they will try to match the selling price and will not value over!
3. mark wadsworth said...
Value is not in the eye of the beholder, it's in the spreadsheet of a lender.
The Guardian does talk a lot of sense about house prices.
4. cyril said...
to be more precise, it's the lesser of the two figures
(i.e. the lesser of the amount someone is prepared to pay and the amount the bank is prepared to lend)
5. Phil S said...
My surveyor said that he would not value a property above the selling price, but would try to match it!
6. Europeanbear said...
Should be easy. Look at the rental return in the local market per square foot. In a "normal" market rents would yield about 8% gross return. Rents rise (and fall) with demand, not speculation (which is why they have not gone up like house prices). So if the gross rental yield on a 4 bed semi in the area is 16,000 that puts the value at about 200,000. If then value at 90%, the banks will not go wrong. If the punter wants to pay more, (s)he has to find the extras from their own resources. easy really - surveyors just have to read the rental sections of the local newspapers.....
7. growler said...
"Value is not in the eye of the beholder, it's in the spreadsheet of a lender"
Is the best quote I've seen in ages.
And sums (no pun intended) it up perfectly
8. mark wadsworth said...
@ Cyril, it's not the lesser of two figures, it's the lower of two figures, but apart from that, good point.