Monday, May 24, 2010
Borrowers demand chance to pay more
Daily Mail: Low valuations hold back housing market
Nationwide and Halifax say house prices are up 10% from a year ago. But mortgage borrowers say this good news isn't yet being reflected in the prices that valuers put on their homes, and that low valuations are jeopardising their chances of getting the mortgage they want. Experts say low valuations continue to plague the market and that victims may struggle to overturn them.
As there is no conciliation or independent ombudsman service for people unhappy with low valuations, the odds are you will have to accept the price your lender puts on your home. If it's so low that you don't qualify for one of its best-buy deals, you may need to look elsewhere.
Posted by little professor @ 05:25 PM (2060 views) Add Comment
13 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. magnaman said...
As an EA in the early 90's, my business partner looked after the professional side, mortgage valuations, Homebuyer and Structural surveys. I recall getting quotes for our Professional Indemnity which were not too bad but the excess each and every potential claim was horrendous. Three claims would have shut us down hence his cautious and thorough approach to valuation. Comparable evidence is key and at least three are required. "The Red Book" allows surveyors 10% either way (or did) so as I commented below the article, if there is comparable evidence of another identical property having sold recently but cheaper, there is no alternative but to use that as evidence, even if it turns out to have been a repo - simples!
2. taffee said...
I remember that scenario well.....as surveyors were put under pressure,so they hunted for real comparables to justify valuation which began a spiral down and were quite happy to down value on that basis
3. taffee said...
in fact the spiral bagan as surveyors actively looked for lowest valuation comparables to preotect themselves
its called a proper market!
4. icarus said...
Ah, I thought it must be some 'technical' factor holding back what otherwise would be a booming market. Damned valuers, party poopers.
5. str 2007 said...
Interesting to know the current rules.
Honestly, you couldn't make it up.
Surveyors undervaluing a house. Who said something's worth what you can get for it. Something is worth what you can borrow for it.
6. jack c said...
The next excuse that will be rolled out is the World Cup holding back the market - everyone sat infront of the LCD/Plasma or going to the pub to watch the footie instead of going house hunting.
The lenders are "downvaluing" and some brokers see it as deliberate in order that they secure a higher profit margin bearing in mind that you need a low loan to value to secure the best rate.
7. icarus said...
The CML says there's a 'funding gap'.
Valuers' valuations are 'too low'.
Houses are unaffordable.
Could there be a common answer to all three problems?
8. titaniccaptain said...
@Icarus 7.
"Could there be a common answer to all three problems?"...................Print money and give it out freely in the streets?
9. hpwatcher said...
Silly s*ds....they should be grateful for whatever they can get - everybody knows houses are around 40% overvalued.
10. rumble said...
"houses are around 40% overvalued."
-- They're valued at exactly what people value them to be. The long term average is a measurement of people's valuations, not of the intrinsic value of houses, not of construction costs, but of financial return, prestige, necessity, which are currently 40% more important to people. People's emotions are currently 40% out of control.
11. fallingbuzzard said...
I suppose that surveyors still remember the last time when house prices fell 20% inside a year. Just over a year ago. And I'm sure it couldn't possibly happen again.
12. Mark Wadsworth said...
LP: "Borrowers demand chance to pay more"
LOL.
On Planet Home-Owner-Ist, it is widely believed that you can run an economy along Enron lines, i.e. houses are worth what you want them to be and we can all become endelssly wealthy as long as people don't notice the emperor is not wearing any clothes.
13. Peter said...
I believe someone needs to do something about these non professional estate agents who 'Value' a property by 'guessing' how much they can get for it ?!? The basic rule is the higher the sale price the higher their percentage.
The BIG problem is they set the expectations of the seller so high, when a realistic offer is made, it's dismissed out of hand at the advice of the agent, even Cash offers - and as we all know Cash is king.
It would be nice to get rid of the 'Valuers' and replace them with 'Surveyors' but it will never happen!