Jump to content
House Price Crash Forum
Sign in to follow this  
eleagill

How To Contest A Valuation

Recommended Posts

Hello

Does anyone have any successful experience of contesting a surveyor's valuation in the current market?

We bought a two bed plus study, 1000ft2 flat two years ago for £355k. We are currently remortgaging and the bank sent a surveyor who spent five minutes and valued it at £310K. We weren't expecting it to go up or anything, but didn't think it would drop so much. Its changed our LTV meaning we can't get the mortgage product we were hoping for.

So we asked three local estate agents to come and value it for us, which they did this week. They saw a likely sale price of £350-375k and suggested putting it on the market at an average of £384k. A two bed flat a couple of doors down sold for £355k two weeks ago and its 300ft2 smaller than ours.

Is there anything we can do? Is it possible to contest this? Are we allowed to see the valuation report and whether the surveyor used any comparables? I'm sure everyone says this but we are in a really popular area of London, where there is high demand because of good schools etc.

Thanks very much.

E

Share this post


Link to post
Share on other sites
You bought two years ago and house prices have crashed 25%. The surveyor overvalued your house.

If that's the case then why did the flat two doors down sell at 355 a fortnight ago - and its smaller than ours.

Thanks though.

Share this post


Link to post
Share on other sites
If that's the case then why did the flat two doors down sell at 355 a fortnight ago - and its smaller than ours.

Thanks though.

Are you sure it actually sold? A lot of properties are coming back onto the market after apparently being sold because the purchaser can't get a mortgage for it.

Share this post


Link to post
Share on other sites
Hello

Does anyone have any successful experience of contesting a surveyor's valuation in the current market?

We bought a two bed plus study, 1000ft2 flat two years ago for £355k. We are currently remortgaging and the bank sent a surveyor who spent five minutes and valued it at £310K. We weren't expecting it to go up or anything, but didn't think it would drop so much. Its changed our LTV meaning we can't get the mortgage product we were hoping for.

So we asked three local estate agents to come and value it for us, which they did this week. They saw a likely sale price of £350-375k and suggested putting it on the market at an average of £384k. A two bed flat a couple of doors down sold for £355k two weeks ago and its 300ft2 smaller than ours.

Is there anything we can do? Is it possible to contest this? Are we allowed to see the valuation report and whether the surveyor used any comparables? I'm sure everyone says this but we are in a really popular area of London, where there is high demand because of good schools etc.

Thanks very much.

E

Are you sure you paid a "fair price" initially. Also surveyors valuing for remortgage or MEW (god forbid) will always come in lower than an EA especially at the moment. Did you mention to the EAs that it had been valued at 310 by a surveyor ?

Share this post


Link to post
Share on other sites

Yours is a good news story for many/most on this forum.

If you managed to find a surveyor that valued in your favour then it will more than likely come unstuck if andwhen the buyers surveyor does his valuation.

Get a second opinion but do not use an estate agent for a true valuation.

Pay for a surveyor

You bought at the absolute peak and as someone said prices have fallen a long way in the last two years. Price drop sounds about right to me, Actually could have been a lot worse.

G`luck

Share this post


Link to post
Share on other sites
Yours is a good news story for many/most on this forum.

If you managed to find a surveyor that valued in your favour then it will more than likely come unstuck if andwhen the buyers surveyor does his valuation.

Get a second opinion but do not use an estate agent for a true valuation.

Pay for a surveyor

You bought at the absolute peak and as someone said prices have fallen a long way in the last two years. Price drop sounds about right to me, Actually could have been a lot worse.

G`luck

Thanks. Yes the next door property has sold, we spoke to the owners. And a similar property in the street behind for 370. Our bank told us to find three comparables and then they can review it - at least we have one. We also stressed to the EAs we wanted very realistic valuations - they said that because there is little property coming onto the Crouch End market in London, but there is quite a bit of demand, that the valuations were fair.

Share this post


Link to post
Share on other sites

Basically you can't trust anything that Estate Agents say - their basic modus operandi is to tell lies. Currently Estate Agents are having a very bad time because transactions (the number of properties they are managing to sell remains at historically very low levels) remain dreadfully low and they are having difficulty getting new properties on their books. So, Estate Agents are vastly over-valuing properties in order to try and get potential vemndors to give them their business. Every Estate Agency across the UK has got a large number of properties they just can't sell because they have set the asking price of these properties way too high for the market. Prices have fallen by over 20% from the peak so far and still remain higher over the long term trend for house prices than they were at the peak of the last house price boom in 1989. Property prices still have a long way to fall, and they will fall back to the long term trend (and probably below that for some period of time). The surveyors valuation is probably pretty good and the Estate Agents valuations are more than likely way over the top.

You probably need to find out if your mortgage lender would accept a challenge to their surveyors valuation - you don't want to waste time and money getting a second opinion when they wil just ignore it. However, if they say they are opened to being challenged by a second opinion then you need to decide whether it is worth trying to do this.

Share this post


Link to post
Share on other sites
So we asked three local estate agents to come and value it for us, which they did this week. They saw a likely sale price of £350-375k and suggested putting it on the market at an average of £384k. A two bed flat a couple of doors down sold for £355k two weeks ago and its 300ft2 smaller than ours.

I dont think prices have fallen like people on here think they have. Maybe the odd new build flat in Leeds, and some forced sales due to divorce.

Im not turning into a bull, I want and think prices should fall. But that does not make it so sadly.

Share this post


Link to post
Share on other sites
Thanks. Yes the next door property has sold, we spoke to the owners.

Has the sale completed yet? You said that it sold two weeks ago, so probably not.

The point being made was that someone making an offer that the vendor accepts doesn't count as a sale, particularly under current market conditions. All kinds of things could prevent a sale from completing: the buyer could pull out; the buyer could find they can't get the mortgage that they thought they could based on their agreement in principle on any property due to mortgage rationing; the buyer could find out that they can't get the mortgage that they thought they could on this particular property because the mortgage provider thinks that they're over-paying; any of the above could happen somewhere else in the chain.

Until contracts have been exchanged, the property hasn't sold. A lot of agreed sales are falling through at the moment.

Local conditions vary, but unless you've improved your property it's very likely that its value has fallen. You can't use estate agents' suggested initial asking prices as valuations (remember that the average initial asking price is over £225k, whereas the average sale price is less than £153k).

The surveyor is suggesting that your house has lost 13% of its value. That may seem like a lot, but he still has you doing better than average.

Share this post


Link to post
Share on other sites

Round me, SE1, I doubt prices have fallen at all.

No way have prices in nice parts of London dropped by 25%.

Re your neighbour, has it been exchanged? or completed? or just under offer?

Talk to the agent that sold that property. He will require comparables for his mortgage valuer. It is in his interest to keep prices up. He will let you have them. Look at price per square foot - it's a crude but good starting point for valuations.

And... how do surveyors value properties? They ask estate agents how much they think it is worth.

Edited by Telometer

Share this post


Link to post
Share on other sites
Hello

Does anyone have any successful experience of contesting a surveyor's valuation in the current market?

We bought a two bed plus study, 1000ft2 flat two years ago for £355k. We are currently remortgaging and the bank sent a surveyor who spent five minutes and valued it at £310K. We weren't expecting it to go up or anything, but didn't think it would drop so much. Its changed our LTV meaning we can't get the mortgage product we were hoping for.

So we asked three local estate agents to come and value it for us, which they did this week. They saw a likely sale price of £350-375k and suggested putting it on the market at an average of £384k. A two bed flat a couple of doors down sold for £355k two weeks ago and its 300ft2 smaller than ours.

Is there anything we can do? Is it possible to contest this? Are we allowed to see the valuation report and whether the surveyor used any comparables? I'm sure everyone says this but we are in a really popular area of London, where there is high demand because of good schools etc.

Thanks very much.

E

UPDATE: In response to my above post - it is possible to contest the valuation. We provided four comparables of local properties that sold recently and also provide the EA valuations. The surveyor agreed to add 50k to his original valuation. Success!

Share this post


Link to post
Share on other sites
Hello

Does anyone have any successful experience of contesting a surveyor's valuation in the current market?

We bought a two bed plus study, 1000ft2 flat two years ago for £355k. We are currently remortgaging and the bank sent a surveyor who spent five minutes and valued it at £310K. We weren't expecting it to go up or anything, but didn't think it would drop so much. Its changed our LTV meaning we can't get the mortgage product we were hoping for.

So we asked three local estate agents to come and value it for us, which they did this week. They saw a likely sale price of £350-375k and suggested putting it on the market at an average of £384k. A two bed flat a couple of doors down sold for £355k two weeks ago and its 300ft2 smaller than ours.

Is there anything we can do? Is it possible to contest this? Are we allowed to see the valuation report and whether the surveyor used any comparables? I'm sure everyone says this but we are in a really popular area of London, where there is high demand because of good schools etc.

Thanks very much.

E

I think its all about gathering evidence try an Automated Valuation they are based on a lot of tools that a surveyor would use they cost about £20.00. Second opinions are powerful if you are confident that the first person has got it wrong

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   295 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.