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How Can Surveys Differ So Much

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Hi,

We are selling our house and so is my mother-in-law with the view to buy somewhere bigger togethr as sh's 82 and now on her own.

Both houses have had offers accepted.

My Mother-in-law's purchaser made an offer of £340k and eventually had a survey which valued the propery at 250k and so he pulled out of the sale - the surveyor came up with numerous issues, the main one being the roof needed replacing, total costs cc £30-£50k.

We've commissioned our own survey which valued the property at £315, this is a massive difference.

We also believe the purchaser's surveyor was a friend of the buyer and purposely under valued the propery as a means of having an excuse to pull out of the deal within 3 weeks of completion.

What's the point of a survey if it can vary so much ?

If we dont get a new buyer quickly then our sale will fall through and the purchase of the new property so it's a few thou down the pan, all because of what looks like a dodgy survey ?

Any comments ?

cheerS

Steve

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If its your money then you can spend it as you want.

If it's someone else's money it needs to be spent carefully.

The credit crunch is a direct result of people being able to spend other people's money without caution.

Without this being corrected we'd be even more screwed. (If that's actually possible now, and that we've gone beyond any point of return)

What did MIL pay for it?

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No-one needs an excuse to pull out, even on the day. If the purchaser was saying 'it's only worth £250k so that's what i want it for' then that would give your view more credence.

If you can find anyone to pay £315k then that's what it is worth.

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In the 1970s the University of Alabama conducted research into the length of the average *****.

There were free measurements in town halls but it was possible to go to be measured privately for a fee.

Those measured privately were, on average, better endowed by some two inches.

p-o-p

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Hi,

We are selling our house and so is my mother-in-law with the view to buy somewhere bigger togethr as sh's 82 and now on her own.

Both houses have had offers accepted.

My Mother-in-law's purchaser made an offer of £340k and eventually had a survey which valued the propery at 250k and so he pulled out of the sale - the surveyor came up with numerous issues, the main one being the roof needed replacing, total costs cc £30-£50k.

We've commissioned our own survey which valued the property at £315, this is a massive difference.

We also believe the purchaser's surveyor was a friend of the buyer and purposely under valued the propery as a means of having an excuse to pull out of the deal within 3 weeks of completion.

What's the point of a survey if it can vary so much ?

If we dont get a new buyer quickly then our sale will fall through and the purchase of the new property so it's a few thou down the pan, all because of what looks like a dodgy survey ?

Any comments ?

cheerS

Steve

Are you comparing like with like - i.e. did you have the same survey as the purchaser. If you did your survey identify the same faults as the purchaser's survey? If your survey identified remedial work e.g. roofing then I'd suggest getting a couple of reputable builders to give you estimates for the work - that way you can sensibly identify what costs are likely to be faced by potential purchaser.

In most cases it's better to re-negotiate the price based around the potential costs of the work - if you do the work yourself you risk being out of pocket without necessarily attracting a buyer, whereas if you re-negotiate the price you definitely have a sale and any repair hassles are passed on to the buyer.

We are now in a property recession and inflated prices are a thing of the past. The person buying this property has a double risk - the cost and hassle associated with the work identified in their survey, plus the risk of further price falls. Given the circumstances and the likelihood of a bank or building society imposing a retention on the mortgage I can well understand that people are taking a long, hard look at all the faults a property may have before committing to buy.

The message is realism is the order of the day - over-inflated house prices with faults will not sell as people are sensibly costing-in the price of repair and maintenance.

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Hi,

We are selling our house and so is my mother-in-law with the view to buy somewhere bigger togethr as sh's 82 and now on her own.

Both houses have had offers accepted.

My Mother-in-law's purchaser made an offer of £340k and eventually had a survey which valued the propery at 250k and so he pulled out of the sale - the surveyor came up with numerous issues, the main one being the roof needed replacing, total costs cc £30-£50k.

We've commissioned our own survey which valued the property at £315, this is a massive difference.

We also believe the purchaser's surveyor was a friend of the buyer and purposely under valued the propery as a means of having an excuse to pull out of the deal within 3 weeks of completion.

What's the point of a survey if it can vary so much ?

If we dont get a new buyer quickly then our sale will fall through and the purchase of the new property so it's a few thou down the pan, all because of what looks like a dodgy survey ?

Any comments ?

cheerS

Steve

I have been led to believe that most valuations now are coming in 25 - 30% under peak as :

1. surveyors can be sued I believe if they get in wrong by 20%

2. because property values have fallen and indeed need to fall in order to come back in line with sustainable sensible lending levels

3. lenders have enough borrowers in negative equity

I guess it is less likely that you would sue the valuer if you get 20% more than the property is worth but the lender might!

This is the problem with todays market, chains are NOT completing, First Rung article today said less than one property being sold per agent.

Try these links:

Realistic Valuations Leading to Chains Breaking

If the valuation placed on the property by the lender is lower than the agreed price, the lender may choose to offer a smaller mortgage, leaving the buyer without enough money to cover the asking price and causing the deal to collapse.

Lenders may also check the value of a property when it is being remortgaged to ensure they are not lending more than it is worth.

If a property is repossessed and the lender is forced to sell below its purchase price, it can sue the original valuer for negligence.

This occurred regularly during the housing slump of the early 1990s and, the NAEA said, as a result of the uncertainty in today's market, valuers are once again "frightened".

Chief executive Peter Bolton King told the BBC: "They are perhaps worried about their professional indemnity insurance - they are thinking back to the 90s when surveyors were being sued by lenders for allegedly not getting the valuations right.

Bloo Loo quote: Sybil, I do not think this mortgage collapse after exchange is a major contributor to broken chains.

What is, and just looking at the number of SOLD SSTC on the 3 mile journey to the bank, is that anyone can walk into an EA, go look at a property and make an offer. Its then SSTC.

great, the seller may already have made an offer, but couldnt move because he needs to sell, now hes happy and confirms with his target he wants to go ahead, and its going to be soon.

this guy, however hasnt made an offer yet cos he wasnt sure he could sell. Well, now he definitely has sold, he goes and makes an offer on his target.

and so on.

to break this chain, it only needs ONE of the participants to have been a little optimistic on his mortgage requirement. He is simply rejected for his 6 times salary IO mortgage he needs ( werent like that last time he bought)

I must pass 400 houses to see 25 SSTC in a town of 50,000 houses. thats roughly 3000 SSTC in my town.

say it takes 3 months to complete... thats 1000SSTC per month...with 38,000 approvals, that only leaves 37,000 for the rest of the country, and there are way more than 37 towns larger than Colchester.

all guesswork, but the number of SSTC is quite incredible.

More on Realistic Valuations

Rightmove's latest HPI said they were advising sellers to accept a lower cash offer rather than wait for someone who:

a. needs a mortgage

b. needs a valuation anywhere near the asking price on RM!!

See my comment Here with regards the latest RM HPI

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Would have added to my post but to go back in and edit alters format and its a real pain having to sort it out, meant to ask

HOW MUCH UNDER PEAK VALUE, THAT IS 2007 , WAS THE OFFER ?

I am very aware when I look on properties on RM and when I consider costs generally of the costs of running a home these days.

A new roof is a huge expense yet so many look like they need doing.

Double glazing - awful expense as is a new central heating boiler.

I was thinking about this this morning, what would be the cost over the next 50 years for a young couple buying today to maintain their home? Must add up to another £5000 a year at least (if they put the money buy for necessary large repairs etc over the years) on top of their mortgage surely .

Edited by Sybil13

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Hi,

We are selling our house and so is my mother-in-law with the view to buy somewhere bigger togethr as sh's 82 and now on her own.

Both houses have had offers accepted.

My Mother-in-law's purchaser made an offer of £340k and eventually had a survey which valued the propery at 250k and so he pulled out of the sale - the surveyor came up with numerous issues, the main one being the roof needed replacing, total costs cc £30-£50k.

We've commissioned our own survey which valued the property at £315, this is a massive difference.

We also believe the purchaser's surveyor was a friend of the buyer and purposely under valued the propery as a means of having an excuse to pull out of the deal within 3 weeks of completion.

What's the point of a survey if it can vary so much ?

If we dont get a new buyer quickly then our sale will fall through and the purchase of the new property so it's a few thou down the pan, all because of what looks like a dodgy survey ?

Any comments ?

cheerS

Steve

how much is a share worth?

how much will gold be worth i 6 months? opinions will vary widely.

in all honesty if someone is telling you the house is worth 250k does that not set any alarm bells ringing?

Edited by mfp123

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Alternatively do your own measuring. I did and I found i'm actually 4" better endowed.

Was that figure 'inflation adjusted' or not?

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