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crashdesk2

Surveyor Valuation

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Hi,

A quick question about a surveyor valuation. What exactly does this mean? Is it the value of the property in the current climate or is this the value of the property no matter what the housing market is like. eg. If the house I am buying now was valued a year and a half ago would it still have been valued at what it is now?

Many thanks,

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This was a pet grip of mine.

In the not too distant past the valuation of a property was a sacred thing. The idea was that apart from slight difference in opinion the valuation for a property should be very similar, no mater who was sent to value it.

This was governed by Ch 17 of the RICS 'Red Book' which stated that the property was to be marked at 'Open market Value'.

From distant memory this was defined as the:

value agreed between a willing seller and a willing buyer (therefore excluding fire sale), after suitable marketing and the availability of credit.

Since the credit crunch various lending bodies have decided to tinker with this (Which I think is wrong). Some now include firesale and some actually exclude new-build, which is bizarre.

But to answer your question it should still come up with the figure that the house should fetch today. The bit about the availability of credit has been largely dropped.

I imagine the price would be similar to that 12 months ago (perhaps a slight drop) but it would be down from the prices 18 months ago.

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Was that the value 18 mths ago? Therefore, if your estimate on build cost is correct the site had a value of £55k at that time. Any change in the valuation since then would come off the land value as the cost to build hasn't dropped that much.

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Impossible to say. Just got that information 1 month ago. Just curious to know how valuations are worked out. So I'm corect in saying that the Land is part of the valuation? The property is in East Belfast and just wondering, that if the prices continue to some down will the valuation be similar in, lets say 5 years time? I got £20,000 off the asking price so think I have done quite well.

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Impossible to say. Just got that information 1 month ago. Just curious to know how valuations are worked out. So I'm corect in saying that the Land is part of the valuation? The property is in East Belfast and just wondering, that if the prices continue to some down will the valuation be similar in, lets say 5 years time? I got £20,000 off the asking price so think I have done quite well.

The asking price may have been more than £20k above the true value(whatever that is) so don't get too focused on it.

The valuation is basically what the property should expect to obtain on the open market. It is based mostly on nearby examples and then taking into account the size, condition and location of yours in relation to it. The valuation is the price you should be paying, if you know what you mean.

The valuations in the future will reflect changes in selling prices between now and then. In five years it may he higher or lower than its current level depending on how it and similar houses in the area are selling at that time.

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Okay. That's good to know. Many thanks! I am just wondering how many people get to buy a house below the valuation after a survey. I am obviously glad not to be paying more than the current market value.

Edited by crashdesk2

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Impossible to say. Just got that information 1 month ago. Just curious to know how valuations are worked out. So I'm corect in saying that the Land is part of the valuation? The property is in East Belfast and just wondering, that if the prices continue to some down will the valuation be similar in, lets say 5 years time? I got £20,000 off the asking price so think I have done quite well.

im looking for a small prperty in east belfast. You say you got them down £20,000, what % was this, or better still if you dont mind me asking "how much did you pay"

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im looking for a small prperty in east belfast. You say you got them down £20,000, what % was this, or better still if you dont mind me asking "how much did you pay"

Hi. It was 12% less than asking price. You have to bear in mind that the EA didn't drop the price for over a year so the I new the price should be much lower. I didn't need to do any work to the property and moved straight in. I am finding that similar houses in my area are still being sold for the original price which is ridiculous. Some other EAs are lowering the prices to what I paid now. I knew this would happen and the prices will fall further but I really like the house and have no regrets...yet :-)

C

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
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