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ljimen

Valuation

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Hi,

We recently made an offer for a house in south London. The house was priced at £435,000 and after almost 2 months of negotiations we brought it down to £385,000 (including furniture). The survey has just come through and estimated the value of the property at £365,000.

The agent claims that this is because the surveyor used for comparison houses that were not in the same condition or of the same size and without us asking for it, he has sent additional information to the surveyor. We had ask for a Homebuyers report, so we assume that although the valuation will be partially based on sold prices of other properties, it will also take into account the details of the house and any problems it might have and is therefore accurate.

Our fear is that the estate agent might pressurize the surveyor to improve the valuation and we will end up paying over the odds for the house. We have checked prices in the area and whereas a few months ago we couldn’t find too many houses for sale, there seem to be quite a few of them now. The prices vary , but for similar houses the asking price rages between 375,000 and 400,000.

So, to what degree can surveyors be influenced by estate agents? and, if the valuation goes up, should we accept it or assume that the first valuation was the correct one? Do we have the right to ask the agent for any "evidence" he submitted to the surveyor?

Thanks

L

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Surveyors SHOULD be independent. If they come back with a higher valuation, make sure you get fine details on why this is the case.

The sellers's asking price was obviously absurd and even if you pull out, they'll likely have exactly the same issue with any future buyers. Typically buyer and seller will negotiate half way between valuation and agreed, but suggest you continue to check the market for a better value property before overpaying (but you know that already I'm quite sure :rolleyes: )

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Thanks Catmandu for the advise. If they don't come down to the valuation price, I will just continue to look for houses, I will loose the cost of the homebuyers report, but better than overpaying for a propety! I have also called the surveyor and asked them to provide me with the original report plus any evidence from the estate agent.

Jonboy2010, the mortgage is arranged through Alexandre Hall, not throught the Estate Agent, but the agent got the details of the surveyor when they went to do the survey. In my opinon they shouldnt have contacted the surveyor with additional evidence directly and without letting me know, but it might be common practice.

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I would say you have had a lucky escape. If the valuation was a good 20K lower then accept that may be what its worth and walk away if they want more. Its a buyers market out there now and that's a lot of money to play about with.

3 months down the line when the winter prices come you will be glad you looked about a bit before buying

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I would say you have had a lucky escape. If the valuation was a good 20K lower then accept that may be what its worth and walk away if they want more. Its a buyers market out there now and that's a lot of money to play about with.

3 months down the line when the winter prices come you will be glad you looked about a bit before buying

Agreed.

Wait untill early next year and then offer £340,000............ or maybe less!!

Edited by SavingBear

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  • 140 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
      • up 2.5%
      • up 5%



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