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Should Liz Sue The Valuer For Overvaluation?

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http://www.periodproperty.co.uk/uncle072004.shtml

SUBJECT: House prices appear to increase but ours falls by £43,000 in 12 months

FROM: Elizabeth Grieve (Cambridge)

Who do we pursue for wrong valuation? We have lived in our home for a year and now have to move due to work. It was priced at £350,000 and we paid £343,000. We had it valued by 3 local agents this week and they all valued it at around £300,000. We have done nothing to the property except paint some interior walls and doors, and are shocked at the difference in prices. We have a mortgage, and had a Homebuyer's report from the surveyor appointed by the bank. He valued it at £350,000. Please help!

Elizabeth Grieve

No one. A warning should be placed on houses much the same as for investments - PRICES CAN GO DOWN AS WELL AS UP.

Do not believe everything you read in the papers, not all areas have benefited from rising house prices. One year ago a fair market value for your house could well have been £350,000 and unless the surveyor had good reason to doubt that this was reasonable he/she is nowadays likely to go along with the agreed price unless it is clearly out of line with market values for the area, or unless there is a defect that has not already been reflected in the price being paid.

There may have been changes in your district that have affected house prices. For example, the government's announcement regarding Stansted has resulted in some areas nearby suffering a downturn in prices. Speak to the agents and ask them if prices have gone down or something happened to affect the price of your house. You mention that you have decorated, have you painted it bright pink with green spots? If so, this could have a detrimental affect on price. If you find that you really did pay above the market value one year ago you could try suing the mortgage company and/or surveyor. However, you admit to paying less than the valuation anyway. Why did you do so? Was there something the surveyor did/could not know that you did? If you pursue a case you would have to show that the valuer did not properly take into account the market evidence, etc. If you find that the valuer did no market research and simply went with the price for no reason than laziness then you might have a case. I think this is unlikely however. Further, you would have to prove a financial loss, which at present is unlikely because you do not say you are selling for a loss. There are many of us who purchased a property only to find that within months the prices achieved had dropped. This is a risk with buying any property. You may have to simply wait until the market recovers.

I was involved in a case a year or so ago where the judge considered the purchaser's own knowledge of an area critical as well. If the purchaser had come from outer space with no knowledge then one can reasonably expect that they would offer a silly figure in total ignorance. However, if you spent months looking for property in the area and eventually negotiated a price (and in this instance the price was below the valuation) you cannot claim total ignorance. The fact that you spent time looking meant that you were as aware as any valuer might be of the local market and market values. It is therefore reasonable for a valuer to use the agreed price itself as evidence of the market value. This was the view of a judge. Whilst you could seek legal advice I have serious doubts as to the validity of any claim in the circumstances you describe.

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http://www.periodproperty.co.uk/uncle072004.shtml

SUBJECT: House prices appear to increase but ours falls by £43,000 in 12 months

FROM: Elizabeth Grieve (Cambridge)

Well at least she hasn't "lost down a drain" any "dead money" "paying off a landlords rent" for that 12 mth period.....

After all doubt she would have got much of a pad on the rental scene for that £3583 mth + mthly mortgage payment. :blink:

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Does 15% down in one year... and here I mean real price paid in 2004 compared with estate agent's (probably optimistic) valuation in 2005... constitute a crash?

Perhaps they should leave it in the estate agent's window at £375k... then they can tell themselves prices haven't "crashed"...

Or maybe rent it at £1,750 pcm and then tell themselves it is worth £375k?

:lol:

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My God, Liz, my heart goes out to you, it really does. Imagine, being duped by an EA, eh? Why, it's practically unheard of.

Shame I can't lend you my brain as well as my heart, because it seems as though that's actually what you really need to borrow.

Now, read my lips: Dumb Ass!

:lol::lol::lol::lol:

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surely it cant be cost effective to buy and sell a house every 12 months though???

she must be paying a fortune in fees.... her fees are probably more than rent for a year...

oh well bring on the crash I say...

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After all doubt she would have got much of a pad on the rental scene for that £3583 mth + mthly mortgage payment.  :blink:

Yep, that's only a mere £3k / month more (nearly) than I'm paying - and I live in London! And just think, 12 months x 3k + 12 months worth of interest isn't beer money. Oh, plus the £50k she's "lost" and the associated moving costs in the first place, let's call this "investment" a 100k "loss" in the space of 1 year.

Now let's wait for Without_a_paddle (Without_a_brain, morelike) to come on and ignore the figures and just tell us how this woman will be safe as she has a "pension" in the form of her home (and don't even try to explain to him the effect of having stuck that "lost" £100k away last year and letting it mature for a few decades on the stock market...)

No home? No pension. You're Doomed! :D

Nomadd

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Have you ever heard of a bank's appointed homebuyers report that didn't support the valuation? I haven't. The only time it would become an issue for the bank is in a reposession situation. Statistically it is in their best interest to lend as much as they can.

What a muppet.

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A house is worth what someone will pay for it.

She was willing to pay that much for it, no one else was. She had a choice and made it, I bet if she offered 310K last year they would have bit her hand off!

A warning should be placed on houses much the same as for investments - PRICES CAN GO DOWN AS WELL AS UP.

They should put that across the screen during all house programs and full screen when krusty is saying house prices WILL double!

Maybe we can use that as a tagline for this website?

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i suspect the majority of people on this forum are in rented accomodation/ living with parents, friends, flatmates/ wanting to trade up.

people in these categories( including me) are obviously gleeful when we see the crash materialising as it will meet our objectives and vindicate the strategy we have taken.

i think we need to have the crash, but it gives me no satisfaction to see people such as these facing a huge loss in such a short period of time.

in some cases the people may be able to take the loss.

in other cases they will have been naive/ foolhardy or whatever.

for many it will be financial ruin including the effect on their personal lives.

i dont wish it on any of them, but this type of misery is about to unfold on a big scale

for every loser there is someone who made a killing and will enjoy the gains over the coming years.

life was never meant to be fair

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i suspect the majority of people on this forum are in rented accomodation/ living with parents, friends, flatmates/ wanting to trade up.

people in these categories( including me) are obviously gleeful when we see the crash materialising as it will meet our objectives and vindicate the strategy we have taken.

i think we need to have  the crash, but it gives me no satisfaction to see people such as these facing a huge loss in such a short period of time.

in some cases the people may be able to take the loss.

in other cases they will have  been naive/ foolhardy or whatever.

for many it will be financial ruin including the effect on their personal lives.

i dont wish it on any of them, but this type of misery  is about to unfold on a big scale

for every loser there is someone who made a killing and will enjoy the gains over the coming years.

life was never meant to be fair

I must admit that this whole aspect of things makes me feel slightly queasy,

Peter.

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i suspect the majority of people on this forum are in rented accomodation/ living with parents, friends, flatmates/ wanting to trade up.

people in these categories( including me) are obviously gleeful when we see the crash materialising as it will meet our objectives and vindicate the strategy we have taken.

i think we need to have  the crash, but it gives me no satisfaction to see people such as these facing a huge loss in such a short period of time.

in some cases the people may be able to take the loss.

in other cases they will have  been naive/ foolhardy or whatever.

for many it will be financial ruin including the effect on their personal lives.

i dont wish it on any of them, but this type of misery  is about to unfold on a big scale

for every loser there is someone who made a killing and will enjoy the gains over the coming years.

life was never meant to be fair

Yeah, I don't wish that kind of misfortune on anyone. Having said that people looking to sue their surveyor because prices are dropping....

someone needs to give her a slap, I mean what f*****g planet are these people on.

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i think we need to have  the crash, but it gives me no satisfaction to see people such as these facing a huge loss in such a short period of time.

in some cases the people may be able to take the loss.

in other cases they will have  been naive/ foolhardy or whatever.

for many it will be financial ruin including the effect on their personal lives.

i dont wish it on any of them, but this type of misery  is about to unfold on a big scale

for every loser there is someone who made a killing and will enjoy the gains over the coming years.

life was never meant to be fair

Nobody gets satisfaction in others distress from housing woes unless they are a bit warped. However people need to be responsible for their own lives - dont borrow what you cant afford, don't speculate on property if you haven't got the resources to make losses as well as gains and finally plan long term.

If you are sensible a downturn wont affect you in the very long term. It will be painful sure, but you will emerge from it relatively unscathed if:

1. you took a loan out that you can afford (factoring in interest rate rises)

2. made sure that the house mmets your criteria for at least 5 years

3. that your potential for rent will meet your mortgage costs should you need to move.

Unfortunately in boom times the mantra is borrow as much as you can regardless of whether you can afford it, and as Kirsty says if you snooze you lose ... well no if your hasty and don't plan properly you will be in the sh1t big time....

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i think we need to have  the crash, but it gives me no satisfaction to see people such as these facing a huge loss in such a short period of time.

in some cases the people may be able to take the loss.

in other cases they will have  been naive/ foolhardy or whatever.

for many it will be financial ruin including the effect on their personal lives.

i dont wish it on any of them, but this type of misery  is about to unfold on a big scale

Me neither, but people have to take responsibility for their own actions. If you choose to take on a massive loan, the buck stops with you. Its no use wingeing about EA's, lenders or valuers - they're not the ones who have to pay the money back.

There is almost an attitute of it not being real money - but it all suddenly becomes very real when it turns into a negative equity.

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It seems to me that all most people on this forum want is to be able to afford to buy a normal house on a regular repayment mortgage of 3x their annual income. You know, like you could in the old days of about 5 years ago.

Sadly, for this to happen, there's now going to have to be an HPC and there are going to be tons of Lizs and girlfriend's cousins out there who have overstretched themselves on the advice of people who were just out to make a fat commission.

If only there were some way of preventing it happen (time, after time, after time). But there isn't, because man (and woman) is essentially a greedy beast.

So, given that history repeats itself with such stunning regularity, I think it really is down to the Lizs and the girlfriend's cousins to DO THEIR HOMEWORK FIRST.

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I think its hilarious why should anyone feel sorry for this muppet.

Maybe in future people wont blindly go out borrowing huge sums of money without doing any research.

Lets face it the last crash only bottomed out 10 years ago, its frightening how short some peoples memories are.

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Shes another shock to come then. When she puts it on at £300 and someone offers £280.00

:lol::lol::lol: I nearly fell off my chair laughing

I don't remember anyone offering the surveyor a tip when the price went up

Silly cow

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It was priced at £350,000 when she bought it, but she payed £343,000 - I wonder if she had any guilt about offering (and paying) less than the vendors had it on for? Obviously a sign that offer/buyer prices are flexible.

However, now it is valued at less than she wants/paid she is not a happy bunny ... you can't have your cake and eat it.

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True.  But the saying does go 'look before you leap.'

I personally will have no sympathy for anyone who has overstretched themselves.

of course not!,the circle is now complete!!!

they were vultures a few years ago picking off the props and hoarding them,now they are the prey,and some rightly deserve to get devoured entrails included.

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Guest Bart of Darkness

Should Liz Sue The Valuer For Overvaluation?

No, she should go f*** herself!

Harsh, but fair! :)

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Yeah, I don't wish that kind of misfortune on anyone. Having said that people looking to sue their surveyor because prices are dropping....

someone needs to give her a slap, I mean what f*****g planet are these people on.

Well hell.

Personally I was trying to work out why I couldn't afford any kind of home when I was earning over £30,000 a year in the south east.. (not london..) I gave up my job.. moved back to devon.. got another job in short order.. and I am waiting.

its the biggest investment in peoples lives.. don't go into it blind..

But the crash will kill some.. and ruin many..

The suicide rate last crash was too high.. (one is too many)..

This must never happen again

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It was priced at £350,000 when she bought it, but she payed £343,000 - I wonder if she had any guilt about offering (and paying) less than the vendors had it on for? Obviously a sign that offer/buyer prices are flexible.

However, now it is valued at less than she wants/paid she is not a happy bunny ... you can't have your cake and eat it.

Spot on. What goes around comes around and all that B)

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I think we should feel sorry for her and do a whip round for her. On the other hand if someone lives locally knnock on the door and ask whether she would do a private sale for 275 K. I was speaking to a friend of mine. In the early ninties his brother's property dropped by 10K, it was a 45K property(them were the days). The price drop cause so much panic and depression the marriage split up. With prices so high and overpriced...we classed properties in the late 80s and early ninties as not being overpriced how will people react to a 100 K and being 50K or more in neg equity.

I think the mentality as safe as houses and they can only go up are a thing of the past.

Greed makes the market go up slowly, Fear brings it spiralling down.

I don't think unemployment benefits have kept pace with spiralling mortgages.

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Well hell.

Personally I was trying to work out why I couldn't afford any kind of home when I was earning over £30,000 a year in the south east.. (not london..) I gave up my job.. moved back to devon.. got another job in short order.. and I am waiting.

its the biggest investment in peoples lives.. don't go into it blind..

But the crash will kill some.. and ruin many..

The suicide rate last crash was too high.. (one is too many)..

This must never happen again

Suicide rate?? People topping themselves due to negative equity? To me this only means one thing... they value their own life less than money. That's not a symptom of economics, it's a symptom of personal priorities. Nevertheless I agree it's very sad.

It's as sad as the stockbrokers who threw themselves out of high rise building during stock crashes, and of a chap I knew who was a compulsive gambler, and finally called his life to an abrupt end when he'd finally realised he was in too much debt to a casino.

While it's sad, the accountability is still down to the individual.

If someone cannot plan financially, then reap the results of that failure, and decide the best way out is suicide, perhaps, taking a Darwinist perspective, someday everyone will be wealthy? ;)

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  • 301 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% +
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      • up 5%



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