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Denzil

Increasing Number Of Ea Valuations Rejected By Lenders

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This is probably worth a mention as it may start to cap unrealistic valuations and vendors testing the water.

I have a few childhood friends who I trust completely that happen to be EA's and I also view properties that seem well-priced(relatively) so I also speak to other EA's who's opinion I would not completely trust. A common theme is emerging mortgage valuation surveys are coming back with surveyor stating the property is over-valued. My contacts are based between South Gloucester and North Devon border. One had stated that they had three price rejections in the last 10 days. Comment from one of my friends was, "lenders are getting really cautious" and the amount of overvalued properties has jumped significantly. On a sour note my friend in Gloucester stated that prices are starting to rise in his area due to a lack of supply after a boom in spring.

I know of a sale in Somerset. Valuation £289K. Vendor accept £285K. Mortgage surveyor stated that property was only worth £269. Vendor refused to drop price even though nothing in that street had ever sold for more than £275K and a chain of 6 collapsed.

I can't say if lenders across the board are becoming more careful or if it just one in particular as I do not know the details of the lenders involved.

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Mr BE was in a branch of a well-known bank a couple of weeks ago -- not sure exactly where, but somewhere around Southampton I think -- and heard an employee on the telephone to a disgruntled would-be buyer. It seems the bank's valuer had downvalued a property, and the would-be buyer was trying to get the bank to lend on the basis of the agreed price. The employee was saying that this wasn't possible, and that getting a valuation from someone else wouldn't help, as it was the opinion of the bank's own valuer that mattered; and she said that the only thing the buyer could do to try to change the valuer's opinion was to obtain comparables (evidence of recent sale prices of similar properties nearby). Mr BE said that the conversation went on for quite a while, and that the employee was rolling her eyes to a colleague while it was going on.

BE

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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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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