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Halifax Valuation 20k Less Than My Asking Price Offer

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Am i reading this right? Yet another MSE muppett:

"Hi all,

Halifax have valued a property im trying to buy at 20k less than what ive offered. The property has just been done up and is well over the asking price using the house price valuation tool Martin suggests in a recent post.

The valuation report doesnt even mention it has a en suite and a big garden for a london property, you dont get much for a £400 mortgage valuation fee!

I paid a mortgage fee upfront, what are the chances of getting this back?

From previous conversations the seller is no way going to drop 20k and just rent it instead.

Is there anyway i can object to a valuation? ive paid for a service and all i have is about 6 sentences, it doesnt even mention the en suite. It says the bedrooms are small but the measurements are 4.47m x 3.51 and 3.66 x 3.23 with en suite and another bedroom at 2.82 x 2.72 which is small but still a double.

Are banks deliberately undervaluing ? Ive checked everything else in the area across multiple estate agents and flats that are only 2 bedroom cost 5k less that im paying without a garden. this one has a garden and a extra bedroom.

Should i call the valuer? his details are on the report. I dont know what the best course of action is.

Any advice or people in the same situation i would be grateful to hear from you.

Thanks"

:lol:

http://forums.moneysavingexpert.com/showth....html?t=1015757

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I heard on the grapevine that 200K were now routinely being 'undervalued' by lenders by 20K. Seems to be the figure - perhaps they are simply taking 10K per 100K off every property?

That is still only 10% though isn't it.

Does that poster state how much his asking price was?

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If downvaluing becomes the norm (and in a falling market it certainly will) vendors will revert to the early 1990's tactic of telling the lender and valuer that it is being sold for more than it actually is (eg the asking price).

Property valuations are, by and large, nonsense. You can't escape the basic econonic rule that value derives from what someone is willing and able to pay. The usual technique that a valuer would use is to obtain sales information of three comparable properties which have sold close by within the past three months and see how they relate to the subject property. I would challenge any valuer to produce accurate evidence, as directed, in the present market. He can only use guesswork and opinion - little more than most forum readers are able to do.

The mortgage system is well overdue a major overhaul.

By the way a £400 fee to a valuer is wishful thinking. The lender may charge the client £400 but the valuer is lucky if he gets £170 on a £200K house. If you ask the lender why they are charging £400 they will say its for the valuer, the reality is, as the advert says, to pay for the bubbly at the shareholders meeting!

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  • 396 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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