[Closed] House survey valuation question

yes, the estate agent will usually try and make it seem more expensive to get the business from the seller. Use that valuation to get the price lowered, if the seller has any sense they will comply. Let them see it if they ask. Are you raising a mortgage?

I didn't know surveyors valued the house as well. They won't understand the local market I would have thought. Or are they saying it needs £10k of work?

No mortgage but can't recall if the surveyor knows that. They are saying that doing some or all of the work might affect the value but they don't say by how much

you do understand its all just made up numbers anyway.. pay what your happy to pay no more.

Perfectly normal. A surveyor will assess the "bottom book" value so a lender would be able to depend on that value as security on a loan.

No it is not normal. From a mortgage valuation it is rare for a valuer to down value a property from the purchase price. The valuer will be using current on the market prices and land regis. current sale prices. Are you sure it's a down value and not a retention valuation if work is recommended to be done?
The valuation report is between you the valuer and maybe the mortgage lender. Not the agent. The valuer should be independent 3rd party from estate agent and usually mortgage lender.
If it is a genuine down valuation then it is time to speak to the agent and renegotiate.

genesiscore502011 - Member
No it is not normal. From a mortgage valuation it is rare for a valuer to down value a property from the purchase price.

I am sorry to re-post but it is not normal and not common. Down valuations on a survey against the purchase price are not as common as the valuer being in agreement with your purchase price. Mortgage or not.

OP your trusted valuer does not think your purchase price is reasonable. If you love this property enough to pay more than your valuer thinks it is worth then you have no issues.
If however you trust the knowledge of your chosen valuer and do not wish to pay over the odds it's time to renegotiate.

Had this before, we asked for the survey valuation to be increased so there was no problem with the mortgage. I think we had to provide some evidence but it wasn't a major problem. That was on a property we bought in London, over the asking price with sealed bids though.

It depends.

An estate agent's "valuation" is not a formal valuation. It's an estimate and is basically worth nothing.

Is the price the estate agent's proposing the asking price or is that the price you have offered and agreed?

An estate agent can't be sued for his estimate, a Valuer can, so the formal RICS valuation will have a lot more due diligence and liability behind it hence less finger in the air and kite flying.

If it's a mortgage valuation then the valuer is acting for your lender and nobody else. Depending what valuation they have been instructed to provide this can range from the most basic, which is really there to satisfy the lender there is no fraud i.e. the price being paid is in line with the market and that the loan you have requested in terms of LTV is in line with what is offered and their risk policies.

Sometimes people will over bid for personal reason, close to the mother in law, one kid at school in the catchment already etc. The valuer has to ignore this.

The valuation will be based on the local "tone". This is the band within which a particular house, with it's various features etc will sell for in a particular area.

If there are major works to be completed, and remember, it's not a building survey, then an end allowance is usually made so it will be Market Value £X, less £Y for repairs reported Market Value £Z.

Avoid using sale prices recorded in the Land Registry. these are prices with no context. you'll have no way of knowing if it was a decrepit granny house, quick sale as part of a divorce. repo or had two extra bedrooms.

Thanks all

To re-iterate there is no mortgage

The purchase price was agreed subject to survey which has now valued the property at 10K less than the agreed price

I will speak to the surveyor

Not especially looking to barter with the vendor but worst case scenario if I had to sell quickly not wanting to look at an immediate 10K shortfall either

On the opposite side mine was valued £45k higher than what we paid for it.

Usually the surveyor will value it at the offer price unless they find a significant reason to suggest it is worth less. Which does suggest you are over paying slightly.

The EA's price means nothing ...

No worries.

The Valuer is acting for you then - feel free to ask him /her how she got to the value - most are happy to lead you through the process and comparables.

Without stating the obvious, a valuer will often round up if it's only a minor amount - £10k on a £360k house, but not so much if it's a £120k house. It's an art not science, and there is some latitidue, but only so far as is reasonable.

iiwy I wouldn't tell the estate agents or vendors that you aren't raising a mortgage. Just use that val and says that's the most I'm prepared to pay as that's what it's worth.

Oh dear -
OP please ignore everything written on here mine included.
Please just speak to the qualified individual who you trusted to help you decide if to make (more than likely) the biggest financial purchase and decision you have made to date and maybe ever will.
No finger pointing on any comments here just concern for the OP