Surveyors - undervaluing your home

[bfb]

It is more likely that the builder claiming that no building warrant is needed for the toilet is a cowboy than the surveyor is a clown- the people to approach for correct information on this are Building Control who will confirm whether a warrant was applied for/needed and be able to confirm the position in writing. Allowing a higher figure from the Surveyor

 

You may find the same issue appearing every time the house is valued for a lender a therefore it would be best to get the paperwork into order

 

In valuation terms the difference between the figures of 121500 and 125000 is very small

[zootscoot]

are we stuck with having to accept £121500. for this property.

 

No the decision as to at what price you sell is always yours.

 

Joncris gives some good advice here it is all too easy to set your heart on a certain house but you just do not know what is going to come on to the market in the next few weeks. If you stick with this buyer you're going to lose the house in any event.

 

The surveyor is spitting his dummy out over you challenging his findings. He knows your unlikely to be able to comply and is digging his heels in. I've never known a surveyor demand such documentation before.

 

You will get sorted in the end.

 

Zoot

[Glenn UK]

Outof interest you could make his life difficult by askign what certififcates hes after in respect of the various works.

 

Ask what the coertificates are supposed to show in termsof building regs.

 

I dont have my copy here now but i dont think adding a toilet is notifieable work under buidling regs, and they came in around early 80s iirc.

 

the area of building regs i specialise in is not fitting toilets but the advice to speak with the local building control is reasonable.

 

Ask for the sruveoyr who deals with your area he or she will know the area probalby give you the info off the top of their head.

 

Glenn

[yummynanny]

Hi there

 

You do not have to lower the price of your house. It is worth your estate agent pointing out (rather firmly) to your purchasers that the surveyors report is only one person's opinion of what a property is worth and although that opinion holds weight with the potential lender, it is his job to err on the side of caution. They may not know that although they have paid for the survey, he in fact works for the lender and not them. The difference between the price you have agreed to sell at and what he says it is worth is only £2,000. Unless your purchasers are applying for a large mortgage (in relation to the purchase price) this small difference in what the surveyor thinks the property is worth and what your purchasers are prepared to pay for it is negligible. It is also possible that the lender will still lend your purchasers what they have asked to borrow, especially if they are borrowing less than 80% of the purchase price. Please remember that your estate agent works for you, he valued and sold it and is in the best position to fix this for you. It is worth remembering that if you stand firm and your current purchasers do not proceed, another surveyor for another purchaser will undoubtedly come up with a different figure.

 

I wish you luck. Let us know how things go but don't be bullied into anything by either your estate agent not wanting to let the sale founder (not all bad guys I hasten to add) or by the opinion of one surveyor.

[JonCris]

As I recall the surveyor has also stated that certain works need to carried out before sale completion.

 

If that is correct then the lender will not release 1 penny until it is done. Any offers unless they are cash are worthless without the lenders agreement

[Nightmare4banks]

laineynic,in reply to your posting and in my personal opinion - by the way I have worked in the mortgage industry:

 

1.DO NOT accept a lower offer.Your buyers could go to another surveyors company and pay for another valuation fee.

 

2.The surveying company MUST be acceptable by the lending company - it is called a Panel Surveying Company in the industry.

 

3.It is incorrect to say that the person who is paying for the survey cannot obtain a copy.Are you sure the property has been downvalued by the surveyor?This sort of tactic of offering a slightly lower sum of money is "gazumping" of the best kind - if it can be called that!

 

4.Also,it is incorrct to say that the surveyor who is valuing the property on behalf of a mortgage company does not have the duty of care towards the person who is applying for the mortgage.At the end of the day,just ask yourself one question - who is paying interest on the monies borrowed has a right to know how much the property is worth with proper skill and knowledge? Obviously the mortgage payer - there is actually a precedent case(I will try and dig it out of one of my books and post some details here as soon as I find it) about this three way relationship.So,do not believe anything else you maybe told.

 

5.Anyway,to put it briefly either ask your current buyers to pay for another valuation - mention a "Panel Survey"(you could also run this past the estate gent and see what he/she says) or alternatively remarket your property.

 

Finally,be very wary of gazumpers who attempt to reduce their offers towards the end of the purchase process.In this case call their bluff and refuse to sell the property to them - don't forget they have already spent money on the survey and searches etc whereas in your situation as seller you do not need to spend any money until the buyer gets the mortgage offer.I have personally done this in the past to a buyer that tried to gazump me and I ended up with £3,500 more!

 

Keep your chin up and be positive.

 

I hope you find this information useful.

 

If you have any further questions,just ask.

 

All the best!

[give_me_it_back]

I have been self employed in the property business for a long time, and have bought and sold a lot of houses. I have good relationships with many estate agents, surveyors and valuers. They all say - "A property is worth what someone will pay for it".

 

If your buyers are really going to quibble over 2k and lose the house that they want, tell them "thanks for your interest and your offer. We are looking for the full amount. If we get no better offers over the next x weeks/months, we will come back to you".

 

A house I sold a few years ago was valued at 3k less than I was asking. I stuck to my guns, and the buyer did go ahead with the sale as they really wanted the house, and believed that the surveyor was giving a low valuation. Other local valuers had valued it at the full price. I suppose there is a risk on the buyers part of 'negative equity', but, to be fair, 2 or 3k..? A few months in a rising market soon puts paid to that.

 

The final decision will always be the sellers. Keep marketing, and make it clear to the prospective buyers, your estate agent and the surveyor (of you do get a chance for a little 'mention' over the coffee you make them when they come to value your home).

 

Good luck. I know how stressful it can be!

[laineynic]

Dear All

 

Thanks for ll of your help and advice which I have found very useful.

 

The porspective buyers came to see us last night and apologised for the stress they had caused us.

 

They agreed with us that the surveyor concerned had picked every fault possible withe our house. They also explained that this surveyor had cost them the previous house they wanted, as the buyers weren't happy with a low valuation and pulled out of the sale.

 

They have offered to pay the difference of 2k themselves, but firstly we are going to work together to sort out the certificates that have been requested and some of the minor works that he found.

 

This is the first time we have encountered a surveyor who seemed to be very - picky if this is the right word. we have had a great relationship with the estate agent and have not found them to be any problem to us at all. In fact they have helped us 100%.

 

The young couple who are hoping to buy our house seemed to have been talked into a full in depth survey by the lenders.

 

My house was built 70 years ago by a local builder who's reputation for his work was the best. I believe that in 70 years my house will still be standing.

 

Lainey

[JonCris]

Great news! But are you sure it was the lenders & not brokers who talked them into having what sounds like a very expensive structual survey done.