Valuation - please help!

[flatstress]

Hi, I would very much welcome some advice. I am selling my flat and the estate agent suggested their asking price/what to put it on the open market for. The flat is currently rented out and one of the tenants said they wanted to buy it for the asking price. Great (or so I thought!). They arranged for a survey/valuation which turns out to be £50K less than the asking price. The property is shared ownership. I really don't know what to do as I have never sold a property before and would very much welcome some help. Many thanks.

[RCheshire]

What are the buyers saying? Most buyers would pull out I think with a valuation that much lower. Unless they think the world of it/are loaded.

[homebythesea]

THis means that any other purchaser would not get a mortgage at the current asking price so you have choices

1. Deal with the issues raised by the Survey to increase the likelihood of getting closer to the asking price - but how much will that cost?
   
2. Drop the asking price so that survey valuations will enable buyers to get a mortgage.
   

Did you get other valuations / research what similar properties are going for in the area (actual sold price not asking price) ? It may be that in their eagerness to get your business the EA overvalued the house in the first place - £50K is a huge differential

[bumbez]

Why did the survey value it for less? Does it need work? Estate agents often over value things to get you to choose them over other agents so I would get at least 3 agents and challenge them to why they think it's that value. Also do your own research find similar properties to your own and what they sold for on right move sold prices.

I have no knowledge about shared ownership though, does this mean you own half the property and pay rent for the other half?

It would certainly be great to sell to the tenants though and cut out estate agent fees. Good luck :)

[RCheshire]

It sounds like a valuation survey, in which case it's probably not that the surveyor is saying there's anything wrong - just that the agent (& potential buyer) have seriously overvalued it.

Of course, if they need a mortgage then of course the bank won't lend beyond the valuation. If they don't need a mortgage they may well worry if they'd get £50k less for it when they come to sell.

The latest report from the Royal Institute of Chartered Surveyors makes grim reading - and they repeatedly refer to EA's and/or vendors overvaluing as a problem in the current market: Report

[MsMoppet]

Hi, I have had dealings with shared ownership housing and residential sales.

Do you mean that you bought the house as shared ownership from a housing association and then let it out?

Did you then buy the remaining shares so that it is now 100% yours?

If the housing association or house builder still owns part they are likely to have a policy for how you sell on your share.

[MousyMouse]

it also could be lower because it is not vacant atm.
agree with others, get another valuation and check similar properties on the well known websites.