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difference between survey valuation and paid price?

(24 Posts)
SeasonalVag Wed 09-Dec-15 17:47:16

What's normal?

Waiting for results, always thought it would be roughly the same bar a few k, is this true?

FishWithABicycle Wed 09-Dec-15 17:52:51

Depends on how much hype there has been about the property. The survey valuation will be what the surveyor is confident you would be able to sell it for. If there's a significant difference but you can still afford the place with what the bank is prepared to lend, you can still go ahead but it's at your own risk if the market crashes.

NoSquirrels Wed 09-Dec-15 17:53:20

Are you worried for a particular reason?

Ime, it's either they agree with the mortgage offer/price offered, or there is a large and unexpected discrepancy that throws a spanner in the works!

potap123 Wed 09-Dec-15 17:59:06

Message withdrawn at poster's request.

SeasonalVag Wed 09-Dec-15 18:12:09

No, I just got anxious. In the past few minutes, the survey has come back with a valuation significantly over what we paid. Quite surprising?!

cunningplan101 Wed 09-Dec-15 22:05:44

They'll never be above the offer price, but they can come back below. So if the offer price is 799,999, then the survey will come back at either exactly 799,999 or below that if the surveyor really doubts the offer price.

namechangedtoday15 Wed 09-Dec-15 22:47:44

How can it be over what you have "paid" ? Do you mean what you have offered?

NoSquirrels Wed 09-Dec-15 22:53:05

That's pretty unusual, OP.

If your survey valuation is for the purposes of a mortgage, then the surveyor would only say it was worth what you have offered. Why would they value it higher?

Unless you are having a valuation for another purpose on a house you already own?

SeasonalVag Thu 10-Dec-15 06:10:25

No, it really is higher. I'm just surprised and feel like I cant ask anybody about it. All I can assume is we got a good deal.

namechangedtoday15 Thu 10-Dec-15 09:18:15

You haven't explained why the valuation has been done after the purchase? That might mean its not a valuation for mortgage purposes and a completely different question.

NotCitrus Thu 10-Dec-15 09:21:10

If you mean after offer, then possibly average house prices in the area have risen since the house went on the market.

If you actually have bought already, then even more likely.

NoSquirrels Thu 10-Dec-15 09:52:11

You must be having a valuation after purchase, yes? NOT a mortgage survey valuation?

SeasonalVag Thu 10-Dec-15 10:20:27

It's the valuation that we did as part of the survey which is part of the purchasing process.

wowfudge Thu 10-Dec-15 10:26:22

Are you using an independent surveyor and not getting a mortgage in order to make the purchase? A surveyor valuing when a valuation is needed for a mortgage will never value above the agreed price, though he or she may value below it. With a mortgage valuation all the mortgage company wants to know is that the security (the house) covers the debt (the mortgage).

NoSquirrels Thu 10-Dec-15 10:26:39

Odd then.

Is the surveyor/valuer from the mortgage company?

If not, and it's just a private valuation/independent surveyor then that would explain a discrepancy upwards.

SeasonalVag Thu 10-Dec-15 10:29:50

No its an independent surveyor. Yes reputable, in fact seems to be quite brusque so there's no way he was just pacifying us

SeasonalVag Thu 10-Dec-15 10:31:23

There will be a mortgage valuation, but they just ok the loan from what the ea told me.

NoSquirrels Thu 10-Dec-15 10:36:11

I see.

Then I would say it's nice to know, but not important, iyswim. If you are happy that's good, but it's not the important valuation, which is the one from the mortgage company. The mortgage company have to agree the price you are paying is fair so that's the only one that matters wrt the house-buying process.

SeasonalVag Thu 10-Dec-15 11:15:28

Right, ok, thank you. Presumably this valuation then makes it less likely that there will be a problem when mgage valuation comes about.
And....*breathe...

NoSquirrels Thu 10-Dec-15 11:18:24

Yes. And in the unlikely event there was a problem, you could show the independent surveyor's valuation to the mortgage company to strengthen your case.

But I think you're OK to breathe!

SheriffCallie Fri 11-Dec-15 12:59:19

Wowfudge, our mortgage valuation did come back with a figure higher than we had offered. £190k rather than £180k if that makes a difference. And that was the mortgage company's surveyer, not ours. Maybe a typo? But if not, it's not true to say they never value the house at higher than the offer.
Seasonal, I hope you get the mortgage valuation you are hoping for.

SeasonalVag Fri 11-Dec-15 16:11:48

Sheriff, was yours on the market for a while? My mil told me they probably took original price into consideration

GreenGoblin0 Fri 11-Dec-15 21:28:05

our valuation for mortgage purposes came back at 20k above asking/offer price so not true that they will never value it above the price you are paying

SheriffCallie Mon 14-Dec-15 13:04:51

Seasonal, it was actually. About five years, with two offers that fell through due to the potential buyers having trouble selling their own property. Went on market at the beginning of the crash, and we offered at beginning of 2014 (still in a slump, not SE). I think they were fed up by this stage so were being v realistic with the pricing.
I'm only just noticing the recent replies to this post btw. Sorry for the delay in responding.

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