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Mortgage valuation - how accurate are they?

6 replies

NorkyButNice · 30/07/2009 10:55

We just had our house surveyed (full survey as it's an old house that's been extended and converted) - we've had the initial valuation back and it's come in at exactly the same as we paid.

It's obviously nice to know that we haven't paid too much, but is it normal that they'll just say it's worth what you've paid?

We paid 390, when the asking price was 400.

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nickytwotimes · 30/07/2009 11:07

Well, ime surveyors will often value it to what the purchaser of the survey is aiming at, be they the seller of the property or the buyer.
We have just sold and had a completely unrealistic valuation on our own and sold for 25,000 less. The purchasers' lenders insisted on their own mortgage valuation and it came in 20,000 less than ours!

don't want to rain on your parade, but many sellers seem deluded in their expectations.

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HerHonesty · 30/07/2009 11:40

you should bear in mind that a mortgage valuation is not for you, its for the lenders. they are looking to find out whether or not they will get their money back if things go tits up, so may (or may not) well be on the conservative side of things. what someone will pay for it another matter, ie. a market valuation, and you dont really know what this is till you have put it in on the market.

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randomtask · 30/07/2009 12:54

Ours came back as exactly what we're paying. However, it was built in the 1950's and last decorated in the 70's so we've got it for £25k less than the other houses locally. We're going to do work on it (so it'll be worth at least £25k more) but I just figure they know what they're doing.....

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lal123 · 30/07/2009 13:16

Yup - if its a mortgage valuation it will come back at the price, assuming all is well.

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lal123 · 30/07/2009 13:19

Oh - and just thought - its not in mortgage company's interest to value at higher than the agreed price as that will change the LTV rate in your favour.

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NorkyButNice · 30/07/2009 14:19

Thanks all - I'd thought it would probably come in lower than we paid so was pleased it didn't. I just wondered whether they would say if it wasn't worth as much as we were paying, or if they always just sign off the agreed price.