RICS Homebuyer valuation much lower than offer price!

[Cookiecrumblepie]

AIBU to reconsider my purchase if my RICS surveyor has valued the property I want to purchase for significantly less than what I offered? Has anyone come across this before? I'm talking over £100,000 less!

Any advice appreciated!

Did they value it low to allow you to renegotiate your offer?
In the theme of he who pays the piper calls the tune - buyers commissioned valuation, potentially low for negotiation purposes - sellers valuation, high to get a good price.
How did your offer compare to other offers (if there were any)? If 3 potential buyers have offered roughly similar amounts (not 100k apart) then your offer is realistically what it is worth. The only true valuation is what it ultimately sells for, anything else is a hopeful guess.
In Scotland the seller obtains the valuation as part of the home report - and even then everything is selling way above home report value and over asking price (which is usually several £k over report value) , so that tells you how inaccurate the valuations are.

The house is worth what somebody will pay for it at any given time, I massively over paid for a property in 2000 in my opinion because I needed a roof over me and my babies head in three months time and that was available. I paid £67,000 for it. I could put that on my credit card now.

100k on a small flat is a massive amount & no garden or outbuilding would add that much value.

It's kind of hard to tell - a %age is more useful than a raw figure.
100k over on a flat valued at 200k is a problem, but on one valued at 2.25million not so much. Even on one valued at 500k it would be a bit of an issue.
10% over no problem, 20% or more then i'd think there was an issue

@Cookiecrumblepie
100K is a very large amount over value.
However, you haven't mentioned what percentage 100K is of the accepted price. How much over asking price did you offer? Was there.a bidding war?
I think most people would be very concerned at the thought of paying 100K over value particularly at the current time. I think you need to speak to your surveyor first about how they have reached their valuation and then to the vendor. Given that you have said it is a small flat, I would be even less willing to pay over the value.

No bidding war, we were the second offer. Our offer is 15% over the valued price.

You could ask for another survey? Bank valuation is more reliable.

That's a big chunk over. Is it London at that price? I thought the market for London flats was very poor and that prices had fallen.

Are you in Scotland

I’m in London so crazy prices! They surveyor us going off square foot price but there is an office/studio/garden shed that adds living space but hasn’t been factored into the value. I’m a bit torn, as I love the house but paying a lot over market rate is hard to swallow