mortgage company valuations - are they much different to estate agents valuations?

[Yfronts]

Just that really. We are due a mortgage company valuation soon and wondered if it will be in line with estate agents valuation (when we eventually get one)?

Are you in Scotland?

midlands

Ah, I can only go by Scotland where they should be similar. I have no experience on English ea and surveyors.

Mortgage companies only care about getting their money back. Not the sale value - ie nice area, brilliant kitchen or conservatory etc. They basically want to know that if the whole thing caught fire that they would get their investment back.

Our mortgage valuation was 146k ... the guy literally drove past the outside of the house! Our estate agent (valued within 2 weeks of each other for various reasons) said 170k.

Is the estate agent you refer to acting for the vendor?

we had about 20k difference...

A mortgage valuation will be as per the RICS definition of 'Market value' and they will base it on recent transactional evidence and, to some extent, the surveyor's own experience and skill if no similar recent transactions.
A estate agent will not necessarily use the RICS definition of Market Value when providing their valuation and it is sometimes a little in the higher side but it really depends on how realistic they are or if they are being optimistic to get business. I would ask the agent what comparables (similar recent transactions)they have used to provide their valuation to give you an idea if they are being a bit bullish. Make sure they are referring to actual transactions, not just asking prices.

The last time I looked into mortgage valuations, my building society said they only use the Halifax House Price Index. They can be persuaded to visit and actually value if you can convince them that you've vastly increase the house value (huge extension, noisy factory over the road converted to posh houses etc). Otherwise, they put the last sale value and date in the Index and believe the result. In my case, a Leasehold Valuation valuer has said £179k and the Halifax House Price Index said £149k.

Sandboy- yes some banks just use an index as a guide instead of a proper Market Valuation, especially for remortgages. Worth pushing for a full inspection valuation (unless your property is in worse than average condition etc) even if you have to pay for it as this is obviously more accurate. Drive -by valuations tend to also be a little on the conservative side as certain assumptions need to be made about the condition and layout etc of the interior.

Can I add that is more rare for a drive by to be done now than it used to be.

We are just about to put our house on the market next month. Haven't decided which estate agents we will use yet

Thanks for all your posts. Very interesting thanks.

It's an internal not drive by.

The EA valuation will almost certainly be higher (possibly ludicrously so). They'll promise you the moon on a stick to try to get your business (even though they know you haven't got a hope of getting the price they promise they can get you within a week or two or signing up).

I was in when the mortgage valuation surveyor came round and we had a long chat - he took lots of photos, asked lots of questions about the house, what we'd had done, house prices in the area. He valued it the same as the EA.

Mortgage valuation on the hosue we're oging to buy also matched our price though both our surveyor and structural engineer were amazed that they didn't query the very evident signs of movement.

So, what if you make an offer based on the EA valuation, then the mortgage company makes a significantly lower valuation? What's their cut-off for giving you a mortgage or not?

Scotland's system sounds like it makes a lot more sense (I'm in England).

pixie either you haggle with the seller or top up your deposit (or a bit of both)

Top up my deposit?! Crikey, what with ?

(Thanks Mousy.)

IME the EA will come in highest.

In 2010 we tried very hard to buy a repossession. We offered £185k, EA was gushing about what a bargain we had as it was "really" worth £220k. Mortgage valuation was £185k. We got gazumped and didn't pursue it as mortgage company refused to accept EA's valuation, and we couldn't comfortably raise our offer due to LTV/ interest rate hike, so we backed off and let it go. So glad we did as two identical houses on that street have since sold for £180k mark.