Surveyor valued house at less than the offer accepted

[MrsH2010]

Ok- so we're selling and relocating. Found a nice buyer for ours, they made an offer under the asking price and we accepted. Surveyor then came along and did his thing for two hours- told me all was as to be expected for this age of property and nothing major showed up. Roll on a week (today) and I got a call direct from the buyer- kicking myself a little now for ever giving them our number- and she said there is a glitch. The surveyor has valued the property at 12k less than their offer that we accepted. Now, they are cash buyers- so it's not like the mortgage lender will now reject their application or give them worse rates. I also am 99.9% sure this happened both when we bought it, and when we remortgaged it- and both times mortgage was approved by bank anyway. Apparently the surveyor also told them to be 'sceptical' of why we used an out of town independent estate agents, instead of a large chain, or someone with a massive presence inthis area... I actually find that a moot point these days- as internet i were most people search for properties- and the town they are based in is 15 minutes drive away and we are not the first or last place they'll sell in this town. am cross that he's even raised that query to be honest!!
So- we are obviously reluctant to drop price, and i havent had any 'official' news on this from agent or solicitor- so i have to presume they are doing what they're paid for and trying to mitigate and manage the situation before it evens gets to me... My Dad said to be wary- as it could be them pulling a fast one and trying to get a reduced price.

My over-riding thought to is that a house is only worth what someone is willing to pay. i wouldn't personally offer a figure on a property that I didn't think it was worth...

(The ironic thing he is also 'out of town' from a place 40 mins drive away!!)

The mortgage may well be approved by the bank; but they'll repay £12k more than the house is worth. Why would they do that?
Why did you do that (if I've read it right)?

Deal with it through your solicitor, they might just be chancers but if not you should find out through your solicitor exactly what the reason is. Sounds really stressful- hope you get it sorted.

They are cash buyers- so no mortgage/bank involved from their part... Also, the surveyor sees the property as simply a two-up two-down, whereas the buyers are renting it to their daughter and her friends, and are looking to use the converted and finished cellar room as a third bedroom- to get three and not two tenants worth of rent. I understand that no-one wants to pay over the odds for a property obviously, but surely people offer what they think, having seen others, that it is worth. In this case especially, the cellar room is 'worth' more to them than to the surveyor. Knowing rental prices for just two rooms nevermind a 3 bed in this area I know the buyers would make back the £12k the surveyor is waffling on about in the first year of renting it out alone...

Most people wouldn't buy a house if a survey said it was worth less. You can either drop the price or look for a new buyer and New surveyor

yes, they will offer what it is worth to them. They are in a position to make their own judgement. What you can do is tell them why you think the surveyor is wrong - as they often are.

BTW they may get £12k rental income. They will pay agents fees, insurance, maintenance etc etc on that. They will not 'make' £12k.

The same thing happened when we sold our last house- the surveyor undervalued it by £30,000!!! Our buyers tried to negotiate us dropping the price but we told them to go find a comparable property in our area that was £30,000 cheaper.
After two nail biting days they agreed to pay what they had offered. When we asked the estate agents why the surveyor had undervalued it they said 'he felt it seemed expensive for the square footage and it had risen considerably in the three years we'd owned it'
Er maybe because we had renovated it and it is is located in an expensive town in the South East!
What I am trying to say is, don't panic and don't be forced into dropping your price, research and see what is on offer at the proposed lower price.

In London it's very common that surveyors undervalue - it has usually no effect on the price. But going just by footage is ridiculous - you may have expensive furnishing or fittings there! plus obv the location - good surveyors ALWAYS mention location. My previous one stated in report that the flat is worth less neutrally speaking, but the right price for the location.
I wouldn't worry or back down - let them try to find something else! it's a tough market with not enough on themarket in all nice locations.

Thanks everyone- we still haven't 'officially' heard anything from estate agents so we're hoping they're mulling it over for the positive!! By the way they are 'renting' it to their daughter and her two mates as none can afford to otherwise move out of parents houses- so no agents fees ro get tenants and all the rest of the usual rental fee costs to incur, yet still the income of three (not 2) rooms.
We will negotiate on 'giving' fittings that they'd agreed to pay for outside of the agreed price originally and some we weren't willing to leave even if paid for that we now will (which prob all adds up to £2k'ish at 2nd hand prices, yet are fairly new) whilst I realise that doesn't equate to 12k it's a way of showing willing.

Apparently other comparisons were closer to surveyors value but even buyer said weren't in as good of a condition, or with the character, in dodgy streets, without new boiler, bathroom, decking, shed, kitchen, floors, tanked cellar, fuse box and electrics (all done at ours in last 3 years)- so it seems daft as you can never compare apples with apples...!! (And if you had to out all of that in new it would be more than the £12k in cost!?!).

Like I said, i know both types we bought here and remortgaged it, the surveyor valued it less, yet the bank had no issue. And our buyers are cash so bank not agreeing or giving worse rates isn't even a problem...

Lots of nail biting here- but thank you all so much for responses- doesn't feel so lonely out on this limb now!!! xx