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Original poster

Our house has been hugely down valued is there anything we can do?

33 replies

FannyGlum · 30/03/2016 15:34

We sold our house privately, and accepted an offer £5k under the price valued by 3 different estate agents. We've had an offer accepted on a property, everything was moving well, searches done etc.

Now our buyers have come back saying that their lender's valuation values the house at 15k under the agreed sale price. They can't afford to make up the short fall and we can't afford to drop by that much. Also I disagree with the valuation, we had 3 Estate agents value it, I've done a zoopla valuation and I've looked at recent sales. There are are other sales on our road, but they have one fewer bedroom, no garden and are terraces not semi detached.

Is there anything we can do except put house back on market? In doing so I think we will lose our purchase, as they have already lost a sale once and are desperate to complete (already moved out, living in rented)

OP posts:
ThroughThickAndThin01 · 30/03/2016 15:37

I think the only thing you can do is get comparables of what other properties have sold for, if they support your sale price, for the surveyor to consider. Although that'll be hard without an estate agent to help you.

bibbitybobbityyhat · 30/03/2016 15:40

There is nothing you can do. It is up to your buyers to find another lender, or show all the evidence to the lender who has downvalued it.

You could offer to let the buyers have copies of the Estate Agents valuations if you like? And ask them to make sure the lender is fully aware of the differences between your property and others on the road?

When you say Estate Agents values are you going by asking price, or the price they suggested the house would actually sell for ... those can be two very different things! No one puts a house on the market in the UK at a price they expect to actually get, unless in a very fast rising market.

Original poster
FannyGlum · 30/03/2016 15:42

The estate agents all valued at putting on market at £150k with a likely sale price of £145k. Which is what we've accepted. The surveyor has valued at £130k, which is a big difference.

Thanks for suggestions, will dig out the valuations.

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bibbitybobbityyhat · 30/03/2016 15:43

Oh wow yes that is a huge difference!

WhoTheFuckIsSimon · 30/03/2016 15:46

If you put it back on the market then you may well just have the same problem a few months down the line. Can you get hold of the surveyor and talk to them?

senua · 30/03/2016 15:48

Now our buyers have come back saying that their lender's valuation values the house at 15k under the agreed sale price

Do you know that this is true? Are they trying it on because they know that you haven't got an EA to represent you.

TeamFinn · 30/03/2016 15:49

When we remortgaged our house the bank valued it less than we thought it was worth and less than we needed for the mortgage we were going for. We paid for a proper valuation through the bank which came back at the price we'd thought. The initial valuation was just a generic one for the area not specific to our house. I wonder if your buyers could pay for a full valuation?

Original poster
FannyGlum · 30/03/2016 15:52

I don't know what type of valuation, but a guy came to the house and looked around. Although to start with he thought he was doing a valuation for letting. Think he was confused by lack of estate agents.

I do know because they have forwarded me the valuation report. I also know them really well.

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namechangedtoday15 · 30/03/2016 16:03

I think estate agents will have over egged the valuation and been over optimistic simply to get your business. Did you tell them you were putting it on the market (rather than selling privately?) they'll have been saying what you wanted to hear so you'd choose them and they'd get their commission.

I think the bank's valuation, albeit probably conservative, is likely to be closer to the value that estate agent's "valuations". You say 3 estate agents "all valued at putting it on the market at £150k" - but the £150k is only an asking price, not a valuation.

Have you looked at completed sales? How much have you added on for the extra bedroom and being semi detached? It might be that the "value" of those extras in your price bracket / location / target market doesn't really add much.

Original poster
FannyGlum · 30/03/2016 16:09

We did briefly have it on the market with one agent. Then Dh job situation changed so took it off. In the meantime a friend contacted me about their daughter looking to buy.

A house on our road, the same as us with a single storey extension added sold for 160k 18 months ago.

Oh god. If the valuation is right, then we can't move and we are stuck here. Which makes me cry. We needed a spare room for visiting grandparents amongst other things. Our kids on see them a few times a year as hotel prices are too much.

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Original poster
FannyGlum · 30/03/2016 16:10

We bought it 8 years ago for 145k. So if the real value is 130, we've got 5+ years living here.

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namechangedtoday15 · 30/03/2016 16:15

Whereabouts are you Fanny? 8 years ago was 2008 when prices were probably at their peak. Some places are not back to 2007/2008 levels yet.

How big is the extension of the other house? Is it online? Can you see a floorplan and if so, work out a price per square metre and see what your house would be worth at a similar price per square metre. Was it the same in all other respects (internal decor, garden, outlook, maintenance etc)?

Original poster
FannyGlum · 30/03/2016 16:21

Decor etc was all the same. I'll have a look for a floor plan. In fact it was almost 9 years ago as it was 2007. We are in Yorkshire. Thing is I don't even care about making money, we've spent over £20k on house- complete new double glazing, front door, new boiler, all new radiators, new kitchen and bathroom etc.

I just want a family house that fits us in. I realise you're all probably harder property tycoon types. If it is what it is we'll have to make do. But I'm gutted.

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notagiraffe · 30/03/2016 16:28

Generally, has the market fallen or been static in your area?

If you bought it for £145k and have spent 20K on it, it seems hard to believe it has dropped that much in value. I'd hold out for the agreed price. Our buyers did similar, and massively dropped the offer when we were on the brink of exchanging. We lost the house we wanted because of this, but we held out and in the end, they paid the agreed price and the house we got instead is so much nicer than the original one we'd fallen for.

If the market is dropping, that should be in your favour while you look. Let the people you want to buy from know what's happened though.

Bringiton2016 · 30/03/2016 16:36

I don't understand it either. Round here our type of house is going for a minimum of 180k, zoopla says 190k. We've just changed our mortgage and the valuation is 160k. The lenders take it from RICS I believe, and they are always lower. I noticed this when applying for buildings insurance etc.

namechangedtoday15 · 30/03/2016 16:43

This is what many lenders will use as a guide

Nationwide house price calculator

It is very arbitary but its used quite extensively by lots of lenders (not just Nationwide). I've just put £145,000 into it for Quarter 4 in 2007 and it says the current value is £134,403. I think too that the money you've spent on it will not necessarily have added value as far as a surveyor is concerned.

Like others have said, if your buyers want to challenge it / go with a different lender they can and you might get a different result.

Original poster
FannyGlum · 30/03/2016 16:45

I believe our buyers. One of them I taught in the sixth form and she used to babysit for us. I trust her with my kids!

Right think we need to have a chat with them and sort this out. How likely are the lenders to accept another independent valuation?

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Original poster
FannyGlum · 30/03/2016 16:47

Thanks namechange. Depressing to think we might be stuck here. Ah well, we have a house I suppose which is more than most of the world.

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RoganJosh · 30/03/2016 16:48

I've had a friend in your situation, well you buyers' situation.
She has to find a new lender, first ensuring that they didn't use the same surveyors.

RoganJosh · 30/03/2016 16:48

*had

Original poster
FannyGlum · 30/03/2016 16:50

That is one of the options we will put to buyers. Think we might invite them round to chat.

Hindsight is a wonderful thing but I so wish we hadn't bought a house when we did.

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Bringiton2016 · 30/03/2016 16:50

I've just put my details into the nationwide calculator and it is far far less than our valuation last month!

RoganJosh · 30/03/2016 16:59

Looking at zoopla, my bit of Yorkshire is up 22% on ten years ago and up 19% on five years ago. I don't think it dramatically rose from 2006-2007 so around here I think on average house prices have gone up.
I do wonder if your valuation might be wrong.

HolaWeenie · 31/03/2016 22:34

Surveyors are notorious for undervaluing, if your buyers were to default and their mortgage company had to repossess and couldn't achieve the £145k price tag, they would go after the surveyor.

Have you been shown proof of the surveyors valuation!? They could be doing this to get you to knock down the price.

Do you have the funds to have a surveyor of your choice survey and value the property?

Betty4321 · 31/03/2016 23:54

"Surveyors are notorious for undervaluing"

I think you will find its the other way round with estate agents notorious for overvaluing. Estate agents overvalue to get your business, surveyors have a duty to price correctly to protect the lender.

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