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Original poster

Downward revision of property value

74 replies

Anewname20 · 30/09/2020 16:57

Has anyone had the experience of the bank revising the value of the property downwards? If so what did you do as the buyer or seller?

If it happens, which we think there is a possibility because of the insane increase in house prices, we may have to walk away if the seller does not revise the price.

OP posts:

Notavirus · 03/10/2020 11:58

The independent valuer is qualified and if he or she can be wrong why not the estate agent or the seller? The estate agent and the seller wants the highest. I would trust the judgment of the independent valuer. The estate agent and seller are not independent and if the valuer can be wrong they can be even more wrong because they are very very bias upward in pricing.

TazMac · 03/10/2020 13:09

@Notavirus

The surveyor is professionally qualified and working in a regulated profession. The Estate Agent isn’t.

TazMac · 03/10/2020 13:10

@Notavirus

I’m agreeing with you, just adding a bit more to your point .

FrankenNora · 28/10/2020 18:22

This has just happened to my house sale 🤬

Clearly an error on the Mortgage Valuation - percentage worked out incorrectly on a shared ownership property.

Buyer in a mad rush to buy has been chasing sale to go through asap

Then they have only just noticed this error yesterday, two months into the process 😐 Buyer pulled out today

Problem is all the FTB use this Agent, local area for local people, not the first time this has happened, any suggestions?

Chumleymouse · 28/10/2020 18:40

We had this once . House was 175k, ftb offered 175 ( on first day )
Bank valued it at 160k ( street was mostly smaller terraces)
They then reduced to 160k , we said no put it back on market.
Sold it next viewings for 174k.
It all depends on how much someone wants a property as to how much they will pay. Not everyone is mortgaged to the max and some are willing to pay for what they want . The banks are just covering themselves if it gets repossessed ( can’t blame them) .

Willowwood45 · 28/10/2020 18:41

I'm fascinated by this...we put an offer in on a house. We got it for 25k less than the asking price. We have found out this week through the right move sold pages that the house next door sold in July for 55k less than we have offered. 75k less than our house was put on the market for. And it has been extended both out the back and to the side so it has two huge extra reception rooms. We can't help feeling we are over paying and felt this a little even before we found out about next door. Is this the kind of thing a surveyor would notice?

Nonewsgoodnews · 28/10/2020 18:44

I wish I could help but I don’t understand what the error is. If it is an error can’t the problem be solved? Why are the buyers not willing to accept that it is an error if it is clear?

Sorry that tour sale has fallen through.

FrankenNora · 28/10/2020 18:44

Maybe surveyor typos are happening more than anyone realised before 🤪

Mumbum2011 · 28/10/2020 18:45

We had a buyer for our house who pulled out 5 weeks in and we'd already offered on another house. Plan was to pay cash for new house with proceeds of sale. Luckily we now have a new buyer but as our vendors are in a rush I've had to go down the mortgage route as it will be quicker and conveyancing nearly complete. We offered 15k over asking and now we need a mortgage valuation which we hadn't anticipated . I really hope it isn't devalued as we literally have no more cash at this point as we hadn't accounted for needing a 15% deposit so we've used all our savings. Not sure what vendors will do if it is devalued.

FrankenNora · 28/10/2020 18:52

@Nonewsgoodnews

I wish I could help but I don’t understand what the error is. If it is an error can’t the problem be solved? Why are the buyers not willing to accept that it is an error if it is clear?

Sorry that tour sale has fallen through.

Thanks, am still trying to find out via Estate Agent exactly what happened, in the meantime searching for experience of others on here.

Apparently Buyer said it’s not moving fast enough but how does pulling out speed anything up?

Basically there are two values on the report so they are now saying it is not worth what they offered as 20% undervalued, yesterday were begging EA to sort it out with their mortgage advisor, then today pulled out 😬 it is clearly an error as one figure is wrong, 80/20 property

Lifeandjoy · 28/10/2020 18:52

I had the same worry Willowwood. They absolutely will take it into account. They will also take prevailing market conditions into account. There is a possibility they will downvalue. How long ago was the other property sold?

Willowwood45 · 28/10/2020 18:57

Life and Joy it was sold July 2020. So 2.5 months before we made our offer. But obviously only saw when right move sold places were updated this week.

Lifeandjoy · 28/10/2020 19:10

Similar to our case. the sold price came on in January but it means the house was actually sold Many months before so the market conditions would have been different.

We had the same worry as you. I hate to feel cheated. Do prepare for a down valuation and think carefully what you would do. Would you walk away if the seller does not renegotiate? Are you willing to increase your mortgage and have a higher LTV? Is it your forever home?

It worked out okay for us but we were prepared to walk away.

FrankenNora · 28/10/2020 19:15

Not sure I have explained that very well, because of the shared ownership basically there should be two values on the report with 20% difference, however the difference between the actual two values given in this report is 3% so one is clearly incorrect.

The EA has explained the higher number is wrong but the mortgage lender agent is saying to the now ex buyer that the lower number is wrong, making the valuation £20k short 🤡

FrankenNora · 28/10/2020 19:17

Either way, the report has an error 🤬

FrankenNora · 28/10/2020 19:17

That the ex buyer in their mad rush failed to notice for two months

FrankenNora · 28/10/2020 19:20

Probably because the lower value is the exact same as the agreed sale price...

Lifeandjoy · 28/10/2020 20:01

Franken I too don’t understand. Can you explain it again with the sale amount and the valuation amount? The percentages are confusing out of context.

mumsy27 · 29/10/2020 03:18

purchased shared ownership years ago 50% and sold recently 100% owned.
lenders valued it every time with 100% in mind not less.
unless in your case they valued your share and 100%.

FrankenNora · 29/10/2020 08:38

@mumsy27

purchased shared ownership years ago 50% and sold recently 100% owned. lenders valued it every time with 100% in mind not less. unless in your case they valued your share and 100%.

Yes Mumsy thank you, that is correct however in my case the two numbers should be 20% different.

The surveyor has put two numbers which are only 3% different so clearly one number is definitely wrong on the valuation.

The disagreement is over which number is wrong.

How it has only just been noticed that this is not clear when the buyer has been chasing and chasing, and the buyer then suddenly pulled out.

Not sure what to think or do here.

mumsy27 · 29/10/2020 18:56

Are you selling it through a regular EA or housing association?
Unusual!
It is much easier to purchase the 20% and then sell it 100%.
Not much expenses, it is not a new mortgage, just additional borrowing.

FrankenNora · 29/10/2020 20:56

@mumsy27

Are you selling it through a regular EA or housing association? Unusual! It is much easier to purchase the 20% and then sell it 100%. Not much expenses, it is not a new mortgage, just additional borrowing.

Thanks Mumsy.

Yes through an EA as that is the procedure, no option to do as you have suggested, that would be much easier.

For this particular development you always own 100% but only buy and sell at 80%

Had another discussion with EA today, apparently ex buyer thinks this is all too much hassle and is still in a big rush to buy somewhere so has offered on another property instead, doesn’t make any sense to me 🤪 so probably not being told all the facts here.

However this has happened before with this mortgage provider so any suggestions of how to prevent any more time wasting and lost buyers in the future from nonsensical surveyors?

mumsy27 · 30/10/2020 02:58

buyer got cold feet or still browsing around for better options.

"For this particular development you always own 100% but only buy and sell at 80%"

is it a rural area with more restrictions of owning 100%.
what do you mean by own 100%.
do you pay rent for the remaining 20%
can you sell through HA or do they instruct a specific EA
if you sell through HA buyers are more familiar with shared ownership.
another option is to advertise it as shared ownership so buyers don't get freaked out with the percentage discrepancy.
or advertise it with 80% value you get more viewers

FrankenNora · 30/10/2020 04:24

Yes it is a rural area, well established development and all EA etc in the area are are familiar with it.

There are no issues with the property.

This lender though has rubbish surveyors which has spooked buyers due to their incompetence and obviously I want to try and prevent that happening again, difficult enough to sell at the moment as it is!

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