Valuation on homebuyers report

[hopefully2021]

FTB here, I've just got my homebuyers report back - the surveyor valued the property £10k less than the purchase price we have agreed, would this concern you?

I’m on a private estate agents Facebook group, I’m not an estate agent but so deal with them for other reasons, there has been lots of concerned posts about this and there seems to be two trains of thought, first, the land registry is backed up and the rise in house prices isn’t up to date with current market prices and will catch up. Surveyors and mortgages companies do look at sold prices for a guide.

Second is in some areas the prices are inflated due to demand outstripping the true market value, again they think it’ll level but more risky and has caused quite a few issues with mortgage offers.

it wouldn't concern me but it will impact on how much they are willing to lend. Can you afford to make up the shortfall?

Our mortgage is already approved on the amount agreed as the bank done their own valuation, I've just done the homebuyers report for my own piece of mind on the condition of the property but the surveyor included a valuation and it just surprised me a bit that's all and was wondering if it's normal to be lower

in that case i wouldn't worry at all

Thank you @korawick12345

There is something called ‘Red Book valuations’ which tend to always be lower than Estate Agents asking prices and often the final sum raised. This happened when we sold our last property, the Red book Valuation obtained for Probate was considerably lower than the final sum raised, and the Agents asking price was was almost 50k higher. It may have been more of a problem if it had not been for the buyers wanting to take advantage of the Government reduction stamp duty offer and needing to complete before this ended.

In your case, maybe the lower valuation had been due to the Surveyor’s Red Book valuation being used for this purpose, rather than the current Market value.

Thank you!