Why Has My Property Been Down Valued

Survey Nightmare - Why Has My Property Been Down Valued

Great! You have SOLD your home, only for it to be down valued for mortgage purposes by a surveyor.

You are understandably Angry, Frustrated and Confused.

But why has this happened?

As a surveyor as well as an estate agent I can ensure you know the facts! If the surveyor had found something wrong with the property you could understand that this has to be taken into account in the valuation.

But no repairs have been mentioned, and still the property has been down valued.

The first thing to note is that the surveyor is not acting for the seller. They are not even acting for the buyer. They are acting for the Lender (Building Society or Bank)
They owe a Duty Of Care to the buyer but not to the seller.

For this reason they are by nature cautious and since the recent boom and bust they are even more careful.

• They are concerned about being sued by the lender or buyer, if at a later date it can be proved that they have over valued the property.
• They must justify their valuations with comparable evidence of similar sales in the area over the last say 3 to 6 months.
• They are, in some instances, under pressure from lenders to be over cautious

What Can I Do?

Well, you are not going to like this, there is very little you can do once the valuation has been completed. Lenders will not allow a seller to challenge the valuation.

It would take a change in the law and lenders policy to make surveyors accountable for their actions to the seller, which personally I would like to see.

Challenge It Anyway

I would advise you to challenge the report, you never know, it could work! A good Estate Agent will help you with this process.

Renegotiate

In my experience it may be possible to save the sale by renegotiating the price with the buyer. Some buyers can afford the shortfall, or some of it at least, and with the sellers help reach a new compromise price. This is not always possible but your Estate Agents help will be invaluable during this process.

Re advertise

Failing to reach a compromise price, you may be left with no other option but to re market your property. Again, your Estate Agent should have other leads to follow up if they are doing their job properly.

Frustratingly, another surveyor may value the property at the agreed sale price. But you also run the risk of being down valued again, or even the same surveyor valuing again.

Be Prepared

• Can your Estate Agent support your asking price with comparable information of similar properties that have been SOLD recently?
• Did your Estate Agent provide this at the time you instructed them? 
• Did you do any research on Rightmove or Zoopla regarding the value of your home?

Some sellers commission their own independent valuation report from a Chartered Valuation Surveyor.

A recent report from Rightmove states that only 7% of buyers are paying more than the asking price and the vast majority are paying less than the initial asking price.

Ultimately the successful sale of your property will depend on Qualified Honest Advice.

No sale is perfect, but it is how we support you through the process that makes a difference. Our agency is built on a tradition of trust.

Email us today alan@alanbatt.co.uk with your property questions, and let us help you open the door to your future home.