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Down Valuation on property we have under offer

The house I am looking to purchase has just been valued by our mortgage lender for £55,000 less thaN what our offer was agreed to. What should I do?

Asked on Jul 4 2012, House Prices in Worcester Park | Report content

Answers (8)

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  • Put in a lower offer

    Answered on Jul 5 2012, Report content
  • Ask for a copy of the valuation - you have paid for it. you need to ask specific questions as to why the property is valued 55k less, are there any specific issues. If there is no reason given you could compare to similar properties in the area and also use the zoopla web site to give you a rough idea. It may be at the end of the day the valuation is correct and the asking price was too high, on the other hand a valuation for mortgage purposes may be lower as the valuer tries to cover his reputation in a declining market.Unfortunatley the lender will usually only lend a percentage of the lower of the value or asking price.You could try to negotiate with the vendor, but unless the property has been marketed well over value, £55k is a big ask but its worth investigation.

    Answered on Jul 6 2012, Report content
  • Thank you for your responses. There are clear comparables that house having been selling for what we have offered. The lender will not disclose who the surveyor was that they instructed nor release the report. Asking to renegotiate £55k is a VERY TALL order. Would you accepted £55k below the asking price on a property you were selling. Its very frustrating as the comparables are proof that houses are selling well in that area.

    Answered on Jul 6 2012, Report content
  • Surely you have a right to know the name of the company who surveyed? we are experiencing similar problems but are on the other end - our house has been undervalued!

    Answered on Jul 6 2012, Report content
  • The only other option is to wait for an different surveyor, we have had to instructed a different mortgage provider.

    Answered on Jul 6 2012, Report content
  • I agree if similar houses in same condition have been selling recently for the sum you have offered, then it is unlikley the vendor will reduce the price and the valuation you have paid to be undertaken needs explanation.Property valuation is not an exact sience and a number of factors are taken into account, especially recent sale prices achieved in the area, condition and location of the property.If you have paid for the valuation you are are entitled to see it unless the lender made it clear that this was not possible whatever the outcome.I would be taking this up at a senior level with the morgage provider who will be subject to compliance including being transparent and honest with their customers.The fact that you are not being given a reason for the difference in value, not allowed a copy of the valuation, I assume this was not explained when you commisioned it and the difference is as much as £55k sounds very suspicious.Initially the mortgage provider is likley to come up with the excuss that as they instructed the valuer the valuation is addressed to them and therefore you can not see it.You paid for it and they choose the valuer as they want one who is on their list of approved valuers but at the end of the day it is for your benefit as much as theirs and unless they made clear that it would not be divulged to you prior to taking your money you are entilled to see it. Depending on the type of valuation it could contain vital information regarding the condition of the property which you would be entilled to know about even if the valuation matched the price offered.Make some noise, demand to speak to the manager, put forward your case, ephisise the points I have raised.You need to know the answers.Don't give up, my considerable experience in these matters makes me very suspicious!!!

    Answered on Jul 6 2012, Report content
  • Just a further thought, if the lender won't let you see the valuation/explain the content or let you speak to the valuer in order that you can understand the £55k difference and this condition was not made clear from the outset, I would ask that they refund your valuation fee and any other upfront charges and you consider a different lender. Or you could ask for another valuation to be undertaken with a different valuer, the cost being covered by the lender.At the end of the day the valuation needs explaination re the £55k diference as even if you could afford to proceed with a smaller mortgage you still need to know why the difference as you could be making the biggest investment in your life without knowing the full facts.Just to walk away from this lender without a refund or revaluation without cost to you could leave you out of pocket as if there is a genuine reason for the £55k difference it will show up on a new valuation. Good luck

    Answered on Jul 6 2012, Report content
  • If the issue is with the valuation itself, you can ask the valuer to look at it again but you will need to supply evidence and this MUST be sold evidence for similar properties. Under offer and asking prices will not help.

    Answered on Jul 7 2012, Report content

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