Under valuing property

[EINSIGN]

http://news.bbc.co.uk/1/hi/uk/8191007.stm

Last week my house was valued at £260k with a stated rebuild cost of £370k!? The actual value is around £400k. I have been on the phone every day trying to find out how this mistake was made, and the mortgage advisor keeps fobbing me off, saying he cannot get hold of the valuer. Who should I contact to take legal advice over this?

[Dupont666]

EINSIGN said:

http://news.bbc.co.uk/1/hi/uk/8191007.stm

Last week my house was valued at £260k with a stated rebuild cost of £370k!? The actual value is around £400k. I have been on the phone every day trying to find out how this mistake was made, and the mortgage advisor keeps fobbing me off, saying he cannot get hold of the valuer. Who should I contact to take legal advice over this?

whats the issue?

mortgage?

negative equity?

pride?

compensation culture?

[Fittster]

Why are you concerned about the value?

[EINSIGN]

Fittster said:

Why are you concerned about the value?

Trying to remortgage, comparable houses in my area on the market for £450k. Even if mine was valued at £375k I would be happy as I appreciate the current market, however there has clearly been a mistake here!

[Nickyboy]

I had mine for sale 2 years ago but decided to reject 3 offers as i had decided to stay put, on remorgaging a month or so later Abbey valued it at nearly £30k less than the offers i had.
As i result they claim i am close to a 100% mortgage whereas before i was nowhere near. Even now the place 5 doors down which is identical recently sold for £40k more than they valued mine at.

[evil len]

EINSIGN said:

Trying to remortgage, comparable houses in my area on the market for £450k. Even if mine was valued at £375k I would be happy as I appreciate the current market, however there has clearly been a mistake here!

Are you looking to borrow more than 260k ?

[EINSIGN]

evil len said:

EINSIGN said:

Trying to remortgage, comparable houses in my area on the market for £450k. Even if mine was valued at £375k I would be happy as I appreciate the current market, however there has clearly been a mistake here!

Are you looking to borrow more than 260k ?

Yes, 286k

[bonsai]

EINSIGN said:

evil len said:

EINSIGN said:

Trying to remortgage, comparable houses in my area on the market for £450k. Even if mine was valued at £375k I would be happy as I appreciate the current market, however there has clearly been a mistake here!

Are you looking to borrow more than 260k ?

Yes, 286k

Even if you weren't though, your LTV % at that current valuation will result in much higher rates so you're rightly pissed off.

[EINSIGN]

Any mortgage advisors or solicitors on here that could possibly help me? I have been trying for the past two weeks now to get something in writing with no response at all. This is all with NatWest PC by the way.

[Soovy]

EINSIGN said:

http://news.bbc.co.uk/1/hi/uk/8191007.stm

Last week my house was valued at £260k with a stated rebuild cost of £370k!? The actual value is around £400k. I have been on the phone every day trying to find out how this mistake was made, and the mortgage advisor keeps fobbing me off, saying he cannot get hold of the valuer. Who should I contact to take legal advice over this?

You think it's worth £400k. It's only worth what someone will pay for it. Today. And in order to value it today you have to look at how much a lender will get for it at auction with no reserve (for lending purposes of course).


Valuers are being sensible about what values they place on property now because if they overvalue they will be sued by lenders for shortfalls.

Houses have been overvalued for YEARS by valuers in order to fuel the mortgage boom. I'm afraid you have just been made aware that the good times are over. A valuer is entitled to value your house as he sees fit.

I fail to see why you think a solicitor will help you. Are you planning to try to "force" a valuer to value your property to suit your agenda, because that simply will not happen - you can't demand that they value it as you want them to. Not any more at least!!!!!


If £260k is less than you owe (which I assume is the case) then you will have to stay as you are and pay your way out of negative equity. I'm afraid it's as simple as that.

Edited by Soovy on Tuesday 11th August 11:08

[SJobson]

It does look like a mistake though - perhaps the valuer transposed the rebuild cost and market value figures.

Should be easy to sort out by calling them. If not, speak to the lender and point out that it's a manifest error. If that doesn't work, find a different lender.

[Tony*T3]

Soovy said:

EINSIGN said:

http://news.bbc.co.uk/1/hi/uk/8191007.stm

Last week my house was valued at £260k with a stated rebuild cost of £370k!? The actual value is around £400k. I have been on the phone every day trying to find out how this mistake was made, and the mortgage advisor keeps fobbing me off, saying he cannot get hold of the valuer. Who should I contact to take legal advice over this?

You think it's worth £400k It's only worth what someone will pay for it. Today.

Valuers are being cautious because if they overvalue they will be sued by lenders. Houses have been overvalued for YEARS by valuers in order to fuel the mortgage boom.

I'm afraid you have just been made aware that the good times are over.



A valuer is entitled to value your house as he sees fit. I fail to see why you think a solicitor will help you. Are you planning to try to "force" a valuer to value your property to suit your agenda, because that simply will not happen.

If £260k is less than you owe then you will have to stay as you are and pay your way out of negative equity.

I'm afraid it's as simple as that.

Edited by Soovy on Tuesday 11th August 11:00

What rubbish.

I value your Porsche at 16 quid. Its what i'm prepared to pay for it right now. you have no opinion on its value as youre the owner and you have no right to compare it to similar Porsche's that are for sale in your area.

Do you want my 16 quid or are you going to seek a second opinion?

[Soovy]

Tony*T3 said:

Soovy said:

EINSIGN said:

http://news.bbc.co.uk/1/hi/uk/8191007.stm

Last week my house was valued at £260k with a stated rebuild cost of £370k!? The actual value is around £400k. I have been on the phone every day trying to find out how this mistake was made, and the mortgage advisor keeps fobbing me off, saying he cannot get hold of the valuer. Who should I contact to take legal advice over this?

You think it's worth £400k It's only worth what someone will pay for it. Today.

Valuers are being cautious because if they overvalue they will be sued by lenders. Houses have been overvalued for YEARS by valuers in order to fuel the mortgage boom.

I'm afraid you have just been made aware that the good times are over.



A valuer is entitled to value your house as he sees fit. I fail to see why you think a solicitor will help you. Are you planning to try to "force" a valuer to value your property to suit your agenda, because that simply will not happen.

If £260k is less than you owe then you will have to stay as you are and pay your way out of negative equity.

I'm afraid it's as simple as that.

Edited by Soovy on Tuesday 11th August 11:00

What rubbish.

I value your Porsche at 16 quid. Its what i'm prepared to pay for it right now. you have no opinion on its value as youre the owner and you have no right to compare it to similar Porsche's that are for sale in your area.

Do you want my 16 quid or are you going to seek a second opinion?

The sadness is that you're right about the car. Nevermind.

Maybe the valuers are giving their honest opinion about what it's worth, given the current market, taking account of a substantial haircut for the high levels of defaults and sales at auction.

[Soovy]

EINSIGN said:

Soovy said:

EINSIGN said:

http://news.bbc.co.uk/1/hi/uk/8191007.stm

Last week my house was valued at £260k with a stated rebuild cost of £370k!? The actual value is around £400k. I have been on the phone every day trying to find out how this mistake was made, and the mortgage advisor keeps fobbing me off, saying he cannot get hold of the valuer. Who should I contact to take legal advice over this?

You think it's worth £400k It's only worth what someone will pay for it. Today.

Valuers are being cautious because if they overvalue they will be sued by lenders. Houses have been overvalued for YEARS by valuers in order to fuel the mortgage boom.

I'm afraid you have just been made aware that the good times are over.



A valuer is entitled to value your house as he sees fit. I fail to see why you think a solicitor will help you. Are you planning to try to "force" a valuer to value your property to suit your agenda, because that simply will not happen.

If £260k is less than you owe then you will have to stay as you are and pay your way out of negative equity.

I'm afraid it's as simple as that.

Edited by Soovy on Tuesday 11th August 11:00

Absolute nonsense, are you telling me valuers never make mistakes? Apparently the guy that did my survey came from a different county!

Mine is one of around 10 houses in 200 that is much larger than all the rest (double the size) 5 bedrooms, 3 bathrooms, 1850’s Victorian high ceilings etc. the AVERAGE sale in my area is around £250k for little terrace houses.

If on the market a year ago it would have been up for £450k. I am not saying now it would be worth anything near that! At even £375k I would be happy.

Based on what has bought/sold in my area this is clearly wrong, I am not arguing about just a few thousand pounds here, but around £150k difference!

Remember he has also stated a REBUILD cost of £370k, which is also wrong. Maybe he got the figures the wrong way round?

Now I would appreciate it if someone could actually answer help if possible. Opinions without knowing the facts are really not much help.

Thanks!

So, to summarise.

1. You think the valuer has made a mistake. Sack him and get someone who knows what they're doing.

2. In relation to your question about "whether a solicitor can help" - if you mean can you force the valuer to change the valuation if you don't like it, then the answer is no.

[Chaffs]

We had the same recently from 2 estate agents. Ours is a Victorian semi, 3 bed, 3 receptions and big for what it is with 100ft garden, new kitchen, new bathrooms, all oak flooring. We'd looked on Rightmove, lots of really nasty 60s stuff in need of lots of work at the 280k mark, with a few nicer properties through to 320k. Two estate agents, both spotty, both tie knots the size of their necks, £280k .. Now if that is market value then fair enough, but given what else is on the market, I don't believe them. The only thing I can think is that they are after low prices, so there is perceived good value and they get quick sales so they get the throughput and cashflow.

[Davi]

Soovy said:

Maybe the valuers are giving their honest opinion about what it's worth , given the current market, taking account of a substantial haircut for the high levels of defaults and sales at auction.

gems like that need to go in the Sean Connery thread.

[Tony*T3]

Soovy said:

Tony*T3 said:

Soovy said:

EINSIGN said:

http://news.bbc.co.uk/1/hi/uk/8191007.stm

Last week my house was valued at £260k with a stated rebuild cost of £370k!? The actual value is around £400k. I have been on the phone every day trying to find out how this mistake was made, and the mortgage advisor keeps fobbing me off, saying he cannot get hold of the valuer. Who should I contact to take legal advice over this?

You think it's worth £400k It's only worth what someone will pay for it. Today.

Valuers are being cautious because if they overvalue they will be sued by lenders. Houses have been overvalued for YEARS by valuers in order to fuel the mortgage boom.

I'm afraid you have just been made aware that the good times are over.



A valuer is entitled to value your house as he sees fit. I fail to see why you think a solicitor will help you. Are you planning to try to "force" a valuer to value your property to suit your agenda, because that simply will not happen.

If £260k is less than you owe then you will have to stay as you are and pay your way out of negative equity.

I'm afraid it's as simple as that.

Edited by Soovy on Tuesday 11th August 11:00

What rubbish.

I value your Porsche at 16 quid. Its what i'm prepared to pay for it right now. you have no opinion on its value as youre the owner and you have no right to compare it to similar Porsche's that are for sale in your area.

Do you want my 16 quid or are you going to seek a second opinion?

The sadness is that you're right about the car. Nevermind.

Maybe the valuers are giving their honest opinion about what it's worth, given the current market, taking account of a substantial haircut for the high levels of defaults and sales at auction.

Valuations go wrong. I had a property valued for a secured loan (during the last recession). Turned out the valuer didnt even vist the property. Got the area slightly confused, vlaued the house at 40% less than we paid for it some years before. Challeneged the vlaue by providing proof (resent sales of almost identical houses) and he admitted to not even have seen the house.

However, what you said about employing a solicitor etc I obviosuly agree with.

I have also heard that some mortgage sellers are getting very very pissed off with over cautious valuations due to the fear of being sued, and this is whats causing more stagnation in money lending. People want to borrow, but cant.

to the OP, Force a second opinion. A valuation is just an opinion.

Valuation by an Estate Agent is just a made up number and has no basis is reality. Best ignored.

Edited by Tony*T3 on Tuesday 11th August 11:29

[wiffmaster]

Soovy said:

Maybe the valuers are giving their honest opinion about what it's worth, given the current market, taking account of a substantial haircut for the high levels of defaults and sales at auction.

Does the fact that the rebuild cost on a supposedly £260k property is stated as being £370k, not suggest that they have maybe made a mistake.

It's quite clearly not what "they think it's worth". There is no way that they could justify valuing it at over £100k less than similar properties which have just sold on the open market, simply on the basis of "the current climate".

[EINSIGN]

Soovy said:

EINSIGN said:

Soovy said:

EINSIGN said:

http://news.bbc.co.uk/1/hi/uk/8191007.stm

Last week my house was valued at £260k with a stated rebuild cost of £370k!? The actual value is around £400k. I have been on the phone every day trying to find out how this mistake was made, and the mortgage advisor keeps fobbing me off, saying he cannot get hold of the valuer. Who should I contact to take legal advice over this?

You think it's worth £400k It's only worth what someone will pay for it. Today.

Valuers are being cautious because if they overvalue they will be sued by lenders. Houses have been overvalued for YEARS by valuers in order to fuel the mortgage boom.

I'm afraid you have just been made aware that the good times are over.



A valuer is entitled to value your house as he sees fit. I fail to see why you think a solicitor will help you. Are you planning to try to "force" a valuer to value your property to suit your agenda, because that simply will not happen.

If £260k is less than you owe then you will have to stay as you are and pay your way out of negative equity.

I'm afraid it's as simple as that.

Edited by Soovy on Tuesday 11th August 11:00

Absolute nonsense, are you telling me valuers never make mistakes? Apparently the guy that did my survey came from a different county!

Mine is one of around 10 houses in 200 that is much larger than all the rest (double the size) 5 bedrooms, 3 bathrooms, 1850’s Victorian high ceilings etc. the AVERAGE sale in my area is around £250k for little terrace houses.

If on the market a year ago it would have been up for £450k. I am not saying now it would be worth anything near that! At even £375k I would be happy.

Based on what has bought/sold in my area this is clearly wrong, I am not arguing about just a few thousand pounds here, but around £150k difference!

Remember he has also stated a REBUILD cost of £370k, which is also wrong. Maybe he got the figures the wrong way round?

Now I would appreciate it if someone could actually answer help if possible. Opinions without knowing the facts are really not much help.

Thanks!

So, to summarise.

1. You think the valuer has made a mistake. Sack him and get someone who knows what they're doing.

2. In relation to your question about "whether a solicitor can help" - if you mean can you force the valuer to change the valuation if you don't like it, then the answer is no.

1. Sack who? Do you think buyers get a choice of who their valuers are?

2. So there is no governing body or persons that can be contacted to reprimand these people for their failures?

[SJobson]

As an aside, I'm completing a house purchase this Friday. The valuation report for the mortgagee gave a range of figures, within which fell the price I am paying. The range referred to values for 'properties of this type in this area'.

The property is unique - it is a thatched cottage, at least 150 years older than anything in the vicinity and the only thatched building in the area. Always going to be hard to value accurately as a result, but it is uncanny how close the valuer got to the price I'm paying. I am thankful he did to be honest!