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Valuers value house at less than 40k that sale agreed price

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  • 13-08-2013 4:29pm
    #1
    thebourke
    Registered Users Posts: 1,311 ✭✭✭


    I went sale agreed on a house in soutside Dublin about 3 weeks...the valuers valued the house at nearly 40k less than the price I went sale agreed on...
    has this happened to anybody recently....i am still waiting on the report from the valuers...advice on what to do?


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    #2
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Go back to the Estate Agent that sold you the property and inform him of the valuation and try and get the price reduced. Also have a look at the property register to see what similar houses have sold for in the area.


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    #3
    m5ex9oqjawdg2i
    Closed Accounts Posts: 11,221 ✭✭✭✭m5ex9oqjawdg2i


    Why did you get it valued after you went sale agreed? Just asking. If you offered X for the house, this is what the house was worth to you?

    40K is quite a lot of money if you are looking for a short - medium term investment. But if this house is somewhere you plan on living for a long time, is 40K worth losing the house over? Just something to think about.


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    #4
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    Dorothy Wide Self-defense wrote: »
    Why did you get it valued after you went sale agreed? Just asking. If you offered X for the house, this is what the house was worth to you?

    40K is quite a lot of money if you are looking for a short - medium term investment. But if this house is somewhere you plan on living for a long time, is 40K worth losing the house over? Just something to think about.

    The bank would have insisted on the valuation. They need to know that the security they hold on the mortgage (the house itself) would clear the loan.

    OP, has the bank advised if they are still willing to offer the same level of mortgage to you in light of the valuers report?


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    #5
    thebourke
    Registered Users Posts: 1,311 ✭✭✭thebourke


    yes they are still willing to lend the money ...but there is no way way i am going to pay 40k over the valuation price....i will need to get back onto the vendor's estate agent and see what he says..


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    #6
    coylemj
    Registered Users Posts: 25,394 ✭✭✭✭coylemj


    thebourke wrote: »
    yes they are still willing to lend the money ...but there is no way way i am going to pay 40k over the valuation price....i will need to get back onto the vendor's estate agent and see what he says..

    That's not necessarily the best attitude to take. You were prepared to pay whatever you agreed so that number ipso facto is the market value of the house.

    In this day and age the bank are ultra-conservative about loans for property and their surveyors know this so there is downward pressure on valuations, its a fact of life.

    It does not mean that you are paying too much, it just means that the banks are in a 'following' mode on prices so for the foreseeable future they will always undervalue property having been severely burnt in the boom.


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    #7
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    coylemj wrote: »
    That's not necessarily the best attitude to take. You were prepared to pay whatever you agreed so that number ipso facto is the market value of the house.

    In this day and age the bank are ultra-conservative about loans for property and their surveyors know this so there is downward pressure on valuations, its a fact of life.

    It does not mean that you are paying too much, it just means that the banks are in a 'following' mode on prices so for the foreseeable future they will always undervalue property having been severely burnt in the boom.


    If the bank told me that the house was worth 40 k less than the agreed price I'd be quickly calling the auctioneer and politely informing them that the offer is reduced by 40 k explaining why.
    They can either like it or lump it.
    I'm not going to be buying anyway if its not reduced by 40k.

    For all we know the op could have gotten into a bidding war with a phantom bidder.


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    #8
    Pablo Sanchez
    Closed Accounts Posts: 1,207 ✭✭✭Pablo Sanchez


    Scortho wrote: »
    If the bank told me that the house was worth 40 k less than the agreed price I'd be quickly calling the auctioneer and politely informing them that the offer is reduced by 40 k explaining why.
    They can either like it or lump it.
    I'm not going to be buying anyway if its not reduced by 40k.

    For all we know the op could have gotten into a bidding war with a phantom bidder.

    I agree with coylemj. Dont forget that the valuer is also an auctioneer- there is no exact science to valuing residential property- especially in a rising market. Its only worth what someone is willing to pay- i know im repeating it but its very true.

    Let us know how you get along!


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    #9
    shanered
    Registered Users Posts: 1,117 ✭✭✭shanered


    The value given by the valuer is his professional opinion, it does not reflect open market as opinion of value is subjective.
    Such as beauty is in the eye of the beholder.


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    #10
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    Pablo Sanchez wrote: »
    I agree with coylemj. Dont forget that the valuer is also an auctioneer- there is no exact science to valuing residential property- especially in a rising market. Its only worth what someone is willing to pay- i know im repeating it but its very true.

    Let us know how you get along!

    My point was more to do with the fact that if bank and savings will only give 40k less than what you offered, there's nothing wrong with going back to the agent look here's what's after happening, id still loke to buy it but can only offer 40 k less than original accepted offer.
    If he says no, well I wasn't going to be able to buy anyway, but if he says yes, happy days.
    A contract hasn't been signed to say it was sold so its not like you'd be breaking a contract.


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    #11
    thebourke
    Registered Users Posts: 1,311 ✭✭✭thebourke


    i informed the estate agents about the valuation price of 40k below the sale agreed price..they disputed the figure and want me to get a second valuation from a different company!


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    #12
    coylemj
    Registered Users Posts: 25,394 ✭✭✭✭coylemj


    Scortho wrote: »
    If the bank told me that the house was worth 40 k less than the agreed price I'd be quickly calling the auctioneer and politely informing them that the offer is reduced by 40 k explaining why.
    They can either like it or lump it.
    I'm not going to be buying anyway if its not reduced by 40k.

    There's nothing to stop a cash buyer or someone on a lower LTV (loan to value) from outbidding the OP. You can't operate in an open market with that attitude - letting a third party decide the true value on something you want to buy even if you're prepared to pay more.

    If you adopt the attitude that you refuse to pay more than the value placed on the property by the bank's surveyor then good luck but you won't be buying a house any time soon.

    In the current climate, virtually every valuation carried out for a financial institution is going to be less than true market value, it's an insurance policy by the banks to limit their exposure to market fluctuations in the wrong direction.


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    #13
    thebourke
    Registered Users Posts: 1,311 ✭✭✭thebourke


    i understand that...but to the value of 40,000euro...that is a big difference..


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    #14
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    thebourke

    Lenders will only lend you up to 92% of the lesser of purchase price/valuation so you need to check with them unless of course you are borrowing a smaller amount.
    Have you checked the property register for similar property sold in that area. Are they similar properties for sale in the area?

    Have you received the valuation from the Valuer and have you rang or called to discuss the reasons why he/she thinks its worth 40k less. You paid the valuation fee so you are entitled to an explanation as to why it is valued less than the purchase price agreed. 40k is a big difference.


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    #15
    hfallada
    Closed Accounts Posts: 4,180 ✭✭✭hfallada


    Get a different auctioner to value the house. My neighbour tried to get a reduced on their mortgage interest rate by showing the bank the loan to value had decreased. They choose an auctioneer that had no idea what the **** he was doing and valued the house for €550k a year after the property prices began to fall. Their a near copy of the house for sale up the road in 2013( house has lost something like 55% of their value) which hasnt had a cent spent on its since the 1950s with a AMV of €650k. Meaning the auctioneer had a mess of their valuation.

    Get a different auctioneer to value it and see what they say. No two auctioneers are a like particularly in areas where a certain estate commands a higher price due to the name and quality of the house


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    #16
    thebourke
    Registered Users Posts: 1,311 ✭✭✭thebourke


    i am calling to the bank on Monday to finally get my hands on the valuation report...the auctioneers are basically saying it's that price because of number of rooms and the area...one guy in the auctioneers valued it and then the senior guy in the auctioneers had a second look over it and valued it the same!


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