Down-valuations appear to be on the rise and it is shocking agents and mortgage brokers.
Property professionals have seen an uptick in valuations for banks coming in lower, often with little evidence.
Laura Bairstow, founder of The Mortgage Masters, told the Newspage agency: “We have noticed a definite increase in down valuations, especially in instances where the borrower only has a 5% or 10% deposit. Interestingly, we had a case this week where both the borrower and the estate agent were shocked at the extent of the down valuation so the borrower opted to have an independent valuation of the property and it came in at the asking price, way above what the lender had valued it at.”
Gareth Davies, director of South Coast Mortgage Brokers, said: “It's down valuation central right now. We're seeing a clear uptick in surveyors disagreeing on valuation figures.
“We've had three cases this week where a surveyor has stated a value less than what the property was bought for in 2022, despite no evidence to suggest that this is happening in the respective regions.
“One client was furious with the attitude of the surveyor that came out to his house, as he apparently seemed 'hell-bent' on disagreeing with the estimated value from the second he entered the door. He even said that the place was on the 'lower end of the scale', despite being a beautiful detached four-bed place.”
Steven Hargreaves, adviser at The Mortgage Co, suggested the increase is due to the low number of properties for sale, an upturn in buyers returning to the market and valuers being very cautious based on the past 12-18 months.
He said: “We have seen a number of properties recently with multiple offers and therefore agents inviting 'best and final offers' means that, to secure a property, people feel they have to increase their offer beyond the asking price.
“Interesting times and we expect more down valuations over the coming months unless we have a positive upturn in housing stock or valuers becoming more optimistic, which will not happen.”
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easy answer, stop overvaluing.
"Absolutely right. Agents need to stop placing excessive value on properties. Over the past 18 months, I've seen numerous properties listed at inflated prices, only to be eventually reduced or switched to different agents. If agents incentivise valuers with commissions to list properties, this cycle will persist, undermining the credibility of the agents involved. It's now widely acknowledged in our area which agents are responsible for this trend."
Nonsense. If someone is prepared to pay a price, then it's not over valued!
it is if the institution stumping up the funds isn't prepared to pay it.
The article refers to professionals, but the professional are actually the qualified RICS registered valuers who are conducting their job, and that they are impartial.
They are qualified, RICS memebrs and registered valuers.
Unlike the agents, brokers etc. who have a vested interest, and often will have no qualification or professional membership.
I had an agent last week who had an issue with me, I asked for his professional status, and there was none.
There is no such term as 'downvaluation', that is simply used by those who want to exert pressure on the housing market, and on the valuers.
The examples quoted will be rare, or even made up.
So Mr Hewitt the whole property market is supposed to rely on the experience of an often "wet behind the ears" RICS surveyor in his/or her early twenties, often with very limited experience and who is relying on often outdated pricing evidence to arrive at his/or her conclusions and who has no idea whatsoever of what is actually going on "on the coalface" (unlike good estate agents that do) whilst driving around in his/or her company car ? Oh dear oh dear !
The "I'm right because I have a qualification" argument is so naieve in a market which works on sentiment.
Surveyors are not impartial they are in hock to their insurance providers, and the banks that feed them business.
The "I'm right because I have a qualification" argument is so naieve in a market which works on sentiment.
Surveyors are not impartial they are in hock to their insurance providers, and the banks that feed them business.
Valuers often come from miles away and worse, offer ''comparables'' they have never been to in an area unrelated to the property being sold.
RICS Valuers are not the experts they seem to think they are, agents are in the groun in their own area and offer comparables they may well have visited - or certainly know of - rather than properties picked out at random as used by an RICS Valuer.
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