There have been some ‘massive down-valuations’ in recent weeks, say mortgage brokers.
In one case, two surveyors valued the same property for different lenders – with a £100,000 difference.
Trade title Mortgage Solutions asked three of its readers for their views.
Aaron Strutt, at Trinity Financial, said there have been some massive down-valuations mainly in London but increasingly across the country.
He said that brokers using the biggest lender do not know if a human or a computer will value a property.
He said surveyors are cautions, while Automated Valuation Models (AVMs) are relying on limited data.
Strutt also said it was “difficult to understand how a property can be down-valued without a valuer visiting the property”.
Joe Arnold, of Arnold & Baldwin Chartered Surveyors, said that some estate agents are over-valuing in order to win instructions. He also said that in Scotland, Home Reports have been very successful and the rest of the UK should introduce them.
He said: “That way every property would have a survey and valuation undertaken before it comes to the market.”
Greg Cunnington, of Foxtons’ brand Alexander Hall, said that there is a lack of consistency on valuations.
He said: “There seems to be an increase in an initial down valuation from one surveying firm, then, after a new application with another lender, a different surveyor visits the property for the new lender and values the property at a different figure. The difference here can be significant.
“We had an example last week of more than a £100,000 difference between two surveyors on the same property.”
It is impossible to accurately value a property without an inspection. Drive by and AVM’s are a nonsense and of very limited use. They harm the reputation of the property profession.
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The best people to value your property has got to be local estate agent as they should know what properties in the area are selling for and presumably have people on their books looking for properties in their area if they don’t they should not be in the business.
I had two local estate agents value my property and when the rics survey which by the way I never saw did their survey they said it was worth £10k less by looking inside and out they also came from outside the area how do they make a judgment on that basis or is it just a ruse to get the price down as the buyer pays for the rics survey?
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Woodie0636
Whilst I am totally sympathetic to your situation, yours is not, I would respectfully suggest, a ‘comparable’ case.
For those that have missed your previous postings here and on The Arena you believe you have been stiffed by a “quick-buy” firm.
As I have said previously I would severely doubt whether the “surveyor” who inspected your property is actually RICS – but you should check that for yourself on the RICS website, as if not you may be able to claim you were a victim of fraud.
As I’ve said previously – a theme worth an article of its’ own.
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Thanks pee bee I have requested the report from the quick buy firm and they say they will not release it to me only to a body like trading standard have also asked citizens advice and they say it is out side their remit .am looking into finding a solicitor to take up my case will keep you all posted.
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Lenders have always used down vals to manage LTV lending.
Big bold marketing headline figures says we will lend 90%. However after a 10% downval real LTV is only 81%. Now they have the buffer they want in a falling market while still appearing to offer industry leading LTV. The old smoke and mirrors.
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A driveby valuation uses the Darrabee method. Valuer pulls up outside, winds down his window, takes a look and says “Darr’ a’ bee £500,000!
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“We had an example last week of more than a £100,000 difference between two surveyors on the same property.”
On a purchase/remortgage figure of how much?
£200k? Someone wants to go take their RICS-accredited heid for a well-overdue 5h!te.
£2 million? ‘Within ‘tolerance’ would be the phrase of the moment
£20 mill? Who gives a fuppenny at that kind of level. Stick it on the Platinum Card.
It’s the five grand knocking-jobs at £100k and below that chuff up most sales and associated chains.
And the feeling, it seems, is that it’s only gonna get worse…
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£100,000 difference on what value of property? If two valuers inspected a £1.5M+ property without any prior knowledge of the amount that the purchaser was proposing to pay, and without access to Rightmove or other sources of comparables, I wouldn’t be at all surprised if their opinions to be £100,000 apart.
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“…without any prior knowledge of the amount that the purchaser was proposing to pay, and without access to Rightmove or other sources of comparables, I wouldn’t be at all surprised if their opinions to be £100,000 apart.”
But they would have prior knowledge of the amount the proposed sale had been agreed at… and they would have access to RM and other sources of comparables.
Sorry, james48 – but your comment simply doesn’t stack up – on those two points alone for starters.
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Oh yea! Good point PeeBee!
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Get ready for more asset stripping from banks who securitise most lending by selling repayment schedules outside to SPV’s. Main rule is “BANKS DON’T LEND”
There is now lots of evidence of banks making promises, to abuse positions of trust, to then gin BMV and asset strip. Google “Hansard” and the names of “main banks” to see whats being discussed in the House of Commons last and this year.
PIE could get a great interview with former Hunters guru MP Kevin Hollinrake who released the Turnbull Report that showed fraud at Lloyds Bank where 6 were jailed for 47.5 years. The report showed that banksters hd orchestrated collapse and asset stripped victims. The report is public domain on the Governments APPG Banking website in 2 x pdf downloads: http://www.appgbanking.org.uk/resources/
There is a good video trailer to release later this year that features Noel Edmonds and others: https://vimeo.com/272106674
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