How to beat a down valuation of your property
It is well documented in the media that in the last 12 months the housing market has taken a turn for the better after the recent disaster the industry experienced. However, a number of mortgage borrowers are finding that the increase in house prices is not been reflected in the valuers assumptions on what they think the property is worth. Consequently, this is putting major hurdles in the way when people are trying to sell their home.
The Estate Agent should be responsible for giving you a valuation
When someone decides to sell their home they generally ask for the opinion of an estate agent when determining the value of a property. Although it is entirely up to you what to market the property the estate agent should have a vast amount of knowledge of the property market in your area. They should know what is currently on the market and its price, how long they have been on the market and what has actually sold and the price it was sold for. This experience should enable the agent to give you an accurate valuation of your property. This is why using a company with no knowledge of your area could be a bad idea as they may give a higher valuation than it is worth. Because of this you may not get any interest in your property or even worse when the mortgage surveyor comes round they may down value your property.
Fast Move has local knowledge throughout the UK
Managing Director of Fast Move Christian Armitage emphasised that in order to sell your property for its true value always use an agent with local knowledge. He stated ‘When selling your property always consider using an agent that has experience of selling properties where your property is situated. Although we are a Nationwide we treat every area of the Country differently think of them as a pocket. Each pocket has agents working in it. They know everything they need to know about that pocket. This is why we have such strong sales statistics. We are currently selling 91% of properties in 4-6 weeks and do not often experience a mortgage down valuations.
Make sure the agent keeps up to date with the valuations in your area
When you put your property on the market there is no guarantee it will sell immediately. If the property has been marketed correctly and at a price that is attractive it should not take too long to sell. However, there are a large proportion of properties that take months. If during this time there are a number of properties in your area that agree a sale and sell for a lower price than yours is advertised for there is a chance the mortgage surveyor will only value your home at the price the other properties sold for, providing the properties are nearly identical. Therefore it is important your estate agent is abreast with the market on a day to day basis.
What are the options to you if your property is down valued?
The media are currently stating that low valuations are hindering the property market and and a large amount of sellers may struggle to overturn the negative valuations
If a buyer does receive a valuation report that is lower than the agreed purchase price the chances are they are going to come back and reduce their offer. It is then up to you as the seller to agree or disagree. You are not legally bound to reduce the price just because the valuer says it is worth less.
1. Is there a reason for the down value. More often than not there is a fundamental reason why the valuer has thought it is not worth the agreed purchase price. For example, they may state the property is damp, or the electrics need updating. If this is the opinion of the valuer they will make an allowance for the improvements that need doing. Ask the estate agent what the problems are. If you do not agree ask a qualified professional relevant to the industry to inspect the defects. If there are no signs of any defects ask for a certificate to confirm all is ok and send this back to the agent or the buyers solicitor. The buyer can then appeal the decision with the lender or just agree with the original purchase price.
2. Agree to the reduction. The easiest thing for you to do would be to reduce the agreed purchase price to the valuers figure. However, this is obviously going to be at a cost. If you do reduce the price always ensure you are still able to move on. Don’t for example leave yourself in a position of negative equity of if you do make sure you have the funds to make up the shortfall.
3. Walk away and instruct your agent to put the property back on the market. If you are going to do this always weigh up the pros and cons. Speak to your solicitor if they have already started work they may charge you a fee to abort the sale. If this is £500.00 and the buyer wants a £500 reduction it may not be a good idea to pull out of the sale.
Sell your house for cash
However, if you do not want the hassle of a buyer who requires a mortgage there are a lot of investors who have the cash therefore are not reliant on a mortgage. There are also companies like Fast Move who also buy properties for cash. As well as their estate agency Fast Move have a team of property buyers called the we buy any house department. They have been buying properties for a number of years and can have the money in your bank in 7 days. Selling your house this way is without doubt the fastest way to sell your house.