Reduced Completion Value

[LA3222]

Had the report come on our recent revaluation today and with the stroke of a pen the valuation dude has decided that the 'completed' value of the property is now nearly 10% less than when it was first estimated in Jan 20. That's £50k.

 

Comments on report included delights such as the work has been completed to an 'adequate' standard.

 

McScuse me!

 

Its annoyed me somewhat even though it makes no material difference to life as we are still well within the mortgage limits for what we want to borrow.  What an absolute creature!

[Mr Punter]

Adequate, satisfactory and acceptable are fairly common terms.

 

The £50k reduction in a year is a bit much.  Was any reason given?

[epsilonGreedy]

This is odd, I thought the stamp duty holiday had triggered an upwards rise in property value. I wonder if the banking sector is discounting things ahead of the economic nuclear winter heading our way post Covid.

[Mr Punter]

10 minutes ago, epsilonGreedy said:

This is odd, I thought the stamp duty holiday had triggered an upwards rise in property value. I wonder if the banking sector is discounting things ahead of the economic nuclear winter heading our way post Covid.

 

I have just had a lender valuation on an investment property we just bought where I thought I had overpaid a bit and it came back valued at the sale price.

[LA3222]

Three valuations in the space of a year, including the 'off plans' initial valuation, all done by the same dude, this one £50k less. Its kind of annoyed me and I'm itching to question why but the rational part of me is saying leave well alone, it doesn't affect our borrowing and ultimately the 'true' value wont become apparent until everything is done and dusted. That is when it matters as I shift from self-build mortgage to a normal one.

 

Still annoys me though.

[MikeGrahamT21]

House prices up 8.5% on average in the last year, so your valuation is probably near on 20% lower than it was

[Andrew]

9 minutes ago, LA3222 said:

Three valuations in the space of a year, including the 'off plans' initial valuation, all done by the same dude, this one £50k less. Its kind of annoyed me and I'm itching to question why but the rational part of me is saying leave well alone, it doesn't affect our borrowing and ultimately the 'true' value wont become apparent until everything is done and dusted. That is when it matters as I shift from self-build mortgage to a normal one.

 

The valuer who valued our build, twice, was a complete bell-end (sorry I really can't find a more accurate term). He'd been everywhere and done everything, the self-build he did was bigger, more expensive, more complicated, blah de blah. He valued the completed build £75k less than my conservative estimate and £50k less than the recently sold new-build house across the road with 2 fewer bedrooms on a smaller plot which had been built to a lesser standard. He was based 30 miles away and had no clue about the local market. At the end of the day the valuation was enough to get us the borrowing we wanted so I just bit my tongue rather than start kicking up a fuss. 

 

The second time he came to value mid-build he just asked me what my rough guess was of the cost to complete and he just put in a current valuation of his original completed valuation minus my guesstimate of the cost to complete! The valuation bit took him 2 minutes but he was on site for over an hour telling me of his greatness. 

[nod]

3 hours ago, LA3222 said:

Had the report come on our recent revaluation today and with the stroke of a pen the valuation dude has decided that the 'completed' value of the property is now nearly 10% less than when it was first estimated in Jan 20. That's £50k.

 

Comments on report included delights such as the work has been completed to an 'adequate' standard.

 

McScuse me!

 

Its annoyed me somewhat even though it makes no material difference to life as we are still well within the mortgage limits for what we want to borrow.  What an absolute creature!

I wouldn’t worry to much 

Our daughter has just bought a 4 year old home 3340

Redrow are still building the same type on the estate 375

Valuation came back at 320

She rang the valuer and he said That's my opinion Then admitted he had done the valuation via Google earth 

Covid of course 

 

If you where to market the property The  missing numbers and some would miraculously go back on

 

[nod]

2 hours ago, Andrew said:

 

The valuer who valued our build, twice, was a complete bell-end (sorry I really can't find a more accurate term). He'd been everywhere and done everything, the self-build he did was bigger, more expensive, more complicated, blah de blah. He valued the completed build £75k less than my conservative estimate and £50k less than the recently sold new-build house across the road with 2 fewer bedrooms on a smaller plot which had been built to a lesser standard. He was based 30 miles away and had no clue about the local market. At the end of the day the valuation was enough to get us the borrowing we wanted so I just bit my tongue rather than start kicking up a fuss. 

 

The second time he came to value mid-build he just asked me what my rough guess was of the cost to complete and he just put in a current valuation of his original completed valuation minus my guesstimate of the cost to complete! The valuation bit took him 2 minutes but he was on site for over an hour telling me of his greatness. 

That’s probably the most accurate description we are going to get ?

[AliMcLeod]

I've heard anecdotal stories that valuations for mortgages lenders are being set lower in the expectation that the number of sales could reduce once the stamp duty holiday ends, resulting in the prices falling. 

 

It's just a way for the lenders to reduce their risk a bit - as others have said, the true value will appear if/when a house goes on the market.

Edited February 18, 2021 by AliMcLeod

[Bored Shopper]

who did the valuation?

We've had nightmarish experience with eSurv - they changed their mind and severely undercut the valuation in the middle of the project (for absolutely no reason as NOTHING changed since the original plans were submitted). This resulted in us getting the next drawdown on the mortgage a month later than the schedule (after a massive scandal with the building society). Luckily we've had some savings to keep us going.

On completion, same firm issued a valuation which is c. £75k-85k lower than similar newbuild properties in the area. We've spoken to a local estate agent who was keen to get us sold, and the difference in his valuation and the eSurve was staggering. We had no option as eSurv was contracted with our mortgage provider and we could not use a proper alternative valuator.

THe under-valuation cost us a good interest rate deal when we started re-mortgaging on completion - I so hate the guys I will continue shouting from [freshly tiled] rooftops for people to steer clear as much as they can.