What if there aren't any similar properties to compare my valuation to?
A simpkins from New Milton, hampshire
14 August 2017
Buying a house questions and answers
The surveyor's valuation of the house we are currently trying to purchase came back £45k less than our offer and £55k less than the asking price. The estate agent sent through comparables, which were of properties such as bungalows and a property on an estate with a garage. The property we are purchasing is an end-of-terrace, with a small garden and there are no similar properties on the road, only flats and considerably larger properties, so what can I do?
Unfortunately you seem to be in a tricky situation. Ultimately a property is worth what someone is willing to pay on any given day. However, when purchasing with a mortgage the lender will want to make sure they are not going to lose money if the worst happens.
The comparables that the estate agents have sound like they wouldn’t be applicable to the property. When there are no direct comparables in the vicinity then a 'price per square metre' may be the best method of comparable evidence, or stretching the search area and applying the local knowledge to readjust the figures.
In terms of what you can do there are not many options, unfortunately. The surveyor is the trained professional so I would always bear that in mind and you do not really want to be paying more than the property is worth. The vendor clearly wants the most for their property however it is more than likely that this will happen again if a new buyer was to be found, unless they were purchasing in cash.
See if the estate agents have made the seller aware of this issue.
The only options really are to try and re-negotiate with the seller, settle the difference with cash or to contact the mortgage lender and see if they are willing to send out another surveyor to see If they come to the same conclusion. This will obviously incur further expense and is likely to have the same result.
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Very thorough, and a prompt reply to my query on an issue contained in report
Terence on 06/02/2020