First Time Buyer Troubles

I must admit that I do not operate in the residential market like the valuers of this property. My main area is commercial property or residential property for business purposes (investment/renovation and sale). So my knowlege is limited and I have no information on the best brokers etc.

However to drop £20,000 on a £140,000 property is extreme and there must be a very good reason for doing so (other than the valuer being incompetent - which would not surprise me). You need to find out why. I can't just be that the comparables are not there. The best evidence of value is what a willing buyer and a willing seller have agreed between themselves - that is the precise definition of value - so unless there is something very wrong with the property or the comparables are so low compared to the agreed price it does seem very odd.

If you can get hold of the valuation report, I would be happy to review.

Most of the residential valuers are not fully qualified Chartered Surveyors, but AssocRICS; i.e. just qualified enough to value a house but not necessarily with broader knowledge to 'take a view'. Some can be good but the practices within the large valuation companies leaves a lot to be desired.

Having sat in the witness box in Court giving 'expert witness evidence' I have always been very very careful to make sure I know everything I need to know about the case. I have also seen other valuers skewered by Counsel and have managed by the skin of my teeth to avoid that. I did get one over on one Counsel when the judge intervened to ask me a question which was pertinent to the case but was not being asked by either party. I answered with a nice smile on my face and the judge thanked me ever so kindly for the information and advised the questioning QC to change tack as he was not going to advance his case any further.

The hardest case I did was giving evidence with another surveyor in the box at the same time; 'hot tubbing' it's called. Every question was asked to each valuer (or asked to one and then the other asked to comment on the answer given). Phew - trying to give a completly honest answer without either screwing your client or dropping a very pleasant and reasonable fellow professional into the poo was damned hard. We repaired to the pub after that day to nurse two major headaches.

I should have added that the buyer for our previous house he'd save time by getting a full survey and getting the mortgage company to agree to use the valuation from that for his mortgage. Except a few things were found that then cost him quite a bit in other investigation work to satisfy the mortgage lender and he wishes he'd kept them separate. He'd still know about the issues and we'd have still haggled on price.

>> It's illegal, in Germany, to refuse entry to your property by a chimney sweep.

What if you don't have a chimney?

All Chartered Surveyors are independent unless they are employed by the mortgage company or their employer is a subsidiary of the mortgage company - although that is rarer than it used to be. But independent still means that they are acting in the best interests of their client. However, they must not be negligent or reckless or be untruthful. They must give their honest unbiased opinion of value and in the case of expert witnesses (see above), the Court is effectively their client even if someone else is paying them.

Zoopla is almost always wrong! There are far too many variables, even on a street of what from the front appear to be idential terraced houses, to say that they are all worth the same. Mind you I do think that the days of making loans dependent upon the value of property as security are passing. It will soon be ability to pay that is the main criteria and taking security will merely serve to concentrate the mind that they may lose their house.

Coming back to Bromp's son's dilemma, if I do value a property below the expected price, I provide a detailed analysis of the property, the market and the evidence to justify my opinion - I do that anyway. But then I charge an awful lot more than these valuers who are expected to work harder than we do. I do wonder why they do it, when if one of them was any good I would employ them in my firm.

>> Zoopla is almost always wrong!

I am sure they are. The range of price for ours has probably a difference of £50k high to low.

Our immediate neighbour sold their property last summer for £385k. The same as ours but without the extended kitchen, conservatory, downstairs cloakroom. They very quickly reduced the price to that from £400k because they were keen to move to a larger house. The immediate neighbour to them, again the same house without extending, sold recently within a week and it was marketed for £450k. So I am assuming two identical houses (apart from decor, actual kitchen and bathroom fittings) have sold for quite a difference because I doubt you'd market one for £450k and accept significantly less within 7 days of marketing.... I wonder what we might get assuming no major problems since we bought it.

I'm surprised how much some seem able to borrow at the moment and then find money like our neighbour to put on a single storey extension to rear and side and convert the loft. Banks don't mind lending if secured on something less than the mortgage because they'll just take the property of course.

Update is that the proposed lender (HSBC) will not give access to the valuation as 'it is purely for the bank's security purposes'.

Others are suggesting he goes back to the vendor and seeks a reduction but the obvious risk there is she tells him to take a running jump and remarkets it. The original offer for sale resulted in a 'pile on' that came close to sealed best and final offers being sought. It's possible that son's bid was successful because he and his partner are both public sector workers with good salaries.