Newmarket, Ely & Bury St Edmunds Estate Agent - Down Vals are back !

Down Valuations are back….

What are your options. 

If a house you’re buying is down-valued by the mortgage lender’s surveyor, it does not automatically mean the purchase is dead. It means the lender is only prepared to base its lending on the surveyor’s valuation, rather than the price you agreed to pay. 

Your main options are:

Renegotiate the purchase price.

This is normally the first move. If you agreed £400,000 but the lender values it at £380,000, you can ask the seller to reduce the price. A formal lender down-valuation gives you a strong negotiating position. 

Meet the difference yourself.

You can still pay the original price if you have sufficient cash, but the lender will normally calculate its mortgage against the lower valuation. Be careful: you are effectively choosing to pay more than the lender’s surveyor believes the property is currently worth.

Split the difference with the seller.

Often the most practical solution. For example, £400,000 agreed, £380,000 valuation, then buyer and seller agree £390,000.

Challenge the valuation.

Ask the lender about its valuation appeal/reconsideration procedure. You generally need strong evidence, particularly recent completed sales of genuinely comparable properties, rather than asking prices on Rightmove. Improvements or important features overlooked by the valuer can also support the case. The lender does not have to accept the challenge. 

Try another mortgage lender.

Another lender may appoint a different surveyor and reach a different valuation. There is no guarantee, though—particularly if comparable sold prices support the original down-valuation. 

Change the mortgage structure.

If you have additional deposit available, your broker may be able to restructure the loan so the lower valuation still works within the lender’s loan-to-value limits.

Walk away.

A significant down-valuation should make you reconsider whether you are comfortable paying the agreed price. 

This is why an experienced Agents initial valuation and advice to the seller is so paramount when it comes to fair market pricing.