Impact of down-valuation ''being felt''


Wed 14th Nov, 13:16:07 GMT

Sellers have been urged to be more realistic when considering how much their property is worth, it has been reported.

According to the Guardian, the number of homes being "down-valued" – properties that a surveyor employed by a buyer or mortgage lender says are worth less than the agreed sales price – is starting to look as if it on the increase.

This could potentially cause problems for those trying to sell, as they may need to lower their price or face a buyer walking out on the deal for fear of wasting money.

Amy Smith, of estate agency Chesterton Global, told the newspaper: "Estate agents can''t get instructions if we aren''t bullish on valuations…but many down-valuations occur where we didn''t value the property at as much as the seller insisted on putting it on for."

Earlier this week, the Scotsman reported that down-valuation is having an affect on the mortgage market.

It quoted Ray Boulger of mortgage specialists Charcol, as saying that there has been a sharp increase in the number of people who had turned down mortgages after being approved.

"The biggest group is those claiming they lost property, including as a result of a down-valuation

"This was 31 per cent in April, increased to 35 per cent in June and increased further to 39 per cent last month," he said.ADNFCR-1143-ID-18355140-ADNFCR


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