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Investor opportunities as down-valuations increase

New reports suggest down valuations are increasing and properties are routinely selling for below asking price - both triggering possible opportunities for canny investors.

Comparison service GetAgent says: “It’s clear that buyers are still treading with caution as a result of higher borrowing costs and estate agents must approach the valuation process sensibly.” 

Only 10 per cent of agents just surveyed by GetAgent said that buyers were submitting offers at or above asking price in the current market and, more significantly, 63 per cent are making offers at below asking price - with sales typically agreed below asking price.


And some 30 per cent of agents also stated that they had seen an increase in properties being down valued, with 36 per cent seeing an increase in the number of homes falling through. 

This isn’t the first talk of down valuations in recent days.

Last week mortgage brokers and property professionals piled in with comments to the Newspage agency on how the trend was gathering pace.

Laura Bairstow, founder of The Mortgage Masters, told Newspage: “We have noticed a definite increase in down valuations, especially in instances where the borrower only has a five  or 10 per cent deposit. Interestingly, we had a case this week where both the borrower and the estate agent were shocked at the extent of the down valuation so the borrower opted to have an independent valuation of the property and it came in at the asking price, way above what the lender had valued it at.”

South Coast Mortgage Brokers director Gareth Davies added:  “It's down valuation central right now. We're seeing a clear uptick in surveyors disagreeing on valuation figures. We've had three cases this week where a surveyor has stated a value less than what the property was bought for in 2022, despite no evidence to suggest that this is happening in the respective regions.”

He continued: “One client was furious with the attitude of the surveyor that came out to his house, as he apparently seemed 'hell-bent' on disagreeing with the estimated value from the second he entered the door. He even said that the place was on the 'lower end of the scale', despite being a beautiful detached four-bed place.”

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    The mortgage lender obviously has the right to protect their business, but down valuations are holding the market to ransom! A property used to be worth what someone is prepared to pay for it - now its worth what some valuer believes its value might be IF the market does something, sometime!

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    In the last crash many surveyors were put out of business because they were sued for over valuation, and due to this many could not trade as PI insurance was difficult to obtain. If you were a surveyor in the current market what would you do, I would be watching my back and valuing on the low side.


    I get it - but the problem is it is not an exact science & valuations will fluctuate over time.

    My son's house valued by EA at £200k, two buyers have offered £200k - first valuer said £180k so no sale, waiting for the second. It does appear the bigger the mortgage LTV the lower the valuation! The housing market is being driven by pessimistic valuers not by vendors & buyers!

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    Surveyors need to be impartial and value things at a reasonable value. Not high or low.


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