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Down Valuations ? Valuations v`s Market Appraisals? How MUCH is MY HOME worth ???

Date Added 19/11/2020

MARKET APPRAISAL vs VALUE..

Appraising a Property is something us Estate Agents do every day. But how often do we think ahead for when it is formally valued?

Estate Agents can never predict what is going to happen but WE CAN always aim to provide honest and professional ADVICE.

Managing our clients expectations and the natural competitive industry of Estate Agency Property Sales is a fine balance.

Considering the VALUE of your most prized asset is something we see as a challenge right from the start. We always aim to deliver the result that you all want, MOVING DAY.

SO HOW DO WE DO IT?

The fine art of sale-ability versus price, so often misunderstood and is exactly that challenge. When we visit your home we take into consideration a number of factors:

You, what is it you want to achieve? Your budget, time scales, the current market conditions, the same comparable evidence that a Chartered Surveyor or Residential Valuer will use in their assessment on behalf of a lender, Advertising, Marketing and the opinions of those looking to Purchase a house or property like yours.

In fact there are many factors, evidence and years of experience that allow for a successful listing and agreed sale of Property. If we work as a Team with our Vendor clients and Purchasers, then hopefully the below article and points raised by the Daily Mail happen as least often as possible.

WE TRY TO BE ACCURATE from the start!

So...what happens if a property is down valued and how do we all "fix" that situation?

Read on...

"Down valuations cause gridlock in the property market: What to do if your sale is at risk of falling through as mortgage lenders downgrade prices"

House sales are falling through due to a practice known as `down valuations`
Down valuations occur when a valuation is lower than the purchase price agreed
Lenders are increasingly nervous about valuations amid the pandemic

"A down valuation occurs when a bank or building society checks the value of a property for sale - and that valuation ends up being lower than the agreed purchase price.

As a result of this down valuation, the mortgage lender then refuses to provide the required loan to fund the purchase.

It leaves the person buying the property either having to negotiate a new lower price with the seller, or being forced to bridge the gap between the originally agreed purchase price and the smaller mortgage offered due to the lower valuation.

The seller in turn can agree to reduce the agreed sale price - or meet somewhere in the middle - but this can have a knock-on effect and leave them unable to afford to buy their next home.

If an agreement can`t be reached, the house sale falls through, affecting the rest of the property chain - something that is beginning to occur more widely across the country."

How to deal with a down valuation ???

"As a buyer:

1. Negotiate a new price with the seller that both parties can work with

2. Find a new lender that will offer the deal you need

3. Increase the size of your deposit from your savings

4. Bridge the gap with money from friends and family. Perhaps try the Bank of Mum and Dad

5. Pull out and look for a new property

As a seller:

1. Consider lowering the sale price or meeting somewhere in the middle

2. Encourage the buyer to try another lender with different lending criteria

3. If the numbers don`t work for you, get estate agents or solicitors to negotiate reductions or new deals up the chain

4. Put your property back on the market and try to find a new buyer who can offer the required amount

5. Look for a cash buyer "

The above is an introduction to this long a debatable topic so if you need any advice @Home Estate and Lettings Agents are here to HELP YOU!

SO PLEASE GET IN TOUCH...

For more information please see this recent article below

https://www.dailymail.co.uk/property/article-8945723/What-sale-risk-mortgage-valuation.html
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