The Valuation can be a minefield which needs to tread very lightly and with grace. Times have changed from when the Market values were going up regardless of whether the purchase was made at Below Market Value or not, and the surveyors did not ask the question “how much is the property being sold for?”
With this in mind here are my top three common mistakes made by Purchasers at the valuation:
The figures being asked for are way off the real MV
In my experience the surveyors are very qualified and they really do know their own area inside out!
Some purchasers believe in the philosophy of “if I ask for a valuation way above the real MV, the surveyor will down value anyway and hopefully ill still get the price I need when they do”. Although I do understand that logic, I believe in a different philosophy:
Once the Due Diligence is done thoroughly, we should have a good idea on how much the Market Value should be and the price asked for should be around that figure or maybe slightly lower. I find that the surveyors are quite lenient as long as our figures almost match the figures they already had in their minds before they arrived at the property. If the figures are way off their initial idea of the MV then they tend to react in extremes and down value with a vengeance because in their opinion our figures are not worth taking into consideration.
The Estate Agent and or vendor is given permission to speak with the Surveyor
The Fact is that the surveyors are looking to value the property at the lowest price possible as they work for the lender and not you!
Most purchasers still allow the surveyor to take control and talk with the vendor direct or the Estate Agent. This must not be allowed to happen in any circumstances, even if the vendor has been primed to say the right thing prior to the surveyors visit. We find that so many things can go wrong and especially right now the surveyors are extremely insistent on getting the sale price from an outside source.
Remember that it is your hard earned money that is paying for the survey so you are within your rights to organise the valuation. We at Meet The Surveyor take charge of the whole process and make sure that no one is allowed to speak with the surveyor unless we allow them to and only then with the information we want the surveyor to have.
Lack of Preparation
Normally enough work is not done in advance to prepare for the valuation:
Here is a list of things that in my experience, are a must before the surveyor arrives at the property:
· Due diligence to be carried out in detail (no guesswork)
· Recent Sold comparables to be collated and casually offered to the surveyor
· Make sure the property is taken off the internet e.g. Right Move
· Make sure the For Sale board is taken down from outside the property
· Build rapport with the vendor so they are on your side throughout the survey
· Make sure the property is tidy or at least free of clutter so the surveyor can get access to each room including the loft and garden
· All pets to be under control
· Be present at the property at least an hour before the surveyor arrives incase of any problems that need to be taken care of, in my experience there always are! J
· If at all possible try not to bring your emotions into the valuation.
· Make sure that you actually go and Meet The Surveyor and if of course you can not for any reason then send someone that has your interest at heart!
Until next time…Happy Buying
Sonny Walia
If there is anything you would like for me to talk about in detail, please feel free to write in and leave a comment or request.