RICS: "There is no such thing as a ‘down-valuation'"
Keen to get views on this article on the RICS website, entitled ‘The myth of ‘down valuation’ - does it truly exist?’. Any thoughts, send them across by tomorrow AM.
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RICS are 100% accurate with this statement. Unfortunately, estate agents convince many sellers that their valuation is a qualified one, Most estate agents market appraisals are carried out by unqualified and unregulated sales people with many inflating the value in order to win the instruction. I have personally witnessed this first hand with local estate agents in my area and it is a regular occurrence with the usual suspects. There a certain estate agents who, when we do a mortgage on a property they are selling, we try and prepare the client to expect a more realistic valuation. This practise will not stop until the estate agency industry is fully regulated and licensed so the Del Boys in the industry can be held accountable for their actions.
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The property have been down valued from your, the seller or the agents expectations but that doesn’t mean that it has been downvalued. Valuing a property is not an exact science especially if there are few comparable sales to go by.
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There is no escaping the ever increasing imbalance between supply and demand in the housing market. Stock levels have been growing steadily for some time as those who are forced to sell through deaths, divorces and relocation events. Whilst buyers registering with agents are declining due to the rising cost of owning a property.
This would suggest house prices should be coming down at a record rate but this just simply isn’t happening. The highest end of the market is taking the biggest hit which impacts overall average figures but by contrast, a solid family home is still shifting at rates comparable with so called “normal” numbers.
House prices will likely to start declining across the board unless the chancellor offers some kind of incentive to new buyers
This would suggest house prices should be coming down at a record rate but this just simply isn’t happening. The highest end of the market is taking the biggest hit which impacts overall average figures but by contrast, a solid family home is still shifting at rates comparable with so called “normal” numbers.
House prices will likely to start declining across the board unless the chancellor offers some kind of incentive to new buyers
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Down valuations aren’t a myth, they’re a mess, and everyone in the chain knows it. Sellers are told one thing by estate agents, then blindsided months later when a lender’s valuer knocks 10% off without warning. Buyers take the real hit, scrambling to cover gaps on projects that overrun or refinance exits that suddenly don’t stack. Transparency is non-existent. The valuer’s word is absolute, the appeals process is performative, and every decision is made to shield the lender. Borrowers are left carrying the can while the industry avoids any serious scrutiny.