Rise of "Down Valuations" Leaves Homebuyers Reeling as Mortgage Experts Warn of Uncertainty
A growing trend in property valuations is causing chaos in the housing market, with some homes being marked down by as much as 10% or more by surveyors. The practice, known as a "down valuation," has experts warning that it's turning deals and lives upside down for buyers.
According to mortgage brokers, the uncertainty surrounding the upcoming budget may be fueling a rise in surveyors taking a cautious stance and valuing properties at less than their agreed price. The scale of these markdowns can vary depending on location, with some areas experiencing larger reductions.
In London and the south-east, down valuations are particularly prevalent, although this is largely due to the higher values of properties in these regions. For instance, a recent case seen by Ayla Mortgages involved a property being down valued from £3.1m to £3m, with the client unable to absorb the reduced value.
Industry experts report that most down valuations are moderate, typically falling within the 2-5% range below the agreed purchase price. However, in some cases, reductions have been as high as 15%. New-build flats, unique properties, and homes in slower markets tend to attract more scrutiny from surveyors.
Patricia McGirr of Repossession Rescue notes that down valuations are becoming a postcode lottery, with values varying wildly depending on location. This is causing "chaos and stress" for sellers, developers, and others involved in the market.
The Royal Institution of Chartered Surveyors (Rics) clarifies that there's no such thing as a "down valuation," but rather a difference between what an individual buyer or seller thinks their property is worth versus its actual market value. In most cases, it's the lender who takes on this risk, not the buyer.
As a result, buyers are facing tough choices, including having to borrow more money, putting up a larger deposit, or abandoning the purchase altogether. This uncertainty is having a profound impact on people's lives, with some experts warning that it's turning deals upside down and leaving homebuyers reeling.
A growing trend in property valuations is causing chaos in the housing market, with some homes being marked down by as much as 10% or more by surveyors. The practice, known as a "down valuation," has experts warning that it's turning deals and lives upside down for buyers.
According to mortgage brokers, the uncertainty surrounding the upcoming budget may be fueling a rise in surveyors taking a cautious stance and valuing properties at less than their agreed price. The scale of these markdowns can vary depending on location, with some areas experiencing larger reductions.
In London and the south-east, down valuations are particularly prevalent, although this is largely due to the higher values of properties in these regions. For instance, a recent case seen by Ayla Mortgages involved a property being down valued from £3.1m to £3m, with the client unable to absorb the reduced value.
Industry experts report that most down valuations are moderate, typically falling within the 2-5% range below the agreed purchase price. However, in some cases, reductions have been as high as 15%. New-build flats, unique properties, and homes in slower markets tend to attract more scrutiny from surveyors.
Patricia McGirr of Repossession Rescue notes that down valuations are becoming a postcode lottery, with values varying wildly depending on location. This is causing "chaos and stress" for sellers, developers, and others involved in the market.
The Royal Institution of Chartered Surveyors (Rics) clarifies that there's no such thing as a "down valuation," but rather a difference between what an individual buyer or seller thinks their property is worth versus its actual market value. In most cases, it's the lender who takes on this risk, not the buyer.
As a result, buyers are facing tough choices, including having to borrow more money, putting up a larger deposit, or abandoning the purchase altogether. This uncertainty is having a profound impact on people's lives, with some experts warning that it's turning deals upside down and leaving homebuyers reeling.
I FEEL FOR ALL THOSE BUYERS WHO ARE TRYING TO GET A FOOT IN THE DOOR BUT CAN'T DUE TO THESE MARKDOWN SCENARIOS. IT'S LIKE THE SURVEYORS ARE PLAYING A GAME OF ECONOMICS AND LEAVING HOMEBUYERS TO FIGURE OUT THE REST! 
this is crazy stuff going on in the housing market 
i mean like a 10% drop just because of surveyors being cautious 
it makes sense if they're worried about the budget but still, it's a big deal for buyers who are already stressed out about finding a place to live 
and yeah, the postcode lottery thing is wild 
i mean who gets hit harder by down valuations in one area vs another? it's just not fair 
like borrowing more or putting up a bigger deposit 
but at the end of the day, it's still super stressful for buyers who just want to find a home 
The lenders are the real winners here, taking on all the risk and leaving buyers with a bad deal. It's like they're trying to rig the system in their favor, just like politicians do when they make decisions that benefit themselves and their donors.
The values are all over the place, and it's causing chaos for buyers who thought they were getting a fair deal. It's time to shake things up in this system and make sure everyone plays by the same rules.
this is so unfair for buyers who are already stressed out trying to save for a home in the first place... 10% off is a huge difference and can totally ruin someone's plans. 