Money Street News
  • Please enable News ticker from the theme option Panel to display Post

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.”

Want to comment on this story? If so…if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *


Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

No, thank you. I do not want.
100% secure your website.