The definitive guide to estate agency
After a buyer agrees on the price of a house with a seller, the mortgage provider uses a surveyor to check what they believe the house is worth.
-The surveyor, employed by the mortgage provider, looks at the sale price of similar properties locally, market conditions in the area and the current condition of the property.
-If the surveyor believes the house is worth less than the agreed sale price, e.g. £10,000, this is known as a “down valuation”.
-It means that if the buyer cannot negotiate a new price for the house with the seller, they will have to find the extra £10,000 up front or risk losing the house.
-Those with the smallest deposits and who have remortgaged their house after doing renovation work are most likely to be affected by down valuations.
-Down valuations have been blamed for an increase in housing chains breaking down across the UK.
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