Mortgage valuations

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Mortgage valuations

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Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Tue Mar 17, 15 9:54 am Post subject: Mortgage valuations

Has anyone got much experience with them? My only experience is with common properties that just have the offer price rubber stamped.

However, with more unusual properties such as small holdings or one off properties with land, they seem to be rather random and frankly meaningless.

I'm aware that they aren't a general "this property will eventually sell for x" type thing, but rather "the lender could shift the repossessed property for Y at auction" but even so the numbers don't seem to add up.

dpack

Joined: 02 Jul 2005
Posts: 46187
Location: yes

Posted: Tue Mar 17, 15 11:36 am Post subject:

many years ago i mended houses for folk ,my impression of mortgage valuations was that it very much depended on the person valuing it rather than the real or even potential value ,some would reduce by 20% for a single rotten windowsill and some would ignore obvious dry rot or subsidence entirely.

i expect it is even more random /subjective with unusual properties it certainly was with gd 1 and 2 listed stuff.

Shane

Joined: 31 Oct 2005
Posts: 3467
Location: Doha. Is hot.

Posted: Wed Mar 18, 15 6:04 am Post subject:
A lot of mortgage companies just do a quick check on Zoopla nowadays, I'm told

Piggyphile

Joined: 02 Apr 2009
Posts: 891
Location: Galicia

Posted: Wed Mar 18, 15 7:09 am Post subject:
Our UK house valuation was a drive by.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Wed Mar 18, 15 7:21 am Post subject:

The thing about one off properties is that they're, well, one off, meaning it's saleable for a fairly random amount, depending on nothing more than a couple of people's finances. The cost of land and a rebuild cost is easy enough to estimate, but beyond that, property prices are fairly random for that kind of property, and so impossible to value on paper, really.

As for regular boxes, zoopla is sufficient, on average, which is how the game is played.

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Wed Mar 18, 15 8:02 am Post subject:

Shane wrote:

A lot of mortgage companies just do a quick check on Zoopla nowadays, I'm told

That was my thought, either Zoopla was used or whatever Zoopla bases it's valuations on. The problem with that is the property in question has not been sold for decades so Zoopla doesn't have anything to go on - not even the number of rooms - so it's estimate has little meaning.

dpack

Joined: 02 Jul 2005
Posts: 46187
Location: yes

Posted: Wed Mar 18, 15 3:37 pm Post subject:
iiuc zoopla base valuations on similar sales nearby so in this case they are irrelevant to anybody who needs a valuation

dpack

Joined: 02 Jul 2005
Posts: 46187
Location: yes

Posted: Wed Mar 18, 15 3:41 pm Post subject:
the real value of anything is the price paid at a well advertised auction imho but that is not probably the highest or lowest price achievable (best price depends on your role in the deal )

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