Why Sellers Must Be Realistic About Property Valuations: The Rise of Down Valuations

Understanding the Impact of Down-Valuations on Property Transactions
In recent times, there has been a concerning trend observed within the real estate market – the rise of down-valuations. Reports from Estate Agents Today have highlighted a surge in instances where valuations conducted by surveyors for banks are coming in lower than expected. This phenomenon has left both agents and mortgage brokers astonished, with little concrete evidence to justify the downward adjustments.
 
Laura Bairstow, the founder of The Mortgage Masters, aptly describes the situation: “We have noticed a definite increase in down valuations, especially in instances where the borrower only has a 5% or 10% deposit.” She further recounts a case where both the borrower and the estate agent were taken aback by the extent of the down valuation, prompting the borrower to seek an independent valuation, which contradicted the lender's assessment by valuing the property at the asking price.
 
Gareth Davies, director of South Coast Mortgage Brokers, echoes this sentiment, stating, “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.

The Role of Realistic Valuations in Property Transactions
 
Amidst this backdrop, it becomes increasingly crucial for sellers to approach property valuations with pragmatism and realism. One of the underlying issues contributing to down-valuations is the tendency of some estate agents to overvalue properties in an attempt to secure listings and attract sellers. This practice, while understandable from a business standpoint, can lead to inflated expectations and eventual disappointments when valuations fall short during the sales process.
 
Kerry Brown, director of Browns Estate Agents, has suggested that this trend may drive the price of properties down. She emphasizes the importance of valuing your property correctly, stating, “I can't stress how important it is to value your property correctly and not choose an agent who values it too highly just to get your property on the market.” Sellers must prioritize honesty and accuracy over inflated estimations, as this can ultimately facilitate smoother transactions and mitigate the risk of down-valuations.
 
Ensuring an Honest Valuation: Choose Browns Real Estate
At Browns Real Estate, we prioritize transparency and accuracy in property valuations. Our team of experienced agents conducts thorough assessments, taking into account market trends, property condition, and other relevant factors to provide realistic valuations. We understand the importance of setting the right price from the outset, enabling sellers to make informed decisions and maximize their chances of a successful sale.
 
If you're considering selling your property and seek an honest valuation that reflects its true worth, look no further than Browns Real Estate.
 
Click the link below to book your valuation appointment and embark on your property selling journey with confidence.


Get in touch with us

First Name*
Last Name*
Mobile Phone*
Your Email Address*
Are you looking to*
Please enter message here*
Please confirm that it is okay for us to contact you about this information as well as products and services. (You will always be given the right to unsubscribe at any point in the future)*

Register to our Heads Up Property Alerts

Ever missed out on the perfect property just because you heard about it too late, or the Estate Agent never told you about it as it was slightly outside of your criteria? Never miss out again by using our “Heads Up Property Alerts”.

My Property
Value My Home