Valuations are down?

Valuations are down?

15:14 PM, 6th September 2022, About 2 years ago 6

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After several years of onerous taxes regulations etc. etc. I finally put my London flat on the market for sale. I got the asking price of £550k but the buyer’s valuation is 5% below the asking price at £525k

Options could be:
1. Take it on the chin?
2. Remarket it hoping a different valuer/ surveyor is more upbeat?
3. Rent for another 2 years?

I don’t need the money urgently, but with new EPC requirements, etc I just want to get out of the BTL area.

Any advice or options are welcome.

The Agent suggests taking it as the market looks precarious with rising interest rates.

Presently they are seeing a trend of downvaluing.


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16:21 PM, 6th September 2022, About 2 years ago

option 4 Is challenge the valuer some think its there job to read a crystal ball and predict what is going to happen next but that's not in my opinion there job is to value it on that day

Reluctant Landlord

16:36 PM, 6th September 2022, About 2 years ago

challenge the valuer then make a decision.

Are you prepared to ride the market or get out now?
Sounds like your plan was to bail out so just do it.

Seething Landlord

16:50 PM, 6th September 2022, About 2 years ago

This question raises the thorny question of how you define market value. I have always taken the view that it is simply the amount that a buyer is willing and able to pay for a property, whereas others say that it is whatever a qualified surveyor comes up with using the principles in the "red book". This seems nonsensical to me as however many surveyors claim that your property is worth 1 million pounds, if nobody is prepared to buy it for that price you have no sale. Many property investors claim to have bought below market value when what they have really done is take advantage of the seller's need to sell for whatever he can get in the market at the time, which defines the true value.
Your dilemma is to decide whether to accept the reality of the situation and achieve the sale or to hang on in the hope of finding a buyer who is able to pay the price that you want. If the existing buyer wants to be that person he will have to find the additional money himself and effectively provide a higher proportion of the purchase price as a deposit.

Dennis Leverett

18:49 PM, 6th September 2022, About 2 years ago

As Seething Landlord says its worth what someone is prepared to pay for it. How long has it been on the market, how much interest have you had, how does price compare with similar properties, what kind of return on capital employed will you get after cost of selling, tax etc. at that valuation. How much does buyer want it, strike a deal. Do your sums then make a decision and do it.


18:55 PM, 6th September 2022, About 2 years ago

Its really hard to call the market. At the beginning of Covid I thought prices were bound to drop and look what happened. Assuming you've got a decent gain you'll pay £7000 less CGT at 28% than if you achieved the higher sum so overall £18k less. At the end of the day I think a bird in the hand is worth 2 in the bush.

Simon M

11:47 AM, 7th September 2022, About 2 years ago

Option 2 is unlikely to succeed. Many valuers are setting lower valuations - caution in anticipation of rising interest rates, stretched household budgets and possibly a recession. Where prospective buyer depends on a loan, a good number are falling through & properties re-marketed. Where I'm watching, some are coming back to market at a more realistic price, which confirms prices were at a peak.

Option 1B - Offer to split the difference with your buyer.

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