apart from the obvious
2007-12-14 23:26:46 · 9 answers · asked by Perfectionist 6 in Business & Finance ➔ Renting & Real Estate
Sorry - can't fathom the meaning of your "Was is the risk...." ! ! !
2007-12-15 00:26:46 · answer #1 · answered by Anonymous · 0⤊ 1⤋
The surveyor's valuation is his 'best estimate' based upon the information available to him. His valuation is not carved in granite in any fashion. The level of risk involves the future, of course. You may do very well paying above market if the future brings a buyer who desperately wants the property from you, even if said person has to pay more. Conversely, you can lose money, even if you pay LESS than surveyor value, if something should occur which will devalue the property to under its current valuation.
The obvious includes difficulty in obtaining a mortgage if the purchase price is higher than the surveyor estimate. You CAN get a mortgage, but it will be limited to the surveyor estimate or below.
2007-12-15 00:00:49 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
If you pay over the valuation, (and you can get other valuations that may have different values) you are paying a premium over market price. It will affect any loans you take out against the property and also means that when you come to sell, market price may not rise high enough to cover the premium. Consequently you may take a loss on sale.
Most property experts recommend to take a long term view on house prices and figures show vaues rise over time even if they dip in the short term, but you are taking a risk on market conditions on selling.
2007-12-14 23:38:51 · answer #3 · answered by Barbarian 5 · 1⤊ 0⤋
If the purchase price is 350K, The valuation is 330K. Your mortgage provider will, base his mortgage advanve to you on the lower amount of the two. In this case 330K.
If the valuation is more than 10% lower than the asking price, then I would be concerned. Maybe your paying too much
Valuations are normally always lower than the asking price.
If other properties sell for around the same price, then your probably paying the correct price.
2007-12-17 20:07:29 · answer #4 · answered by Malik K 2 · 0⤊ 0⤋
The things to bear in mind are that values are falling, and I think the trend will continue for 2 or 3 years, by which time values may be 25% lower than they are now. Secondly, you may not get the full mortgage you need. However the best valuer is you! Look at other houses in the area, and if you are satisfied that your purchase is a good one by reference to other houses and local sales, then there is no reason not to go ahead. If this is THE house for you, and you plan to stay for more than 10 years, then it wouls be foolish to loose your dream house just because of a surveyor's opinion. PS, I'm a surveyor too!!
2007-12-15 01:38:23 · answer #5 · answered by Anonymous · 0⤊ 1⤋
I would inform the sellers that you do not intend to pay more than the current valuation, which is likely dropping even as you read this question....
Unless there is some overwhelming reason that you simply must have this specific slice of american land right now I would not buy it under any circumstances!
The sellers need to hear it though, so they can begin the pain of adjusting their expectations; it is a very bitter pill to swallow for most right now, but, just walking away without telling them the reality is like enabling a drug addict.
2007-12-15 00:46:48 · answer #6 · answered by Pam H. 2 · 0⤊ 0⤋
insanity at the moment you should pay today between 5 and 20% below valuation Don't forget more people are in negative equity than realise it in other words its a Byers market
2007-12-15 00:36:44 · answer #7 · answered by tomas b 3 · 0⤊ 0⤋
post an ads say on www.tioso.com, describe what you want and wait for the response
2007-12-18 03:08:11 · answer #8 · answered by Anonymous · 0⤊ 0⤋
It will affect the amount of mortgage you require
2007-12-14 23:29:52 · answer #9 · answered by foxystorky 3 · 0⤊ 1⤋