was is the risk of buying a property at above the surveyor's valuation?

Question

apart from the obvious

Answer 1

you will findit hard to get a re-mortgage

Answer 2

Market value simply reflects what a purchaser is willing to pay for a property and it's quite common for the market value to be a little above the surveyor's valuation. This is often influenced by supply and demand at the time. If the difference is only a few thousand pounds, no problems, but more than that would warrant second thoughts on the part of the purchaser. If there are no structural faults in the property, then the surveyor would normally use the current market price in that particular area as a benchmark, whilst allowing a margin of error to allow for any rise since the last recorded sale. They usually only downvalue if they believe the agreed price is substantially higher than current comparable property prices. It also has to be rememberd that if the surveyor is working for the mortgage company, the lender's only concern is that they may realistically recover the amount they have lent on the mortgage should the borrower default.

Answer 3

Just the obvious,.....yes,its stupid!Why in todays real estate
market would you pay more than a property is worth?Unless it comes with a guarantee of annual increases that is...=)

Answer 4

apart from the obvious there would be no other risk. It's a gamble.

Answer 5

Why would you pay more than it is worth? Unless you really liked the property no matter what it would be silly. and why do you post your questions twice?

Answer 6

"Apart from the obvious", nothing.

Answer 7

You will end up losing money.