Down-valuations are causing a stir in the property market, as surveyors take a cautious stance amidst stagnant conditions.
According to Evren Ergin from Value, these down-valuations are often the only honest numbers in transactions, highlighting the inflated expectations set by estate agents, sellers, and buyers. As asking prices drift upwards while sold prices remain flat, the gap inevitably surfaces during surveys, leading to broken deals and lender-related fall-throughs.
Jamie Elvin from Strive Mortgages notes the recent trend of drastic down-valuations, with reductions of up to £400k, or 30% of property value. This defensive approach by surveyors, especially in uncertain conditions, results in valuations significantly lower than market evidence suggests.
Daniel Meadows from Summit Financial Solutions emphasises the need for estate agents to stay realistic about local market ceilings. Overinflated asking prices set unattainable expectations, leading to disappointment at the valuation stage. As the market navigates these choppy waters, the call for restraint in asking prices grows louder.
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