1. Understand Why the Property Was Down-Valued
The first step is to understand the reasons behind the down-valuation. Surveyors base their valuation on various factors, including the condition of the property, the prices of comparable properties in the area, and recent market trends. Request a copy of the surveyor’s report from the buyer to gain insight into the specific factors that influenced the decision. This will help you determine your next steps.
2. Review the Market Comparables
One of the key methods surveyors use for valuation is comparing your property with similar properties that have recently sold in the area. Review these “comparables” to see if the surveyor’s assessment aligns with current market trends.
- Conduct your own research: Look at property websites like Rightmove, Zoopla, and local estate agent listings to find similar properties sold within the last 6-12 months.
- Check the specifics: Ensure the comparables the surveyor used truly reflect your property’s features, such as location, size, number of bedrooms, and condition. Sometimes surveyors might use properties that aren’t directly comparable, which could result in an inaccurate valuation.
If you find that the surveyor’s comparables do not accurately reflect your property’s value, you can use this evidence to challenge the downvaluation.
3. Challenge the Valuation (If You Have a Strong Case)
If you believe the surveyor’s valuation is incorrect, you have the right to challenge it. Here’s how you can go about it:
- Gather evidence: Collect information on comparable properties that have sold for a price similar to your asking price. Make sure these properties are in a similar location and condition to yours.
- Present your case: Share this evidence with the buyer and their lender, highlighting any differences that may have been overlooked in the original survey. For example, if your property has recently been refurbished or includes additional features (such as an extension or a newly fitted kitchen), emphasise these factors.
- Request a second opinion: The buyer can ask their lender for a second survey, though this will usually be at their discretion and may incur additional costs.
While challenging a valuation can be time-consuming, it may be worthwhile if you have solid evidence that supports your asking price.
4. Negotiate with the Buyer
If the down-valuation stands and you’re unable to challenge it successfully, it’s time to have a frank discussion with the buyer. Here are some options to consider:
- Price reduction: If you’re in a hurry to sell, you might decide to lower the asking price to match the surveyor’s valuation. While not ideal, it can help keep the sale on track.
- Split the difference: You could negotiate a middle-ground price with the buyer. For example, if the down-valuation is £10,000 lower than the agreed price, you might offer to reduce the price by £5,000, asking the buyer to cover the remaining difference.
- Offer incentives: To keep the sale moving forward without dropping the price, consider offering incentives. This could include covering some of the buyer’s closing costs or leaving behind certain fixtures or appliances that would otherwise not be included in the sale.
Open communication with the buyer is crucial. They may be willing to negotiate if they’re truly interested in the property.
5. Consider Getting Your Own Valuation
If the sale falls through due to the down-valuation, you may want to consider hiring an independent surveyor to conduct a valuation of your property. A second opinion can provide a more accurate reflection of your home’s worth, especially if you feel the original valuation was overly conservative.
- Use the new valuation: If the new survey aligns with your asking price, use it as evidence when remarketing your property or negotiating with future buyers.
- Address any issues: If the independent surveyor identifies any problems that may have affected the down-valuation, take steps to address these issues before re-listing the property. This might involve minor repairs or renovations that could boost the property’s perceived value.
6. Make Improvements to Increase the Property’s Value
If the devaluation is due to the property condition, then a few improvements should be made to make over it before relisting it. Although it will cost a bit in the initial stages, some of them will uplift the value of the property in the market. Once the improvements have been completed, you should market your property once again, perhaps at a price closer to your goal.
7. Reassess Your Selling Strategy
A down-valuation can be a perfect opportunity for you to re-think your selling strategy. If you feel that your current agent has advised you to ask too much, then it is time to seek another opinion with an estate agent who is better informed of the local market.
Final Thoughts:
A down-valuation can be frustrating, but it doesn’t have to be the end of the road. By understanding the reasons behind the valuation, gathering evidence, and exploring your options for negotiation, you can take steps to keep the sale on track. Alternatively, making strategic improvements to your property can help you achieve the price you’re looking for when remarketing.
Above all, remember that the property market is subject to fluctuations, and sometimes, compromises are necessary to ensure a successful sale. Taking a proactive approach will give you the best chance of navigating a down-valuation smoothly and ultimately finding a buyer who sees the true value of your home.
