A ‘down valuation’ is the result of a valuation report stating that the property has been valued at less than the seller’s asking price. This term is not one that we, and many others in the industry, like to use - what is referred to as a ‘down valuation’ is, in reality, the difference between what the seller believes the property is worth and the actual market value.
There are always going to be challenges in an always rising and falling market like property, which is why expectations for what your property is worth may not always be met. This is simply a reflection of the current state of the market, and a differing opinion on the value of what your asset is worth. Whilst an agent or seller can give a market appraisal, or what they deem to be the value of a property, this is not a qualified valuation of what the property’s actual market value is.
Whilst agents should have good industry knowledge and be able to have facts to back up the figures that they give, they are not required to be qualified in surveying, meaning that the price that they give for a property may be more than what one of our qualified chartered surveyors value it at.
A valuation must always meet the requirements of the RICS Red Book, which sets out the requirements and protocol that must be adhered to when providing a valuation on a property. This Red Book states that valuers must have evidence and a suitable method for how they came to the conclusion of their valuation figure. All of our chartered surveyors are RICS qualified, and provide valuations that fall in line with the RICS Red Book requirements, so that you can rest assured that you are receiving an accurate figure for your property.
Valuations protect both the buyer and any mortgage lender from a loss that may occur should they accept a price on a property from a seller or agent that may be more than the property’s actual market value.
If you’re looking to purchase a property, make use of our mortgage valuation service to ensure that you are not paying more than market value. Get in touch with the team on 0800 161 5767 to book your valuation today, or enquire here.