We bought our house during the house market stability and price increases in May 2005. The house was listed for £165000. We were leaving social housing from a housing association, we qualified for a council assisted discount purchase, in a scheme where the house could be bought for 10 per cent under market value. The house was listed with an estate agent for £165000. We bought it for 149,950.
Four months after this, a neighbour next door to us moved in to an identical house for full market value of £155000. No discounts. Identical to ours, and taking into account the housing market prices were still rising! This was cheaper than ours.
In May 2006, I had my house valued as the housing market was still bouyancy and prices rising very healthily. Checking www.houseladder.co.uk showed me house prices were still increasing in my postcode area month on month for identical houses.
We had so far put in £2500 of new double glazing fitted from old damp aluminium framed windows, and general painting and tydying up in all rooms…with a new 2K bathroom as well.
The result of my valuation £164950! In a market moving upwards and with new windows and tiled bathroom and new bathroom suite, I had lost money over the actual estimated purchase price of 165000.
I strongly believe my house was overvalued by the Estate Agents at £165000, at time, to then have to bring the sale price with 10 per cent council discout to 150000. I believe it was overinflated more than the house was worth.
What can I do in regards the the estate agents over valuation and the fact that I can prove this in general house prices and times they were sold by the local valuations department in the council and online at www.houseladder.co.uk
House prices are like anything else, a house is only worth what somebody is willing to pay for it, you were willing to pay that so that’s probably what it was worth at that point in time. Did you have another, independant valuation done ? Don’t forget that an Estate Agent works for the vendor not the buyer and in all matters they are considering their own commission first and foremost :w00t:
If you had purchased the house with the mortgage you would have had a survey done. This would be your first port of call if you feel that that survey was not correct at the time. But unfortunately, you would not have a stand against the estate agent unless that estate agent was acting fraudulently. Similarly, if the vendor had acted in a fraudulent manner. You would also need to be able to prove the above.
This is really why you should do you research and even that do not guaranty anything
I am in the business and I still almost ends up with a massive negative equity over 2 years.
This said and to answer your original question, nope you can’t do **** about it. House are sold under the concept of “Buyer’s beware” and the only people estate agents are working for is the people that pay them… the vendor!!!
my advise is stay put, since 1944, there is not a 10 years stretch where the property prices in Greater London have not doubled
Yeah having recently bought ourselves, the Mortgage Company would not release funds they were satisfied with the value. Suggest you talk with the Mortgage Company to see what they say.
Strange you are having these concerns and only raising them 2 years after the event :hehe: ; but suggest Mortgage Company as first port of call.
But with a couple of other issues that have happened, I am not being the person to lie down and take this just at this point. I feel there has been an injustice, and it is eating me away inside until I at least have a look into this and try to either accept it or put it to bed.
if this was overvalued to get more money out of the housing association they should be involved and informed…they would likely have something to say…I would start there to be honest and see what they say…then if not you really have to talk to a solicitor and ask him if he can identify a case or not…leave it in his hands and see…gonna cost you to get justice though i suspect unless you can get the housing association or whoever it is to buy into it…
Valueing a property is not an exact science - there is no formula to work it out and it is always fuelled by what somebody will pay for it. Rises and falls in the market aren’t always nationwide and just because house prises were generally rising doesn’t mean that your house was rising in value too. Also, your house isn’t necessarily worth the same as next door, there are many factors that can affect it’s value.
If you took a mortgage to buy the property your lenders were happy with the valuation so you shouldn’t feel so hard done by. As already mentioned, the estate agent is employed by the person selling the property as they pay the fee. You didn’t did you?? A buyers ‘team’ consistes of their lender, solicitor and surveyor. If I were you I would instuct the same agent when your ready to sell!!
In this instance, maybe you could have tried to negotiate yourself a better deal and did more research before buying. Don’t think spending a few thousand will always mean you get that back - your spending may add no value whatsoever at all. It’s the luck of the draw.
Besides, property is a long term investment and should be viewed as that. 2 years is hardly long term.
