The analysis by Open Property Group shows that across Britain, the average property subject to a down valuation is being revalued to the tune of 2.8%, which equates to £7,290 on the current average house price
New research shows that sellers in Wales are likely to be hit hardest by a down valuation, with the average home down valued to the tune of £8,149.
Open Property Group evaluated the estimated percentage of down valuations across each region of Britain in line with current market values, to reveal just how much sellers could be hit during the home selling process if their surveyor does not see eye to eye with their agent when it comes to the market value of their home.
Down valuations are on the rise and they are causing a considerable headache for homebuyers and sellers alike, who are already struggling to traverse an unsettled property market in the face of elevated mortgage rates and cooling house prices.
The analysis by Open Property Group shows that across Britain, the average property subject to a down valuation is being revalued to the tune of 2.8%, which equates to £7,290 on the current average house price. Nonetheless, it is Welsh sellers who are being hit hardest, with the average down valuation resulting in a reduction of £8,149 in value on the average home.
In the current market, down valuations are also coming in above the £8,000 threshold in the West Midlands (£8,143), the South West (£8,075), Scotland (£8,035) and the North West (£8,017).
Despite being home to the biggest percentage down valuation at 4.8%, sellers in the North East are seeing the smallest monetary reduction in the value of their home during the surveying process, with a reduction of £7,498.
Down valuations are an unfortunate part of the home selling process and they seem to be rearing their head once again, with lenders keen to protect themselves in what continues to be a tricky environment with respect to the cost of borrowing. As a seller, it can be extremely frustrating when a lender does not see eye to eye with you, particularly after you have already gone through the lengthy process of securing a professional valuation from an agent and have accepted an offer from a buyer, according to the chief executive of Open Property Group, Jason Harris-Cohen.
He added: Unfortunately, there is not a great deal that can be done other than taking the hit, or repeating the process of finding another buyer, which can drag on for weeks on end, especially in present market conditions.
The post Sellers hit hard by down-valuations first appeared on Invest for Property London, Buy Residential property UK.
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