The art of knowing how to survey property correctly is a skill that many property investors and developers would give their right arm to learn. As a property professional one of the annoying little expenses that you constantly have to pay is that of the property survey.
It has been found that sometimes after a lenders valuation has been conducted on the property, the surveyor may or may not agree with the price that the property is selling for. The surveyor may give the thumbs up which will mean everything is hunky dory and you can carry on with the purchase. Or the surveyor may give you the thumbs down and say that the property is not worth what you have offered to pay for it. Now the mortgage lender is only going to lend the money to you based on the valuation of the property.
The good news is that sometimes the seller will see sense and lower the asking price of the property and you then save yourself some money. If the seller does not want to lower the price then this causes a bit more of a problem. If you still want to buy the property then you will have to find the extra money yourself by putting down some extra deposit. The other choice is to walk away from the property.
Depending on what the surveyor says you may find that he or she will increase their valuation if there are comparables of other properties sold in the area for the price that yours is up for. The estate agents are best to do this and the surveyor will normally need three to four properties of a similar value to consider increasing the price of the valuation. if the value still refuses to increase their valuation after seeing these comparables, then take note as maybe they could feel there's about to be a turn in the market and the prices are about to go down. If you are an investor thinking of flipping a property in the short term this could be the warning sign of not to go ahead with the purchase.