Do your clients a favour and don’t listen to them. At least that is when it comes to their perception of the likely value of their home.
Overestimated property values are the single biggest cause of delays in the valuation process.
While we are seeing signs of an uplift in demand, the reality is that these days, any mortgage valuation should be done within two to three days of receipt.
The problem and delay then arises when the applicant is disappointed with the figure, which may mean the cases can’t proceed or more likely will do so at a higher LTV and hence interest rate.
It’s understandable that this frustrates, but the reality is that applicants are not overly realistic as to the likely value of their own home, on average adding circa 10 per cent to its actual value. And in many cases, this figure is much higher.
To be clear, this is really only a remortgage issue – it’s rare for there to be disagreement over value on a purchase where there is a clear buyer and seller.
Valuers will always respond to requests for reviews but the reality is that amendments are rare – they are paid to get it right first time after all.
Lenders are also now becoming more cautious about encouraging such reviews – there is some difficulty in requesting independent advice and then being seen to encourage it to be reviewed. Importantly, the customer experience for the vast majority of unchanged reviews is also not great- introducing false hope and a delay, with no change to the end outcome.
There are plenty of available resources to help get an accurate estimate of likely value- brokers can save a lot of heartache and wasted admin by encouraging applicants and advisers to use them.
Credit scores and legal advice are black and white – all parties will benefit if valuation advice is treated in the same manner.