What happens if the survey valuation is higher than my offer?
So what happens if you have a valuation survey carried out on a property and the surveyor says the property is worth more than what you offered. Absolutely nothing but shhhhh! Let me explain.
You instructed the surveyor and their job is to report to you on what they think the property is worth. If you're getting a mortgage they'll also be reporting to the lender that its ago to lend you money because if you don't pay it back they can always take the property and sell it.
Because the surveyor was your instruction the seller doesn't get to see what he or she says in the report so just let sleeping dogs lie as they say.
Sellers who sell privately are prone to underselling. They think their saving money by avoiding estate agency fees but often get offers below the market rate. Bit of a false economy but hey, they're happy because they think they saved something.
It only becomes an issue if the surveyor is in the property at the same time as the vendor, they get talking and the surveyor says something like, "You know all the other properties like this one which I value round here sell for a lot more than the offer you've got.
OK, then you might have a problem and the seller might pull out unless you up your offer but generally this is really rare. If your offer is just slightly below the market value - say 10 to 15% - a professional surveyor probably isn't going to say anything.
I have had one conversation with a surveyor though where it was quite obvious that an elderly couple were being taken for a ride. Their property had gone up so much in their lifetimes that they thought the offer they had got was astounding but it was nearly 50% below what they could have achieved.
The surveyor and I talked about it at length because it is such a rare occurrence and who were we to interfere but in the end the surveyor did decide to have a chat with the couple and they then decided to withdraw from the sale.