Home Valuation Basis and Defects?

In the last two weeks I have dealt with defects, criticisms and quality issues and locational problems. All of these matters ultimately impact on the value of the property in varying proportions and we all have differing views of each one.

So the problem becomes one of communication. Let me explain……..

I once had a client who would not buy a modern timber framed house because, she said, they were Jerry-built. The home was perfect for her and was brand new but she had decided it was not for her. Her prejudice/bias resulted in her attempting to buy multiple homes and at massive legal and surveyor wasted fee cost. Why?

She did not trust her Consultants to act in her best interests? No – she simply could not overcome her distorted opinions and this translated into a zero worth assessment of each home in question.

For the rest of us, unlike the client above, we take a more reasonable view. However, at the end of the day a Surveyor assesses defects, quality issues and property-criticisms by way of “how the general market assess the overall situation”. NOT, how one individual may assess the property.

YOU might believe the individual home was worth £X but the general market may assess it at £Y. £Y would be the re-sale worth of this investment and not necessarily its’ value to you.

Furthermore, we all assess defects, quality issues and criticisms differently and so unless the Surveyor/Valuer has interviewed you at great length over a large range of problems, then he or she will not be capable of assessing “worth” to you alone.

Think about these things the next time you see a Valuation opinion. It might not say what you want or need and although you believe it to accurate or inaccurate it can still be correct.

The lesson here is to understand the exact basis of Valuation: often, such a Loan/Mortgage Valuation, they are produced for the benefit of others, not you. So why should you rely on it (and it does not matter at all whether you paid for it).

I mentioned “the last two weeks”: the defects I have considered and ventured opinions on include:-


Does the full cost associated with each matter mean that the home value is reduced by a similar amount each time? If not, why not? What are the ground rules?

The lesson here? Always discuss any service from a Surveyor/Valuer first, before you commission and pay for advice.

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