A surveyor will usually carry out a valuation survey for the lender to assess whether the proposed loan is less than the value of the house. The surveyor will know firstly what the proposed price of the house is, and secondly, the size of your requested mortgage. Expect the valuation price to be lower than the asking price - the surveyor will always be pessimistic and cautious.

The lender will pass on the cost of the valuation to you, but remember, you do not automatically have the right to read the report. At the end of the day, the surveyor is valuing the property for the benefit of the lender.

What are the Benefits?

• You get a second opinion on the asking price.
• The survey may indicate work that needs to be done.
• If the property turns out to be unmortgagable a "failed survey" (see below), you will have saved yourself a lot of trouble in the future.

Failed Valuation Survey

A valuation survey can fail for various reasons:

• The valuer believed the property to be overpriced.
• The valuer finds a major defect.

All is not lost! See if the lender will explain why the valuation "failed". If the property was overpriced, it gives you an excellent opportunity to renegotiate with the owner (especially if they are eager to sell). If there is a major defect and you still want the house, try to negotiate a substantial discount and approach the lender again.

In rare circumstances, the valuation may be higher than the asking price. If this is the case, you'll be getting a good deal.

   Get me a Valuation Survey Quote