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They are agreeing a value based on price agreed and saying whether it represents value for the lender. The condition of a property will of course reflect value but not by a huge amount. It doesn't matter how nice a property is or what fixtures and fittings are in it. Valuation is based on can the bank recoup their money on that property at auction if you default on it. The swing will not be 40k
mustardbeak-
Valuation is based on can the bank recoup their money on that property at auction if you default on it.
It really isn't.
It's an open market valuation.
An auction sale valuation on a 'normal' owner-occupier property is usually very different to open market, often 20% lower. Lenders wouldn't do much business if they only lent on auction figures.
Hefty
Not true. Valuations are done by surveyors. They will not value a house in need of total renovation the same as one in minty-fresh condition.
As far as I know there are no lenders that do drive-by valuations any more. Even when they did they at least looked at the agent's photos to get an idea of condition.
Likely to, but not definitely. Some surveyors are more aggressive than others, some can be convinced to change their mind if you or the agent can show them they've made a mistake.
Your options are :
If 2 (and 2 is probably best) you'll need to know what figure you can actually make it work at, so talk to your mortgage advisor. They may say you can still buy it at a figure over the valuer's valuation by putting a bigger deposit down.
Your main argument is that anyone else will *probably* get the same down valuation so the owner's only hope is a cash buyer and do they really want to risk it or would they rather have a bit less from you now.
Good luck fam.