"stuart noble" wrote in message
...

R Taylor wrote in message ...
MM wrote:
I have now had an offer. It is almost 10% below the asking price.
Given the current market situation, what are your comments?
I know 2 people in the process of buying/selling at the moment and all 4
properties are said by the building society surveyors to be 10%
overvalued.
Sounds like official company policy.

I've written about this practise before; -
IMHO, it's part of a scam ... say you want to purchase a house
for 100 units- you've got 20 units for a deposit and wish to
borrow 80 units (on mortgage). The property will be valued
by the BS surveyors at 70 units and that's all they'll advance
as a mortgage - they'll tell you that if you default they'll
only be able to realise 70 units in a sale. You moan and groan
muttering 'what am I going to do?': at this point somebody
in the money-supply side says;- 'Voila! if you purchase a
single-premium insurance policy for the 10 units - so we
guaranteed our 80 units if you default -we can advance the
80 units you request! "
"Oh", you say"We're committed to the hilt and can't possibly
find the money to pay such a single premium!"
They'll say;"That's all right, we'll ad it onto the loan -lending
you 81 units- and take the premium off that - you'll never
notice the slight increase in monthly payouts!"

Cynic? Moi?
If the poster's _friends_ had said ; one surveyor said
it was £30K overvalued - or any specific figure - I
wouldn't be suspicious ... but _both_ by _10%_ ..?

--

Brian