What to do when the buyer's valuation comes in low
A down-valuation is not the market telling you your price was wrong. It is one valuer, on one day, with one instruction.
A lender's valuation is commissioned to protect the lender, not to establish the market price. The valuer is asked whether the property is adequate security for the loan, and their figure is frequently conservative, sometimes based on a desktop assessment rather than a full inspection.
When it comes in below the agreed price, the buyer's mortgage is limited to the loan-to-value on the lower figure, and the buyer must find the difference in cash or ask you to reduce the price. The sale usually stalls at that point.
Establish why it came in low
The cause determines the response. A valuation can be low because of the property, because of the comparable evidence used, or because of how the valuer was instructed.
- The valuer used comparables that are not genuinely comparable — different type, condition or location
- The property's condition was assessed more harshly than the marketing suggested
- The valuation was done without a physical inspection, which some lenders permit
- The local market has genuinely moved since you agreed the price
- The property is unusual or has few comparable sales, making any figure uncertain
The options
Reducing the price is one option, and it should be the last rather than the first. There are several others, and which applies depends on the buyer's position and the strength of your evidence.
- Challenge the valuation through the lender, providing your own comparable evidence for the valuer to reconsider
- Ask the buyer to increase their deposit to cover the shortfall, which is possible if they have the funds
- Suggest the buyer approaches a different lender, since another lender's valuer may take a different view
- Provide the valuer with information they may not have had — a floor plan, recent nearby sales, details of improvements
- Negotiate a split of the difference rather than absorbing the whole reduction
- Return to the market if the evidence genuinely supports your figure, which is a real option in a strong market
When to accept it
If the valuation is defensible — the comparables are genuinely comparable and the figure reflects a market that has moved — then arguing is delaying the inevitable. Accept it, and consider whether the whole market has shifted, in which case your price was set against stale evidence.
The judgement is whether the valuer is wrong or merely cautious. One low valuation in a strong market with good comparables is worth challenging. Two independent valuations at the same lower figure is the market telling you something.
Common questions
- Can I challenge a low mortgage valuation?
- Yes. You can ask the lender to reconsider and provide your own comparable evidence — recent sold prices of genuinely similar properties nearby. Some lenders charge for a revaluation and some will not reopen a case, so it is worth asking before spending money. Your estate agent should be able to supply the comparables.
- Does a low valuation mean my house is worth less?
- Not necessarily. A lender's valuation is commissioned to assess security for a loan, not to establish market value, and it is often conservative. If the comparables genuinely support your figure and other viewers agreed with it, the valuation may simply be cautious. If two or three independent valuations all come in lower, that is a stronger signal.