There has been a lot of recent press about down-valuations and their adverse affect on the property market. A recent article by the BBC Business team highlighted this:
We all know that valuations are key to any property deal, as they have a direct effect on the loan-to-value and loan amount any mainstream mortgage lender will offer. We speak to hundreds of investors on any given month and we are finding an astounding percentage of investors have had deals fall through with other investment companies due to down-valuations.
We find this surprising as we have had practically a zero percent down-valuation rate in 2009! Why? Several reasons:
1) Our due diligence process is extensive. We know the areas we target inside out and hence only purchase properties we know offer excellent value and stack up rental wise.
2) We are buying in the vast majority of the properties we offer out to investors in order to refurbish them and line tenants up prior to completion. Therefore, our bank values the property prior to us buying and there is a RICS valuation already in place which is less than a few months old. This also decreases the likelihood of a down-valuation a few months along the line.
At Property Investment Portfolio we are so confident that our properties will value to prices stated that we have a promise to our investors. Our promise is that should your property not value by a RICS surveyor (independently instructed by your chosen lender) to the price we have quoted, we will drop your price in line with the down-valuation or refund any fees you have laid out – including valuation fees!
So as always at PIP – we are reinforcing our confidence in our products with our unique guarantee! For more information on our deals and service on offer. please call us on 01159 289 333 or email us firstname.lastname@example.org