Expert: Huge disparity currently exists between home credit valuations

Expert: Huge disparity currently exists between home credit valuations

An expert has said there is often a big difference between how much sellers and buyers believe a property is worth.

People seeking competitive mortgages and mortgage deals and residential property prices often value houses at much less than the seller they are looking to purchase from, an expert has said.

According to Selwyn Lim, director of online resource Mouseprice, there is currently a "huge disparity" between the asking prices for many homes and the number of buyers in the UK market.

This unrealistic pricing structure has subsequently caused a dip in the amount of transactions going through in recent times, Mr Lim added, because those looking for a home credit package such as a tracker mortgage are eager not to pay over the odds for a property due to the effects of the global economic downturn.

The Mouseprice official went on to say that this trend is largely due to the fact that retailers are "usually quite aware" of what their properties were worth in 2007, which therefore makes them "very reluctant" to put them on the market for anything less than that value, despite being fully conscious that "the market has not performed well".

Mr Lim's comments came after the publication of data yesterday (October 18th) by Rightmove, which found that asking prices for homes have gone up by an average of 3.1 per cent so far this month, which represents a continuation of the trend seen over the last year.

This is in contrast to research conducted by Halifax earlier in the month (October 7th) - which showed that house prices declined by 0.9 per cent over the duration of the last quarter and by 3.6 per cent in September alone - but also stated that these costs have gone up by 2.6 per cent in the previous 12 months.

And Mr Lim feels that this trend is likely to continue, with large price changes unlikely in the coming months.

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