My buyer's mortgage valuation came in low. What now?

What is a down valuation?

A down valuation is when the surveyor carrying out the mortgage valuation for your buyer's lender values the property at less than the price your buyer agreed to pay. The lender only lends against its own valuation, so the buyer is left with a gap between what they can borrow and what they offered.

It is not a comment on you, and it does not change what a willing buyer is prepared to pay. It is one cautious lender protecting itself. Down valuations usually surface about four to six weeks after an offer is accepted, when the mortgage valuation is carried out.

Why do down valuations happen?

• A cooling or flat market, where the surveyor expects prices to be softer than the offer suggests.
• Thin evidence locally, with few recent comparable sales for the surveyor to lean on.
• An asking price that ran ahead of the wider street or postcode.
• A competitive sale where two or more buyers pushed the agreed price above the surveyor's view of fair value.
• Condition or non-standard construction the surveyor flags as harder to lend on.

What should I do if my buyer's valuation comes in low?

1. 1. Get it in writing

   Ask your agent to obtain the figure and the surveyor's reasoning from the buyer's side, so you are reacting to facts rather than a rumour about the number.

2. 2. Do not drop your price on the spot

   A down valuation is the start of a conversation, not a verdict. Reducing immediately gives away room you may not need to lose.

3. 3. Pull together three comparables

   Gather three recent, genuinely similar local sold prices that support your figure. These are the evidence a valuation challenge stands or falls on.

4. 4. Ask the buyer to challenge the valuation

   The buyer, through their broker, can submit your comparables to the lender and request a review. Some surveyors revise the figure when shown solid evidence.

5. 5. Explore a different lender

   Valuations vary between lenders. If the buyer applies elsewhere, a new surveyor may reach a different figure, so a switch can quietly solve the problem.

6. 6. Talk about sharing the gap

   If the figure holds, a part-renegotiation, where the buyer covers some of the shortfall and you move a little, can keep a committed buyer in place.

7. 7. Set your floor with real numbers

   Before you agree any reduction, work out what you would actually walk away with at each price, so you negotiate from a clear net figure rather than a feeling.

What are my buyer's options?

Should I just drop my price to the valuation?

Not as a reflex. A down valuation reflects one surveyor's caution, not the ceiling of what a motivated buyer will pay. Before you reduce, weigh how committed your buyer is. A buyer who has paid for searches, instructed a solicitor and has their mortgage application in is worth bending a little for. A buyer using the valuation to chip a strong offer they made days ago is a different situation.

Read commitment by what has been spent and instructed, not by what is said. Keep your own solicitor moving so you lose no time, but do not come fully off the market or rack up large costs until your buyer is financially committed. ValuQ gives UK homeowners free, side-by-side property valuations from competing local estate agents, so if the sale cannot be saved you can compare agents on merit and relist quickly, on your terms.

A down valuation caps what one lender will lend. It does not cap what a willing buyer will pay, and it does not have to end your sale.