A valuation survey is when the surveyor determines the final value of the property, based on a detailed inspection of the interior and the outdoor areas. A failed valuation survey can occur for a number of reasons.
Firstly, it may be that the seller overestimated the price of the property or that the surveyors reported a number of serious defects that would be expensive to repair or replace. In order to act in the seller's best interests, the conveyancing solicitor may need to reduce the sale price if the original figure is likely to discourage interest.
If the property was found to be overpriced the buyer will be able to negotiated it with the seller. Buyers may be able to negotiate a significant discount on the purchasing price if such defects are present. In certain circumstances, a valuation may be above the actual asking price.