Mortgage lender has down valued potential property purchase

[surveyor]

timetex said:

surveyor said:

What's the best evidence of value between willing buyer and seller? Well often it's the agreed sale price...

Most valuers will start with this in their mind. It's only when they have evidence to show the price is higher than they are prepared to justify that it will get knocked - or if there are value significant defects.

What about if there is evidence of local (or national) price stagnation and prices are beginning to drop? Would they down value based on a trend just starting, in order to protect the mortgage company's investment?

They would not down value to protect a mortgage company's investment. If however values are falling and the evidence is showing this, then the Surveyor has to make a judgement call, based on how old the evidence is.