New Build - Mortgage Valuation lower than purchase price!! PLEASE HELP

clairey22 · 12 June 2008 at 6:35PM

Hi Guys,

I really hope someone can give me some advice please.

We are first time buyers and have reserved a new build property (3 bedrooms in Crawley, West Sussex). The reservation fee paid was £2000. It has already been built.

The purchase price was £225,260 (it was originally advertised as 260K and then 230K.

There is a deposit incentive paid for by the builders of £11,263 subject to us completing in 14 days.

We have a £65,000 deposit of our own.

We have to use the builders broker who has arranged a 5 year fixed mortgage with Nationwide for us for £148,997

All was going well (we are surposed to complete tomorrow). However, the mortgage offer has arrived in the post today with the valuation of £200,000!!!

The reasons are due to it being near some offices (it is not overlooked) and near the railway line (it is but it is only slow trains - and they are not overnight). It made me laugh as it said it was one of the least desirable houses on the development when I actully think its one of the best ones).

I knew nationwide would value it at the price minus the incentive or the 2nd hand value - whatever is the lowest, but I didn't think it would be this low!!!

Please can someone give me some advice? What should my next step be?

Should I go in to the sale office and ask them to lower the price? (they already made a big thing about what a good deal we are getting and how the price with the incentive 214K is the lowest they can go).

Thanks in advance for your help.

Claire

poppysarah · 12 June 2008 at 6:45PM

Tell them you'll give them £190 for it.
£180...
170...

Doozergirl · 12 June 2008 at 7:14PM

Yes renegotiate! They get no sale if ou walk away and I say if it's downvalued by a surveyor, it's their problem. It may well happen again with another buyer so they should consider hard. Call the mortgage broker first and ask them to speak to the sales office. Save your energy.

I love the fact it's through their broker as well. If they want to make such a deal out of the price they should make sure that mainstream lenders fro their own panel agree with them. :rotfl: £200k it is then.

Kez100 · 12 June 2008 at 7:17PM

I'm with Doozer. If their valuers say it's worth that then I'd revise my offer - just as you would with an old place that you suddenly found needed a new roof.

200 less agreed incentives (max).

Bf109 · 12 June 2008 at 7:22PM

£200k less agreed incentives. Minimum! Otherwise you walk away.

The builders are up against it. Their share prices are in tatters. Have no mercy!

clairey22 · 12 June 2008 at 7:33PM

thanks guys for your reply. I am thinking about going in tomorrow to see what thay say. The trouble is I think the mortgage company have valued it too low. I think it is a good price at 214K. There is nothing in this area anywhere near as good for that price. There have been other houses sold in the development but I can't seem to find out the sold prices as they are not on the land registry site (or other similar sites) yet as they were all sold recently.

plus I if I pull out I will lose my 2K reservation fee.

thanks
claire

Doozergirl · 12 June 2008 at 7:39PM

clairey22 wrote: »

thanks guys for your reply. I am thinking about going in tomorrow to see what thay say. The trouble is I think the mortgage company have valued it too low. I think it is a good price at 214K. There is nothing in this area anywhere near as good for that price. There have been other houses sold in the development but I can't seem to find out the sold prices as they are not on the land registry site (or other similar sites) yet as they were all sold recently.

plus I if I pull out I will lose my 2K reservation fee.

You must not think like that. They need to consider the marketplace and whether they want a sale or not.

You don't need to threaten to walk away even. You tell them the survey has downvalued the property and therefore that is the price you want to pay.

the fact that there are no comparables for the surveyors to look at either is a good thing.

Fight! You've been given a big fat weapon and they are on the backfoot!

Kez100 · 12 June 2008 at 7:39PM

Ohhhh my. No wonder some people find themselves in financial difficulty.

Look, all the houses in your town could go on the market for a million quid, doesn't mean they are worth that. Most were over priced months ago when EAs thought prices were heading for the moon, and not priced now- when they have already fallen from peak by a significant amount and continue to do so. Even if the other homes on the estate were sold for a lot, who cares? The market has fallen month on month since their offer was accepted. If the valuer thinks its the worst position on the estate - while you think it the best - it may be worth asking him why as you may have missed an important point which a future buyer from you may recognise.

I don't know what your occupation is and if you a sony award winning property valuer, I apologise. Chances are you are not. Overpay if you want but don't cry over spilt milk when your neighbour moves in having paid 190k (or less).

Bf109 · 12 June 2008 at 7:58PM

The mortgage company cannot value it too low. Almost by definition.

chrisandanne · 12 June 2008 at 8:14PM

Clairy, The above posters are right, if the surveyor says it's worth that, that's what you should offer or below because they're falling by the day.

Gird your loins and get in there. And good luck.

The great thing is......60K plus wiped off the price ...yesssss.
Ax

Bf109 · 12 June 2008 at 8:20PM

chrisandanne wrote: »

Gird your loins and get in there. And good luck.

How exactly does one go about girding ones loins? I am most curious and would greatly love to gird my loins one of these days.

New Build - Mortgage Valuation lower than purchase price!! PLEASE HELP

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