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  • FIRST POST
    • Newtown
    • By Newtown 10th Jul 17, 10:28 AM
    • 42Posts
    • 20Thanks
    Newtown
    Would you be concerned ?
    • #1
    • 10th Jul 17, 10:28 AM
    Would you be concerned ? 10th Jul 17 at 10:28 AM
    We are buying a property (FLAT) and its been down valued by £10,000
    I am a bit nervous about this.

    Asking price £170k
    Bank Valuation £160K

    What I would like to know is what % of properties do not get the full valuation. is this Normal ?
    I am NOT trying to buy the property on the cheap but I do not want to pay more than what the property is worth. (i know few will say its worth what you are willing to pay etc etc. that does not help me)

    The Property in question is with a clause in lease that it cannot be rented out.

    We like the property but don't want to end up buying a prison for ourselves with negative equity an unable to sell. Has anyone Owned any property with such restriction ? whats your thoughts ?
Page 1
    • remembermee
    • By remembermee 10th Jul 17, 10:33 AM
    • 58 Posts
    • 23 Thanks
    remembermee
    • #2
    • 10th Jul 17, 10:33 AM
    • #2
    • 10th Jul 17, 10:33 AM
    Ours was. We had offered 167 but house valued at 158. We tried to negotiate with little success. In the end we made the shortfall up as the bank was happy with our LTV. We got it for 165. Nothing wrong with the house at all and I don't actually think it was over priced. This was 3 years ago. Similar houses here are selling for 200k now.
    • ReadingTim
    • By ReadingTim 10th Jul 17, 11:03 AM
    • 2,000 Posts
    • 2,917 Thanks
    ReadingTim
    • #3
    • 10th Jul 17, 11:03 AM
    • #3
    • 10th Jul 17, 11:03 AM
    What I would like to know is what % of properties do not get the full valuation. is this Normal ?
    I am NOT trying to buy the property on the cheap but I do not want to pay more than what the property is worth. (i know few will say its worth what you are willing to pay etc etc. that does not help me)
    Originally posted by Newtown
    What's "normal" is irrelevant, and there is no objective measure of what a property is "worth". Your attempt to find help by referring to some set of "rules" or appeal to a higher "reason" is bound to fail as they simply doesn't exist.

    A property is only worth what the buyer and seller agree on. A price the buyer is willing and able to pay, and that the seller is willing to accept.

    The bank thinks it's worth £10k less than you do. So, your choices are to find that £10k yourself, or see if the seller will accept £10k.
    • Can you find that £10k? If not, game over.
    • Will the seller accept £10k less? If not, game over.
    • Could you meet in the middle? If not, game over.

    Finally, the fact you're interested in it means it's not unsellable. It's been sold before and it'll be sold again. There are a million and a half other factors which affect whether you sell it for more or less than you bought it for, so speculation is pointless. If you like the place, and can agree on a price, go for it. If you can't, then it's a non-starter, but the only person who can decide is, you, subject to the agreement of the vendor - the internet can't help you.
    • goodwithsaving
    • By goodwithsaving 10th Jul 17, 5:08 PM
    • 619 Posts
    • 936 Thanks
    goodwithsaving
    • #4
    • 10th Jul 17, 5:08 PM
    • #4
    • 10th Jul 17, 5:08 PM
    Where in the country is it?
    Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
    • Newtown
    • By Newtown 11th Jul 17, 10:38 AM
    • 42 Posts
    • 20 Thanks
    Newtown
    • #5
    • 11th Jul 17, 10:38 AM
    • #5
    • 11th Jul 17, 10:38 AM
    Bournemouth

    Where in the country is it?
    Originally posted by goodwithsaving
    • Crashy Time
    • By Crashy Time 11th Jul 17, 12:04 PM
    • 4,816 Posts
    • 2,106 Thanks
    Crashy Time
    • #6
    • 11th Jul 17, 12:04 PM
    • #6
    • 11th Jul 17, 12:04 PM
    Ours was. We had offered 167 but house valued at 158. We tried to negotiate with little success. In the end we made the shortfall up as the bank was happy with our LTV. We got it for 165. Nothing wrong with the house at all and I don't actually think it was over priced. This was 3 years ago. Similar houses here are selling for 200k now.
    Originally posted by remembermee

    Probably not as many selling as three years ago though?
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