Valuation Report 8k deficit

dunstonh

At the end of the day. Its a bit of poker game here. Who is going to walk away first? You cannot afford to make up the difference so you only have the choice of reducing your offer based on the reduced valuation from the lender's valutation or to walk away now without attempting that.

The vendor has a choice to accept your reduced offer or to tell you no thanks and let you walk away.

You are certainly not unusual and it's just one of those things when it comes to buying a house. The vendor can put the price on the house whatever they want. They can choose to accept or decline your offer even if you think their price is wrong. If they want to move, they could lose the house they are looking at of a delay could cost them more on the mortgage they are paying on the current house.

So, as I said, you often have to treat it like a game of poker. Is he bluffing? will he fold or will up the stakes?

xela_17

As a look at the other side, I feel sorry for the poor vendor. Our house is currently on the market at £114950 and there is no way we could accept a lower offer if the valuation was 8k less. We just couldn't afford to move then. I hope your vendor is not in the same position as then if neither you nor the vendor can afford to make up the difference that would be awful!

ginger_lion

Good point - our vendor doesn't have a chain, but even so it will be hard for them to accept less. I don't want anyone to lose out, but I also don't want to pay over the odds if the property needs significant work. I guess we'll wait to see the report tomorrow and take it from there.
In your expert opinions, is it worth trying another lender with a different valuer? What if it just comes down to a difference of professional opinion between the EA and the valuer?
:T Thanks all for your advice

Doozergirl

You have to see what the report says. If you don't understand any of it then post some of it up and we will help.

When did your vendor purchase the property? Did they buy it as a refurb?

Welcome by the way!

ginger_lion

Thanks - the vendor has had it for over 10 years. Has been rented out for last 8 years.

Debt_Free_Chick

ginger_lion wrote:

Thank you all.
Other houses on the street have varied between 75k and 110k over the last two years, presumably as all in different states of repair. The one we want is newly refurbed - new kitchen, bathroom, flooring and has an extension which others do not. We were happy that 101k was a fair price in the context of everything else we had looked at. I spose it must have some significant hidden problems - we will find out tomorrow when the report arrives I guess. Don't think I'll be sleeping tonight!

What kind of survey did the valuer do? If it was just a valuation for mortgage purposes, he might only have driven past the house and not even gone inside :eek:

Thefunkygibbons

If you go to a different lender you will end up with another valuation fee but no guarantee that you will get a better valuation

Wait for the report first

Debt_Free_Chick

ginger_lion wrote:

It is a FTB house - like I said above, surely if they got another buyer the same thing would happen again...

It depends on how big a mortgage they need. If they have a £10k deposit and offered £101k, they would only need a mortgage of £91k, which is 98% of the purchase price and some lenders will advance that much.

ginger_lion

Yes it's just a mortgage valuation survey.

Debt_Free_Chick wrote:

he might only have driven past the house and not even gone inside :eek:

Can that ↑really be true? I give up now if it is...

Debt_Free_Chick

ginger_lion wrote:

Yes it's just a mortgage valuation survey.


Can that ↑really be true? I give up now if it is...

Yes .... very common - sorry. Wait until you get a copy of the report. It won't say "drive by" but read it carefully - you can normally tell if they've been inside. If it's only a single page summary, the chances are they haven't been inside as you will see that many of the details they quote (e.g. no of bedrooms) can be gleaned from the EA details.

Remember that the mortgage lender is only interested in whether the approximate value of the property is sufficient security for the amount you want to borrow.

Post back when you've seen the report and don't give up just yet