Help needed on undervalued home

geordiepaul2001

Hi all,

I have had an offer of £110,000 inc fixtures and fitting accepted on a house which originally came on the market for circa £140,000 last year.
I had a mortgage agreed through the Post Office, however the valuation has come back at £98,000

If I was to attempt to get a mortgage through another lender would a different valuer possibly give a vastly different valuation?

What are the normal avenues from here?

Paul

princessamy86

Why do you want to pay more?!?! Get the EA to go to the vendor with a copy of the survey and point out why it has been downvalued, the same things will come back with any buyer and it is usual for vendors to either accept the lower price, or do the work themselves to bring it up to value. What were the specific points raised?

zone

Perhaps it was overvalued in the first place. Prices are still dropping so your next valuation could be lower than the one you have.

geordiepaul2001

There was no copy of the valuation report on the file so they were unable to tell me why.
Not sure if thats normal

pawpurrs

I would use this as a chance to get the price down, however I dont agree with Princessamy another valuer may well value it at the price offered, I have seen this happen many times.

brit1234

I wouldn't say it is under valued, it is more likely overvalued. The long term trend is for further large drops. Yes there will be occasional small rises from time to time but you always get that in crashes.

Remember prices of houses in general are still highly overvalued despite correction.

The post office simply doesn't want to over lend for a fast depreciating asset.

cpdc1030

I just had the same thing happen to me. Property (in a very desirable area of NW London with very few similar on the market) was listed at 189k - about 50k less than 2007 prices. I was the first to view. There were already 8 other viewings arranged for the weekend, so I knew I had to act fast. I know the property would be very popular with landlords as the lettings are very expensive in the area.

My initial offers of 174.5k and 180k were rejected, and then a final offer of 185k was accepted. However, the valuation was £165k - only reason cited that it is ex local authority. At first I was incensed and angry, but I realized that with the level of interest in the property I'd have no chance to renegotiate. I've spoken to colleagues and they have advised this is very common now, the valuation will be present value subtract 10 or 15%.

It will be tough to swallow, but luckily I can afford the extra downpayment.
In the end, the only thing that matters is whether it makes sense for you to buy the property and if you will be happy with it. In my case, buying will be much cheaper than renting in the exact same block (even if interest rates go back up).

However due to the fact that the property had been on the market for quite some time and reduced substanitally, I think your barganing position for a reduction is quite strong.

kunekune

Why would it bother someone?

Well, in the first place, it reduces what they can borrow, since the LTV is based on the valuation not the asking price. And then, if they need to renegotiate so they can still afford the place (ie, don't want to pay more for a house that is worth less), they might know that the vendors will say No No NO, and that'll be the end of it. And possibly of course they could be 'in love' with the house (we're not all hard-headed seventh time purchasers).

geordiepaul2001

Unfortunately the difference is more than our ten percent deposit.
We really like the house, its the ideal location, size and everything else we have been looking for.
Tempted to try with another mortgage company

poppysarah

Reduce your offer.

Seriously you'd be insane to pay more than it's been valued at.
You'd probably be wise to pay less.

A local EA claims houses have been selling for 25-30% under peak already.

geoffky

its not undervalued...its been priced for market....no such thing as undervalued in this market..

check sold prices here

http://www.nethouseprices.com/index.php?con=sold_prices_street&year=three&house_style=All&house_age=All&street=&outcode=CH66&incode=&search_radius=&searchType=&find_street=&find_town=&find_locality=&cCode=EW&order=&start_limit=20&start_limit=40&curPage=3