Why are so many sales falling through?

superfran_uk

fatpig wrote: »

Why would you want to pay more than something is worth anyway? That's not how free market economics is supposed to work

At a guess, because you like the house and the area, you really like it, and it's somewhere to live, not somewhere to make money out of?

superfran_uk

Surely though, it is all subjective? Something is only worth what someone will pay for it? Two valuations could be different, unfortunately the mortgage-lender's is the final say but it doesn't necessarily mean they are "right"??

thegibdog

charliee wrote: »

we were lucky, the vendors are desperate to sell and had found a house they loved so didnt want to lose the sale when they had already paid out for surveys etc..
we offered 146k in good faith that it was a fair/good offer and reflected the value as we are not experts...(it was actually up for 145-155k)
as it was when the valuation came back we went straight in with 142k meeting them halfway and said we didnt want to haggle over it.. they ummed and aah for about 5 seconds and accepted it.. i think they knew the house wasnt worth as much as they had it up for (we had offered lower intitally but they had turned it down) so alls well that ends well... so far... and no hard feelings... phew..

Just out of interest, why were you so willing to pay over the valuation? If the vendors were desperate to sell I don't understand why you didn't go back in with an offer at £138k? Is it a really nice shed?

Ron2256

superfran_uk wrote: »

Surely though, it is all subjective? Something is only worth what someone will pay for it? Two valuations could be different, unfortunately the mortgage-lender's is the final say but it doesn't necessarily mean they are "right"??

You may think the house is worth more than the valuation and be prepared to pay the price. But the bank is not interested in your valuation. If they have to repossess, they are not going to sell the house to you obviously. They are going to sell the house to other people (the market) and the bank won't want to wait for the one person who will fall in love with the house and pay top dollar.
They will price the house to sell. (valuation price)

treacle32_2

Its a shame they did'nt do that from the onset!!!! They were all to happy to agree with the hefty prices asked by EA (earning millions in interest)and now the banks win yet again at the price of the sellers. The only ones to win are those who have a lot of equity and very little mortgage and first time buyers, and based on how the banks are run and the total incompetance of the financial sector, WOULD YOU trust the valuation given by ONE person from the bank, who has probably never owned a property in their life and not long been in the job for 2 minutes... like our previous valuer!! I don't think so! I understand that their say is final... but i can't help thinking it is a little unfair especially if both parties are happy.. and they can afford it of course! The buyer is still responsible for any outstanding debt on the property should they be repossessed anyway. A 5-15,000 deficit in valuation on an average house price isn't worth the bank worrying?? its a drop in the ocean for them! just worry for the buyer and seller!

charliee_3

thegibdog wrote: »

Just out of interest, why were you so willing to pay over the valuation? If the vendors were desperate to sell I don't understand why you didn't go back in with an offer at £138k? Is it a really nice shed?

weeeeeeeellll... i spoke at length to the surveyor about his valuation and he told me the houses that he had compared it to and they were all on the 'not as nice' estates in the town, plus they didnt have the same potential for expansion as this one as this has a good sized garden and its a corner plot so easy to see the potential. Plus the others were ex cuncil whereas this one has always been private (can be a good or bad thing) There wasnt really much houseprice info for the direct area as its the sort of road where people stay put.

SO... we decided to give it the benefit of the doubt that it was a nicer than average house and we really like it, its a house we hope we will be happy in for quite a few years and we are planning to make the house grow with our family, so we felt it was worth a bit more to us than the surveyor told us. We are happy with 142k as that was pretty much our original offer (which they rejected flat out at the time) and we are borrowing the same amount (as the mortgage valuation came out at 146k) so we have an extra 4k to put toward the garage conversion, carpets, etc that we werent expecting and the vendors arent too much out of pocket so everyone is happy and they are still leaving curtains, blinds, etc (which if they were feeling bitter about it im sure they would take EVEYTHING and as its our first house every little helps).

we could have gone in with 138k but it probably would have ended up in the middle anyway so we just went straight in with that and said we we werent going to mess about . they did say 144 and they would throw in the cooker (its really NOT worth 2k, more like £100!) so we wouldnt budge.

and it is a good shed, it is not very old and cost them about £800 so therefore we have an £800 shed that we dont have to put up ourselves saving us hassle....

so thats why!!

alexlyne

Just had a thought... we were in the Lender's office a few weeks ago, they said we couldn't keep our house to let out unless we had 85% LTV... the 'V' being a random number genereated from their computer. If we wanted to query this, we could have a valuation done.

Anyways, as we cannot afford to do this, and are therefore selling, I am doubting whether we would get as much for the house as we would otherwise expect. Especially if they do not take otehr factors into consideration.

Our house bought mid-05 for 89k. Since then completely re-done kitchen and cleaned up deteriorating garage. Hoping to sell for 85-90K this year, EA reckoned worst case of 80K. Lender says our house is worth 78K.

Based on this, it is a bit lower than I was expecting.

But, to add to this, our house is on a main road, quite busy. BUT, they are 25% through building a by-pass (completion end 2010), and the bit of road we are on will become 1-way (not affecting the garage which is via back-lane). Surely this fact would actually help maintain high prices? or will a valuation not consider this?