Bidding war going ABOVE asking price

AMILLIONDOLLARS

NickDurham wrote: »

Yes, because I'm assuming that the valuation is going to reflect market value acc to mortgage providers (NatWest in this case). It's affordable, though not as affordable as we'd have liked, but as long as it reflects the value then we'd pay it.

I would assume nothing. The Building Society valuer may well value it at your offer price! They have been known to do this in the pass and as the property may have already been valued low by the EA, you may find you have nothing to bargain with. Go in with a price you will be happy to pay, that way you'll not be disappointed or worried that you paid too much

AMD

NickDurham

AMILLIONDOLLARS wrote: »

I would assume nothing. The Building Society valuer may well value it at your offer price! They have been known to do this in the pass and as the property may have already been valued low by the EA, you may find you have nothing to bargain with. Go in with a price you will be happy to pay, that way you'll not be disappointed or worried that you paid too much

AMD

If the EA has valued it low, and the bank values it at our price, then fair enough. But I can't see the bank knowingly overvaluing a property in the current market to a couple who have a 10% deposit.

NickDurham

Just an update: NatWest tells me that 1 in 2 valuations are currently coming in at under the agreed price. Quite a figure! :eek:

AMILLIONDOLLARS

NickDurham wrote: »

If the EA has valued it low, and the bank values it at our price, then fair enough. But I can't see the bank knowingly overvaluing a property in the current market to a couple who have a 10% deposit.

You'd be surprised, see below low - a return to the madness!

http://news.bbc.co.uk/1/hi/business/8037347.stm

AMD

NickDurham

AMILLIONDOLLARS wrote: »

You'd be surprised, see below low - a return to the madness!

http://news.bbc.co.uk/1/hi/business/8037347.stm

AMD

That has nothing to do with valuations though. And it hardly seems like a return to madness. If they think prices have, say 10% left to fall rather than 30%+ this time last year, then it's surely understandable that they should be more willing to go into more mortgages of 75-85% in particular. Even so, they are dependent on getting realistic valuations.

AMILLIONDOLLARS

NickDurham wrote: »

That has nothing to do with valuations though. And it hardly seems like a return to madness. If they think prices have, say 10% left to fall rather than 30%+ this time last year, then it's surely understandable that they should be more willing to go into more mortgages of 75-85% in particular. Even so, they are dependent on getting realistic valuations.

I know this has nothing to do with valuations, but they are starting to relax their criteria on how much deposit one is now allowed to put down, you yourself are putting down 10%!

AMD

NickDurham

AMILLIONDOLLARS wrote: »

I know this has nothing to do with valuations, but they are starting to relax their criteria on how much deposit one is now allowed to put down, you yourself are putting down 10%!

AMD

I know. But I've always felt it should be based on individual circumstances. 10% can be a lower risk in some circumstances than 15-20% in others. In our case, we're in an area that hasn't been hit that hard by price drops, our finances are sound, job is secure, future earnings prospects are excellent, and we're opting for a 5yr fixed rate. If you were in an area where values were plummetting, your job was in finance, and you went for a 2yr deal, that seems a LOT riskier for the bank. I really don't think the "madness" is returning, just a more sensible approach. If it got back to personal face-to-face interviews and case-by-case reviews THEN we would be back at proper lending IMO.

wondergroove

jamtart6 wrote: »

I never saw a HIP for my house, bought it in December, is there really a fine for not giving it to people?? I would love to get them fined as harshly as possible, they were atrocious. " Have you got a back door key for the house?" ..."no you'll have to get your own cut", "how do we go on about getting electricty connected again?" "no idea" "haven't you ever sold a repossessed house before" "yes of course, but no one has ever asked for a back door key, or how the electricity gets reconnected" .....err what??? LOSERS!

edit: and yes I am bitter about how badly we were treated from start to finish!

Quite uncanny jamtart, you seem to have gone through exactly the same hassle as we did when purchasing our house. I have never met such incompetent people in my life, no wonder the housing market has been going down the tubes when you have people like that in the business. We were promised so much by the EA but they delivered nothing. I think just because its a repo they wash there hands of it and assist as little as possible. I did get extremely wound up with one of them which seemed to do the trick to a certain extent......

suisidevw

Nick, updates on putting offer in please?!

NickDurham

suisidevw wrote: »

Nick, updates on putting offer in please?!

136k accepted. Now we start the application process. EA told us the vendor was aware thatb the valuation would prob come in low and there would be the need to negotiate. Totally bizarre situation.