New Build Valuation Lower than asking Price!

pizzagirl

JonathanJ wrote: »

Now I am left sitting in the middle some ware with Fairview insisting it is worth what they are asking and the lender saying it’s worth £20k less than that and neither are willing to budge.

Who would you believe? the developer or the lender? Somehow I think the lender has rather more credibility.

JonathanJ

After far to many phone calls today Fairview have decided they will not budge on the price. Apparently the reason it was valued so low is because the surveyor that my lender uses only goes by the second hand value of the house. Leaving a bit of a gap!
The broker is now in the process of credit scoring me with a different lender in the hope that the valuation comes back different. This also means I have to pay out for the survey again!
If it comes back the same or similar then I may have a chance of knocking them down but otherwise it would seem I don’t have a chance.
I am hoping it comes back the same, as although the chances of me loosing the flat are high if I do get it I will be paying 20k less than I originally thought. And I can always look else ware.

Fingers crossed!!!!!!!!

Emmzi

your developer is talking cack.

the very day you buy it your home is second hand.

do you believe it drops 20k in 24 hours?

JanCee

JonathanJ wrote: »

After far to many phone calls today Fairview have decided they will not budge on the price. Apparently the reason it was valued so low is because the surveyor that my lender uses only goes by the second hand value of the house. Leaving a bit of a gap!
The broker is now in the process of credit scoring me with a different lender in the hope that the valuation comes back different. This also means I have to pay out for the survey again!
If it comes back the same or similar then I may have a chance of knocking them down but otherwise it would seem I don’t have a chance.
I am hoping it comes back the same, as although the chances of me loosing the flat are high if I do get it I will be paying 20k less than I originally thought. And I can always look else ware.

Fingers crossed!!!!!!!!

Don't pay for another survey - why should you. Is the developer going to keep asking for valuations until they get the one that they want? On the other hand why shouldn't they whilst you are paying for them. Now is the time to get tough, you have paid for a valuation stick with it, if the developer thinks that they are going to sell to someone else let them try. Leave your valuation offer on the table and wait, but be prepared to walk away if necessary. It is a buyer's market at the moment, for the first time in years - make the most of it and get yourself a good deal.

Oh and if they start offering incentives such as carpets and white goods, tell them that you are expecting them to be thrown in anyway.

JonathanJ

I have had a look at the land registry sites, but not too much avail. The most recent sale I can find is around the end of Feb, and they were around 170k but there was the odd 2bed dotted in there around 155k.
But with the current rapid change in house prices I could have some luck.
In the postcode I searched the average sale price dropped from 202k too 189k from December to March. But then that is 13k in fore months not 20k!

At the end of the day I am not afraid to walk away, rather that than loose 20 grand! If I do I wont even loose my £1000 holding deposit because I refused to give it to them unless they guarantied I would get it back if I couldn’t get a mortgage.

JanCee, you are completely right, how many valuations do they want me to pay for till they get one they like the sound of. If they want it done they can pay for it. This other lender (principality) also want a slightly larger deposit, which I just can’t afford, I was already on my uppermost limit so that is out of the question anyway.
Someone here may be able to confirm this but someone told me that principality might be owned by nationwide (my other lender) I could be wrong but if so then there is a good chance they will use the same surveyor and came to the same valuation? Might be interesting if true…

tomstickland

Walk away and come back 12 months later.

lynzpower

JanCee wrote: »

Don't pay for another survey - why should you. Is the developer going to keep asking for valuations until they get the one that they want? On the other hand why shouldn't they whilst you are paying for them. Now is the time to get tough, you have paid for a valuation stick with it, if the developer thinks that they are going to sell to someone else let them try. Leave your valuation offer on the table and wait, but be prepared to walk away if necessary. It is a buyer's market at the moment, for the first time in years - make the most of it and get yourself a good deal.

Oh and if they start offering incentives such as carpets and white goods, tell them that you are expecting them to be thrown in anyway.

I honestly think you need to stop RIGHT now.

HOLD IT RIGHT THERE.

You are getting credit scored again, affecting your own credit worthiness, paying for the privilidge of trying to pay more for a flat than the lender reckons its worth . STOP!!!!

If there are 850 flats on this development and theve barely sold any, come back and see what they want when they are down to the last 50.

They can see you are desperate and are playing you like a violin. Walk away, How many flats are there in Crawley? Loads.

They are just turning your screw, the moneysaver walks away and waits for the desperate phone call from the desperate sales staff to phone up days later to crawl and secure some sort of deal.

They definately need you more than you need them, let them come crawling for it. :rotfl:

natman

I agree, PLEASE Just have a Moment to reflect.
For some reason when we buy houses we get so wraped up and tunnel visioned that it is hard to see the wood for the trees. look £20,000 is a lot of money, I dont know how much you earn, but how long would it take for you to save that as a depoit, a long time i am guessing.

It is a buyers market, please dont pay for another survery, why should you, i understand that this property has made an inpact with you, but get your head thinking and not your heart -
Lets look at the facts -

house prices have dropped and still dropping.
your house has been valued at £20,000 less than asking price.
you have the control here not them.
Its a buyers market.
It would be worth losing your £1000 reservation fee, to save £20,000 in the long term.
The only thing left to say is this - you had good intentions here, you saved for a deposit, and carried out a survey, why on earth carry out a valuation if you are not going to use the evidence to support you with your decisions. Think of it another way -

If you buy your house at £175k and want to sell it in 2 years it may only be worth £145k, how would you feel about that?

I think a few of us here are saying what you should and shouldnt do, I think we actually want to help you, and not hinder you at all.

If the valuation cam back at £175k, you would have not even written on the forum, the reason you have written surely is because you know, deep down the builder is talking rubbish, and to proceed is very dodgey indeed.

Good luck , keep us posted!!

lynzpower

If anyone is any good at maths, they could tell us what an extra 20k on the mortgage over 25 years would actually cost..... even at 5%

ONe for pastures new, shes good at this mathsy stuff

natman

Hey yeah -

Ok - 20,000 over 25 years at 5% would be - about £118 a month
Do this for 25 years and then you have somewhere around £35,000.


OMG - :eek:

I think thats why we are all asking the guy to rethink quick!!!!