New Build Valuation Lower than asking Price!

JonathanA

Can I get this right? You're looking to buy a 2 bed flat, for you, your wife and your 2 children? How long do you plan to live there? I ask because there will come a point where your (now very young) kids won't want to share a bedroom, and you may well think about moving up. If that is the case, will you be able to sell, will the market still be bumping along the bottom & will the scheme you are on be flexible enough to do that?

I'm guessing you're renting right now, and you may be better to continue to rent in the short to medium term, save as much money as you can, and buy something in a couple of years when you have a larger deposit.

The other reason to delay purchase is that with mortgage rates very low at present, if they increase, could you afford higher repayments?

If I were in your position now, I'd think it through very carefully. I know that there is a feeling of 'your own home', bust sometimes, renting may be the better option (no maintenance costs etc - and believe me, even new build have those!).

JonathanJ

Hi plp76
I flat out refused to give them the money unless they guaranteed it was fully refundable, of course the sales lady assured me it was. Upon filling out the receipt I noticed it said in big black letters “NON REFUNDABLE” so I asked her other than what she has said, what assurance have we got that I can get this money back if I don’t get the mortgage to which she replied “you have my word” after quite poorly covering up a snigger with a cough I said she could at least clearly cross out the big “non refundable” on both mine and there copy of the receipt. She was VERY reluctant but gave in when I stood my ground.

Unfortunately unless you did something along the same lines I’m not sure I can be of much help, sorry.

Jonathan

plp76

Hi JonathanJ

That sounds like exactly what we were told, and we heard the sales people tell other potential customers who were in the sales office.

I've written a few letters and emails to Fairview Homes and finally received an email yesterday advising that the refund was being processed and we would receive a cheque next week. Good news, just a shame they had to dispute what we had blatently been told on many occassions.

Cheers

JonathanJ

HA! I wouldn’t count on it in a week!
I was told I would have it within a week but it took them two months to get the cheque to me! I called them every week and they tried all sorts of things to palm me off, from hanging up on me all the way to claiming it must have got lost in the post!
In the end I called and said I have waited long enough and if I don’t receive it within 48 hours I would start proceedings with the small claims court and would also contact the local papers and let them know what Fairview are like to deal with! I enjoyed a little chuckle when it arrived by special delivery the very next morning!
On that note I would like to point out that it is quite amazing how companies in general can rapidly become more helpful when you threaten them with talking to the papers, nothing like the idea of bad press to motivate them!

Jonathan

54druids

You should really read all my posts regarding the variations in valuations and then see if you think the same. Valuation is all open to interpretation. It all depends who makes the decision on that valuation. When selling a house in England you may get 3 ES in to value and choose which one you fancy. With a surveyor you think they are GOD well they are not. They vary also. As for never offer higher than the valuation well if like me you unfortunately picked the wrong surveyor then you are knackered. My advice would be - a house is worth what you want to pay for it, if you like it and you can afford it then buy it and do a deal for the interior spec.

guppy

54druids wrote: »

My advice would be - a house is worth what you want to pay for it, if you like it and you can afford it then buy it and do a deal for the interior spec.

Unfortunately banks don't agree a house is worth what the mortgagee wants to pay for it - that's why they insist on a surveyor's valuation Admittedly in the boom - things were very lax but times have changed.

54druids

well in scotland a surveyor can vary by about 30k and as for the bank - well... it depends if the surveyor are on their panel as to wether or not they accept their valuation