mortgage valuation

ameliawilliams

can you question a mortgage valuation that is too low? what can i do to buy the house?

Wutang_2

ameliawilliams wrote: »

can you question a mortgage valuation that is too low? what can i do to buy the house?

yes you can,

and what house?

figgles

Happened to me on a new build a few months ago, ended up with me getting the house for a lot less than was originally agreed. I actually paid more than the valuation because I knew it was far too low, but I was lucky and wasnt relying on a high % mortgage.

Give a bit more detail, rough figures and how it affects your lending, etc. Could be that it's not really an issue, could be that you need to re-negotiate with someone.

Conrad

Of course you can challenge it, with documentary evidence to include comparible property that has sold.
In my long experience valuer's don't usualy get it wrong, and will always have consulted local agents.

I'm assuming this is a standard lender and not a sub prime lender, as they have stricter valuation criteria as there is a higher chance of repossession.

Little_Yellow_Dog

In order to dispute a mortgage valuation you will need to provide evidence to back up your reasons for thinking the property is worth more. Evidence consists of comparables of other similar properties in your area that have been sold. The difficulty in this market is that there are a shortage of properties being sold. It is a law of economics that where supply outstrips demand, prices will drop - thus many people are found in a position of negative equity.
However, your best option is to go back to the seller and say that it has been valued at X and therefore you are only prepared to pay that for it! If the seller really wants to sell, they need to accept the lower valuation.
Go for it, its a buyers market at the moment! Good luck

ameliawilliams

the house was on the market origionally for £189,000. I agreed a price of £175,000. it is a 3 bedroom new build with garden and garage. I was origionally told a 15% deposit would sufice and signed etc and was then told because it was a new build i needed a minimum of 20%. I managed to find another £10,000 so meeting the deposit required. The valuation was taken out and was valued at £160,000 which is ridiculous. the 2 houses next door have been sold recently for £175,000 and £180,000 respectively. I just feel that the bank want even more money out of me.

Im tempted to cut my losses, pay the fee to the bank and start again. but i just know this house is worth more.

i know that the lender wont budge aswell, i offered 165, 170, 171, 172, 173 etc until he eventually agreed at 175.

TonyMMM

Go back and offer £160,000 and show the builder the valuation you have - tell them you can't proceed at anything above that price. Any other buyer they can find is likley to have the same problem, so if they have any sense they will accept your offer.

Be prepared to sweat it out for a couple of days while they think about it , and be ready to walk away if they refuse.