Advice on low valuation on house we are selling

CloudCuckooLand

Are you prepared to lose the place you want?

If yes, hold out for another buyer.
If no, seek a compromise.

Have you had a valuation on the place you want - it might be 'under' too, which would be handy...

Bungly_2

Thanks again for all the replies - great forum :T

The £20k drop is about 7% of the house value. Think we are going to negotiate and see what is the most the buyers will go up to. It would be a pain to lose the place we want to buy - don't really want to start this all over again.

joolley

I'm a buyer in a similar situation. The house I am interested in has been on the market for 11 months. I was ready to offer but got a valuation paid for by me to just get an idea of new value to inform my offer. Came back as about 17% lower than advertised.

The issue is not seller helping buyer. In this market of redcuing house prices, I am not going to pay over the odds. Mind you if I buy there, I will not be moving any time soon, if at all, but the days of paying way over the odds are surely over. Our sellers are lovely. They seem reasonable and really just want the best sale price without being ridiculous. We just want a home without being foolish about dropping prices as reported in the press. I suspect we will meet in the middle. Or I hope so. Aside from our unique situation, I don't think a buyer should pay an inflated price just because a seller has managed to get a valuation favourable to them.

moneysaver

Why should a buyer pay 20k more than the house is worth?.


I have looked at a house last week. The home report(Scotland) was done 6mths ago, valuation at the time was 90k. The house is now unoccupied, not in walk in condition, no white goods, needs new bathroom including tiles.

I have spoke to the vendor who is now looking for 80k, I am thinking of making an offer subject to a new survey. I would think the valuation would have dropped in 6mths, any idea where to start if I put in an offer.


Thanks
Moneysaver

northerner79

The surveyor should provide evidence of comparables they have used in the valuation, alternatively the purchaser may have encouraged the surveyor to put a 'low' valuation on the property as a tool for negotiation.

ninky_2

a house is only worth what someone is willing and able to pay for it. if the buyer is willing but not able because no one is prepared to lend against the house at that rate the house is not worth the amount the seller would like.

yes, they can try other lenders. however, it may be that a second valuation comes back even lower.

some people have been trying to sue valuers for 'over-valuing' property that is now in negative equity. so it's not surprising that valuers are playing cautious. particularly with the economy in the state it is in.

good luck with the sale - i hope all parties end up okay with the outcome.

Blacksheep1979

polyp wrote: »

As our estate agent told us, different mortgage companies use different surveyors, and it is very possible the next surveyor will come in with a different valuation, especially if the agents are forwarned and can use different/better comparables. Plus the next buyer might have the cash to not mind the valuation so much. But yes, it is a gamble. Like everything in house selling. Even getting a good offer doesn't make me leap with joy now...just trepidation.

I'm sure the estate agent would love you to sell for more = more money for them, but they aren't taking quite the same risk are they?

Fire_Fox

northerner79 wrote: »

The surveyor should provide evidence of comparables they have used in the valuation, alternatively the purchaser may have encouraged the surveyor to put a 'low' valuation on the property as a tool for negotiation.

I struggle to believe many surveyors are that unprofessional - I would imagine RICS would be looking to de-register the culprit. Who is more unbiased, a surveyor who is paid regardless of the outcome or an estate agent whose bonus relies on a sale completing? :rolleyes:

polyp

Sure, but my point was only that the valuation is the subjective opinion of one surveyor, and it is quite possible that a second survey will give a higher valuation than the first.

cardsharps

polyp wrote: »

and it is quite possible that a second survey will give a higher valuation than the first.

It's also quite possible that it'll come back with an even lower valuation.