Advice on low valuation on house we are selling

Milliewilly

Emy1501 wrote: »

If you take say a 150K mortgage at say 5% you are talking about £700 a month in interest payments alone. Its going to be like this for at least the first 5-10 years.

Not saying renting is better than buying just saying that interest on a mortgage is same dead money as renting especially for any period where house prices do not go up.

? £150K over 10 years at 5% accrues £41K interest thats £341 / month for the interest. £1250 for the capital total monthly payment about £1600.

Your intitial comment was that having a mortgage is renting from the bank - its not its an expensive way of buying (your) house.

Estate Agents do have an interest in getting the price right as if they keep 'overvaluing' and no one can buy they don't get paid !

We keep seeing examples where a transaction has been agreed thus you can say the 'market value' has been achieved yet the valuation surveyor is pulling the rug when it comes to the mortgage.

If valuers have to value as distressed sales then the lenders need to change their mortgages from 80% LTV as thats clearly too high.

donkeyman

Forget what anyone 'values' your house at. They are wrong. In fact, ignore the word 'value'.

You are selling something, and someone wants to buy it. You have to agree a price. If your buyer is unable or unwilling to pay a price you are willing to sell at, then that's the end of it.

Don't overcomplicate things.

Emy1501

Milliewilly wrote: »

? £150K over 10 years at 5% accrues £41K interest thats £341 / month for the interest. £1250 for the capital total monthly payment about £1600.

Your intitial comment was that having a mortgage is renting from the bank - its not its an expensive way of buying (your) house.

Estate Agents do have an interest in getting the price right as if they keep 'overvaluing' and no one can buy they don't get paid !

We keep seeing examples where a transaction has been agreed thus you can say the 'market value' has been achieved yet the valuation surveyor is pulling the rug when it comes to the mortgage.

If valuers have to value as distressed sales then the lenders need to change their mortgages from 80% LTV as thats clearly too high.

No I said the interest payments on a mortgage is dead money just like paying rent is. Also lets not forget there are about 5m interest only mortgages and about 30% of mortgages taken out this year were interest only.

As for saying the market value has been reached this is not the case. Just because one person is happy to pay a prices does not mean the rest of the market is. Theres evidence around various forums of people selling properties, buyers pulling out and then the next best prices they received is 10%-15% below. If the buyer has cash they do not need a mortgage or a valuation so no problem. The reality is a bank has to protect their interest

As I say if the seller believes they are being had simply stick it back on the market. If the valuation is fair someone else will buy it. 50,000+ mortgages are being agreed a month so valuations are being agreed.

Let me give an example. Back in 2005 I sold 2 properties. One was on for while and took a while to sell. It got down valued not by alot but enough. I agreed the figure because I could not be convinced I would get any more for it. The other one sold in a week and never got down valued. If it had been I would have told the buyer to whistle as I know I could have sold the property 5 times over.

Also you seem to be forgeting that surveyors are independent and are therefore giving an independent valuation. I supsect yes they are being conservative as they do not want to be sued but thats not the banks fault.