House valuation under offer

TrickyDicky

W've just had our valuation report (used for the mortgage) come back 16k under our offer price. We love this house, but with the valuation as it is I think it just pushes us over what we can afford. Im a bit frustrated because houses have sold in the past for 10-20k more than we're offering.

Is it common at the moment for houses to be valued conservatively?
Where do we move from here? Should we negotiate?

poppysarah

Offer to pay them the valuation price?

Pay less. be happy.

Fire_Fox

Yes it is common, if you read around the board you will see it comes up every couple of days.

Gwhiz

[QUOTE=TrickyDicky;26768577Is_it_common_at_the_moment_for_houses_to_be_valued_conservatively?[/QUOTE]
Have you read any of the threads on here? Common as muck.

[QUOTE=TrickyDicky;26768577Where_do_we_move_from_here?_Should_we_negotiate?[/QUOTE]
No, just give them £1m and move in! Removing the sarcasm, what else would you do?

TrickyDicky

Is it worth going direct to the vendors with the valuation? or should we keep that value hidden? We have a good rapport with the Vendors.

Cidersid

There seems to be a couple of these threads a week now??

Part of me says you've paid someone to give your their professional advice on the price of a house and now your disagreeing with them??

The other half thinks i wonder if you had a large deposit then the valuation would be spot on??

By the way i'm selling £20 notes for £22 each!! DONT PAY MORE THAN ITS WORTH!!

Milliewilly

All these threads are showing that if the Valuer is to be believed is that Estate Agents cannot value a property and comparable sold prices count for diddly squat.

I cannot believe the amount of threads coming up on here that the undervaluations for mortgage are all due to Sellers insisting on a higher advertising price as the threads invariably start will the buyer having offered under the advertised price anyway.

The banks are cushioning themselves against a potential fall in house prices over the next couple of years.

All thats happening is a stalemate for the buyer and seller where they cannot meet on price. The only winner is the Bank as they don't then have to give the Mortgage.

Out of interest whats your LTV?

bmunky7

You can decide if you are willing to (and can) pay more than the house was valued at. If so decide on an absolute limit then I'd go direct to the vendor and tell them the situation and make an offer to meet somewhere in the middle, working up to your max.
You can also appeal the valuation if the estate agent can supply comparables of other properties which sold for above the valuation.
Depending on the sellers situation they may be able to and willing to drop the price to keep the chain (if there is one) in place.

bmunky7

Milliewilly wrote: »

All thats happening is a stalemate for the buyer and seller where they cannot meet on price. The only winner is the Bank as they don't then have to give the Mortgage.

This is partly true however banks are in the business of lending money so long as the risks are acceptable, even in these difficult times. If banks just sit on all their money and never lend it they won't be in business very long.

TrickyDicky

Milliewilly wrote: »

Out of interest whats your LTV?

If the valuation had come close to our offer we would have had 85% LTV. But now this pushes us to 90% (it was always a 90% mortgage)

Milliewilly

Whats the value of the house - is £16K another large chunk?