Valuation Help

nikfoster09

Hi,

Hope someone can help or shead some light on my situation.

My partner and I are currently trying to buy a new build Barratts house under the governments Homebuy Direct Scheme. We have found the house we like and via a Financial Advisor submitted our applicaiton to RBS. So far everything has gone well, we have been approved by My 4 Walls (the government lenders ) and we have been approved by RBS.

Earlier this week we paid £275 for the valuation. The valuer has gone back to RBS with their findings and stated that they beleive the house to be worth £30,000 less than the asking price !!!!

Apparently the valuer, while at the plot with the Barratts sales lady, advised her that he does not approve/agree with this scheme.

My quesition is..... has any one else had this problem, if so was it resolved or not and what are our options from here ?

Hope someone out there can help.

Thanks

Cannon_Fodder

New builds are often being valued below what the developers are asking.

Ask Barratts to price according to the valuation. Don't believe a word the sales reps say, they try anything to get you sympathetic to them.

Bottom line, you will be in immediate negative equity from day one, and if you need to sell - job loss, relationship breakup, who knows what else? - you will be unable to trade to a similar property without finding more funds yourself.

RBS may have instructed their valuers to be cautious, bearing in mind the amount of your tax RBS have had, I would hope so...but £30k is going to be difficult to adjust by another Lender revaluing (if there are any for that scheme).

nikfoster09

Thanks. I think RBS have asked Barratts to show/ prove comparitable sales prices. If they can't then we will all be asking them to reduce the asking price. If Barratts do reduce the price does anyone know if we have to go through the whole application process again or will RBS just amend the lending figure to the already approved mortgage ?

anxious_first_time_buyer

Hi... I have also got a similar situation here. I am buying a new build 2 bedroom terraced house with Barratts, got the valuation report today and it's undervalue of £20,000 (purchase price £150,000 but worth only £130,000)

I guess with all the new-built houses and this economic situation nowadays, valuation does tend to be lower than the purchase price.

I am still in the bargaining position with Barratts and the sales lady said she will get back to me with a decision on Mon.

Does anyone in this forum know if Barratts will reduce the purchase price because of this? Thanks...

Cannon_Fodder

Yes, there have been several threads where people have expressed their joy...

nikfoster09

anxious_first_time_buyer wrote: »

Hi... I have also got a similar situation here. I am buying a new build 2 bedroom terraced house with Barratts, got the valuation report today and it's undervalue of £20,000 (purchase price £150,000 but worth only £130,000)

I guess with all the new-built houses and this economic situation nowadays, valuation does tend to be lower than the purchase price.

I am still in the bargaining position with Barratts and the sales lady said she will get back to me with a decision on Mon.

Does anyone in this forum know if Barratts will reduce the purchase price because of this? Thanks...

Hi, could you let me know what your outcome is and how it was resolved. Barratts have so far told us that they are going to contest the valuation and try to change the valuers mind !!! Obviously if that does not work we will start to try and lower the initial sale price, although it's a BIG gap. Will also let you know how we get on..... Good luck

anxious_first_time_buyer

nikfoster09 wrote: »

Thanks. I think RBS have asked Barratts to show/ prove comparitable sales prices. If they can't then we will all be asking them to reduce the asking price. If Barratts do reduce the price does anyone know if we have to go through the whole application process again or will RBS just amend the lending figure to the already approved mortgage ?

Hi there, just got an update from my broker today saying that Barratts have sent them some irrelevant information regarding to the valuation contest.

Barratts have sent them the price of 2 exchange properties and 2 reserved properties which my broker said are not acceptable.

The 3 properties must be in similar and have been SOLD in recent months not exchanged or reserved. I doubt Barratts can provide that coz it's a new building site (especially not many houses are sold in this recent months) and the house type we are buying is just a few within the development.

At this point, I have absolutely no idea will Barratts reduce their price. If you have any update, please let me know as well. Good Luck....

nikfoster09

No news from my end yet. It's with the complaints department at rbs and they have 10 working days to decide if they will send a different valuer out. To be honest I'm not holding much hope at the moment, the problem we have us that if they come back and say no, most of the other developers in the area are selling the same size houses for £5,000 - £15,000 more.

Trollfever

From The Financial Ombudsman Service:

a selection of recent mortgage case studies involving disputes over valuations


http://www.financial-ombudsman.org.uk/publications/ombudsman-news/81/81-valuation-disputes.htm




.

Cannon_Fodder

nikfoster09 wrote: »

...the problem we have us that if they come back and say no, most of the other developers in the area are selling the same size houses for £5,000 - £15,000 more.

"most are selling the same.." sounds like you are looking at advertised prices. Don't panic. Look at real, sold prices. They could be significantly different.

vickylane888

nikfoster09 wrote: »

No news from my end yet. It's with the complaints department at rbs and they have 10 working days to decide if they will send a different valuer out. To be honest I'm not holding much hope at the moment, the problem we have us that if they come back and say no, most of the other developers in the area are selling the same size houses for £5,000 - £15,000 more.

We are in exactly the same position as you were in a few months ago, how was this resolved for you? Did you lose the valuation fee?

Thanks