House undervalued in survey

TrickyDicky

We are in exactly the same position as you (except valuation came in only about 6% under our offer). We can still afford it, and given that we are pretty sure we're going to be there for 5+ years (assuming we dont need to relocate) and the survey came back with no major and only a few minor issues, we decided to stick to the price to ensure we actually got it, as we know the vendors can afford to stay there if they need to.

Our own survey actually kind of agreed with the mortgage valuation but also didnt. He said that the house was basically on the nicer end of similar houses, so given a shortage of supply and alot of buyers being around, he wasnt surprised with our offer and wouldnt be surprised if values (ie actual sold prices) didnt move upwards again soon.

garyjovial

Lord Blue, yes that is the prooblem- we really like the place, and this is why we offered slightly higher than the rest.
The biggest problem is that it was so hugely under-valued (far lower than any other offer), that we are now stuck how to continue as we do not want to lose the place..

poppysarah

If your valuation comes back low so will everyone elses. If there's a cash buyer who will offer more, then they should take that offer.
Sucks a bit though - but why pay more?

garyjovial

TrickyDicky- Thanks for that, yes it is a tough situation!

So did you guys try and negotiate much or not?

zzzLazyDaisy

Show the seller the valuation and see if you can negotiate a compromise. Possibly meet in the middle. But that depends on you having sufficient cash to make up the difference, because your lender will use the lower vaulation.

farmerboy

Playing devils advocate a bit here, but what is to say that the survey valuation is correct?

Fire_Fox

farmerboy wrote: »

Playing devils advocate a bit here, but what is to say that the survey valuation is correct?

That's why we keep asking about sold prices in the street.

poppysarah

farmerboy wrote: »

Playing devils advocate a bit here, but what is to say that the survey valuation is correct?

What? Should it be lower?

For a buyer a low survey value is good.

Dinah93

Personally I wouldn't pay over a valuation, and the buyer knows they're holding out for someone with enough cash to do so, so I would show them the valuation and let them think on it. 2% is a tiny amount to have got off the asking price in the first place, there may well be a reason it hasn't sold to any of the other people who put in an offer!

zzzLazyDaisy

farmerboy wrote: »

Playing devils advocate a bit here, but what is to say that the survey valuation is correct?

To some extent it is irrelevant because the surveyor is working for the lender. Even if he has undervalued the house, the lender is still going to accept his professional opinion, especially bearing in mind that house prices could still have some way to fall and lenders need to protect their investment. Unless OP is willing to pay another surveyor for a fresh valuation, and then attempt to persuade the lender to accept that valuation instead of the one carried out by their own surveyor - which may, or may not, achieve a better result for OP.