Potential salability problem with house

mattastic

Hi,

I have recently agreed a price of 112,500 on a house which is a big 3 bed terraced, in a mainly suburban road.

However, having recently had a survey done, the surveyor highlighted we might have a problem selling the house as there is a little mot garage next door.

The house was for sale at 125,000 and the survey valued the house at 106,000. Does this set alarm bells ringing?

The problem I have is I dont want to spend a load of money on it updating it, when it might get wiped out by the fact we have to lower the price so much to sell it.

Im buying the house with my brother so we want to stay there for a couple of years at least.

Do you think the garage is a major problem? it didn't bother us obviously.

Any advice would be much appreciated.

Thankyou

Astaroth

At the end of the day you have been happy to accept the garage next door and so will others. It will almost certainly reduce the sale price of the property but then you have almost certainly got it for a knocked down price because of the garage too.

MortgageMamma

from an advisors perspective a lot depends on the individual surveyors/lenders attitude to that sort of thing. some lenders will not lend on properties which are next to commercial premises and some can just be plain awkward about it. I wouldnt worry yourself too much its only a garage not a brothel, but bear in mind the noise factor during the day.

I agree with Ast in the fact that you will have bought it for a reduced price due to the garage next door so selling will also be in line with this. Hey, look on the bright side, at least the garage was there before you bought and not built afterwards!

MM

mattastic

Personally it doesn't bother us in the slightest, its the salability point thats causing me a problem, I would hate to have to sell the house for less than we paid for it.

silvercar

your paying a price that allows for the garage; so will your future buyer.

Jorgan_2

Agree with whats been said already, the property has been valued with the MOT garage in place. Was the property on the market for long before you offered on it?

mjfusent

Agreed with all the other posters however the fact that the survey downvalued the property would set alarm bells ringing for me. For a start that's the amount a lender will advance on, not your agreed purchase price, basically the surveyor thinks the house is worth less than you're paying for it.

Good luck whatever you decide.

hollydays

I think i would want to know how long the garage had been there,to try to establish if the level of trade was likely to stay the same.

robwend

mjfusent wrote:

Agreed with all the other posters however the fact that the survey downvalued the property would set alarm bells ringing for me. For a start that's the amount a lender will advance on, not your agreed purchase price, basically the surveyor thinks the house is worth less than you're paying for it.

Good luck whatever you decide.

yes i agree with this, and hes right about the baNK you need to discuss this with seller and agree the price of£106000

MortgageMamma

bear in mind opinion varies from one surveyor to another, and different lenders have different takes on such things. i.e. abbey for example are terrible for downvaluing in my opinion, as are bank of scotland, but they are just my personal experiences being in the profession

noyk

MortgageMamma wrote:

bear in mind opinion varies from one surveyor to another, and different lenders have different takes on such things. i.e. abbey for example are terrible for downvaluing in my opinion, as are bank of scotland, but they are just my personal experiences being in the profession

Now i know you may have used the wrong word or something, but why on earth is down valuing a property "terrible"? Surely it's a great thing for a buyer, they now have a better negotiating position and so will likely be able to pay less for the property. If you were buying a car this would be a good thing right? Ah, i see your signature, your income is based on advising people to pay more!

More on topic, in my personal opinion you shouldn't pay more than what the suveyor values without knowing a lot more about what may happen to the garage in the future.