Persimmon over-valued newbuild

tb1105

We are going through Homebuy scheme with Persimmon.
They lost their first buyers due to problems getting a mortgage. Re-advertised and 3 days later we were proceeding with mortgage applications etc.,

They know we have the mortgage lined up and are keen. House advertised at £189,000. Sales advisor said lowest she can sell at was £180,000.
We agreed on paying £187,500 (gave us access to better interest rates due to % of loan vs mortgage on Homebuy scheme) with £5,000 finishing touches (carpets, laminate, upgraded shower, fridge etc.,)

Surveyor's report in today, valued at £180,000.
Persimmon appealling saying it is based on 2 similar properties sold in April and they believe prices ave risen and it is correctly valued. They said if they lose the appeal they could sell it for £180,000 but we would lose our £5k extras.

We need that £5k in order to get the house carpetted etc., as our savings are going on deposit, fees, furniture etc.,
My parents are saying stand strong - it's not our fault they over priced the property and to say £180,000 AND £5k extras as agreed or walk away but we really want the house and I'm worried they won't give in!! House due to be completed end of March xxx

silvercar

I agree with your parents. If the last buyer pulled out, they won't risk losing you for the same reason.

pinkshoes

£7500 saving or £5000 of goodies?? It's a no brainer! I'd accept the lower price!

Their £5000 of extras won't be anywhere near that value.

tb1105

they lost the last buyers because she had numerous jobs and couldn't prove her hours, we have our mortgage lined up but the house has been valued lower than they are asking, but surely they will have this prob with the next buyers if they lose us?? xx

tb1105

pinkshoes wrote: »

Their £5000 of extras won't be anywhere near that value.

thanks pinkshoes. This is based on their pricelist.

To carpet the rooms, laminate the hall and dining room and vinyl in the kitchen and bathroom came in at £2,300.
To turf the garden was £300 - 400.

A friend who is a builder said it was a good price and it will also be done for when we move in?

jenny_13

tb1105 wrote: »

they lost the last buyers because she had numerous jobs and couldn't prove her hours, we have our mortgage lined up but the house has been valued lower than they are asking, but surely they will have this prob with the next buyers if they lose us?? xx

Are you sure that's the truth and it wasn't because they couldn't get a mortgage due to the valuation?

terrierlady

hold it steady, dont cave in they will .they need your sale keep your nerve tell the sales neg you are prepared to walk away.

tb1105

I can't be 100% sure but the house is half built, only came up a week before christmas, we enquired immediately and sales lady said the last couple couldn't get a mortgage so not sure, sh could have been lying I suppose but that means if it is true, they either owuldn't budge on price for the last buyer's or wouldn't agree to their requests.

There is an identical 3 bed right next to us though so I don't really understand! We are terraced, they are end of terrace but both at the same stage of building and both through homebuy... wonder if theirs was under valued too??

tb1105

terrierlady wrote: »

hold it steady, dont cave in they will .they need your sale keep your nerve tell the sales neg you are prepared to walk away.

thanks, she knows we can walk away, we live with husband's parents so we are only saving more by staying put where we are (we can't stay put due to living arrangements but she doesn't know that!!)

They are also moving onto their next part of development on the other part of the site once this batch of houses are sold and Bloor homes are also building on site, so we can always buy in the sept/oct completions, so from Persimmon's point of view, we can and will walk away.

But we love this house and are so ready to move!!

mark5

A new build being valued at less than the asking price is only a problem when there is a small deposit involved. Maybe the next buyer would have a larger deposit to put down so the lower valuation would not be so much of a problem.

I go with what your parents say though, ask for the extras at £180,000 you can always back down later if you dont get anywhere. Its still a buyers market!

New builds are always sold at optimistic prices, i bought one myself for £216,000 when it was probably worth closer to £200,000 but my wife fell in love with the house and she wouldnt settle for anything else.

Goodluck,
mark

**Upsy_Daisy**

New build or the plague - I'd pick the plague anyday

Walk away now - don't even bother bargaining - no price is too low when it comes to newbuild