135k offered...surveyed at 130k

missey_2

Hi, my house went on market for 135k, lots of viewings and was offered 135k within days. Buyer separating from misses and has 20% deposit. Surveyer priced it at 130k. EA then phones me and said buyers mortgage lender is lending him 5k less...because of survey result. EA said he is unhappy about this and will try and make the surveyer change his mind or me drop my price (EA still believes its worth 135k) or back on market. Is this a normal type of thing to happen?

silvercar

CAn be, tends to happen when people are going for a mortgage of 90-100%. You could say that you not reducing the price and remarket the property.

missey_2

I will do if I need to...but he has 20% deposit and has had a mortgage before so I thought was a safe bet. I asked if mortgage was sorted before survey and EA said yes. I said if buyer was ok to lend x amount then surely he is ok now as price has not changed.

sarah_elton

missey wrote:

I said if buyer was ok to lend x amount then surely he is ok now as price has not changed.

The price you two agreed hasn't changed. The surveyor's 'expert' opinion on what this particular property is worth has said that he's paying too much for it though.

He would have had a mortgage agreed in principle for x. That would still be subject to the house being worth what he was paying, or the bank will be worried they couldn't recover their money if they had to repossess.

missey_2

if I put it back on the market this guy will lose money on top of his separation ...oh well, tough life. What I can do is negotiate a better EA deal:T

AndrewSmith

Bear in mind thought that the 'value' will have been determined by the surveyor visiting local estate agents to get comparable evidence of similar properties that have recently sold, and the price they sold for, not what they are on the market at.

Sold prices will generally give a far more accurate indication of the 'true' value of a property instead of an Estate Agents Market Appraisal. Think about it, an estate agent will gain your business by telling you they can get the top market price for your home and will set the 'selling' price accordingly.

missey_2

fair point...but can an EA pursuade a surveyer to change his/her mind?
Plus point is that house is in Luton and I think prices still on the up (specially 2 bed houses).

Jorgan_2

Its very difficult to get a surveyor to change their mind, they don't like being told they are wrong. A surveyor recently down valued a property £by £8k, that I am involved in the sale of.

The buyer & their broker thought it had been down valued & was asking the surveyor to re-consider, he refused point blankly for two weeks, as far as he was concerned he had valued it correctly, based on the comparables he had. We asked him for the address of all the comparables he used, it turned out they were all two bed mid links, not three bed mod links. Only when we sent him comparables of 5 sales that we had handled as well as 4 sales from another agent would he change his mind.

I think you will be lucky to get the surveyor to change his mind, just because you & the agent think it is worth another £5k. If you can get comparable evidence of sales that have completed on similar properties, that stack up to the value you require, then by all means try & get him to change his mind.

missey_2

thats where the EA is coming from...he`s going to show him some houses they have sold in that area ...the gut feeling I get is that EA thinks surveyer has it wrong.........my situ is im not buying another pad and prices are still creeping up in Luton so no worries for me. feel sorry for other guy tho...but thats business!

regularsaver1

the surveyor is working for the lender - so that they lend the right amount - but this also warns potential buyer that they may be over paying for property

i've heard of lenders taking other surveyor reports - however, this would need to be paid for and seeing as your buyer has already paid for one, can another one be negotiated with you - no g'tees of course

i see plenty of people that say they've had a valuation by an estate agent - so mentally you know a few grand at least of that figure

missey_2

meaning ?

If this guy was putting down 5% or 10% I can understand lender getting twitchy but 20% is fairly healthy by todays standards.

If he has 20% of 135k (27k) the lender risks 108k on house valued at 130k.
If buyer buys...gets into financial trouble...cant pay mortgage...repo...house auctioned...lenders outlay would be reached...surely?

.....or am I fighting my corner with blinkers on???