Mortgage company valuation - Too low!

SouthCoast

get on to right move NOW and search the area for similar properties BUT you must make sure you tick the box sold properties and SSTC.

Property Bee tells me that a large number of SSTC properties in my area fall through.

CloudCuckooLand

How keen is your vendor to move?

If they are keen enough, with good negotiation you might get it for very close to the valuation - which saves you paying interest on that extra £20k for 25 years.

I hope you buy the surveyor a pint for getting £10k off, with almost no effort.

Sarah_83

Sorry for the delay in replying, but thank you very much for all your responses. We have decided to scramble together as much money as possible (which probably won't be the full £10k) to try and make up the 'deficit' and hopefully negotiate a price. It's good to know we're not the only people who this has happened to - and as I understand it, it's happening more and more in the current climate - but fingers crossed we will find a compromise in there somewhere...

Thanks again.

TrickyDicky

Our first house came in at £16k under our offer. In the end, after £1k of survey, valuation and solicitor fees the vendors pulled out (problems with their purchase)

Since then we have found another house for a similar offer and the same valuers have valued it at our offer. Looking back at the first house we are now a little releived we didnt buy it.

Theres probably a reason they valued it low!

Dan_1976

Some very strange replies on this one. Has anybody thought that RICS and the lenders are being cautious and are trying to ensure we get back on track slowly. Our economy was and is still based on inflated house prices, Mr Brown and co found out that this is not the way to do it.

The FSA warned lenders and RICS and asked them to base lending on a 40% drop in proces. Let be grateful that generally this has not been the case.

de1amo

i find it amusing that these are the same professionals that inflated the prices and now they are conspiring to make deflation the flavour of the day--with such activities i cant see much mileage in the current prices 'holding' let alone going up!!

Dan_1976

Very true De1amo, but then again they fell in to the same trap. They also found that lenders were happy, and money talks!

Squish_21

CloudCuckooLand wrote: »

How keen is your vendor to move?

If they are keen enough, with good negotiation you might get it for very close to the valuation - which saves you paying interest on that extra £20k for 25 years.

I hope you buy the surveyor a pint for getting £10k off, with almost no effort.

Good idea - Defo worth a try. Vendor sounds keen.

Gorgeous_George

In the end there are five parties involved in agreeing the price - sellers, buyers, lenders, valuer 1 and valuer 2 (I prefer to call them guessers but we'll pretend that their title is based on some qualifications).

seller - wants a little more than similar houses have sold for. May well have a bottom line that they will not share with you.

buyer - wants to pay a little less than the buyer's asking price. May well have no idea what the house is worth.

lender - after years of not caring now wants to minimise house value (and their loan) as a lazy form of risk management (which they do not understand)

valuer 1 - usually an Estate Agent who wants to market the property. Likes to push the limits of house prices to ensure the business comes to them and their fees are usually based on sale price.

valuer 2 - usually a surveyor employed by the lender at the buyer's expense. Ensures house is structually suitable for securing a mortgage. Guesses the price and takes a bit off when the market is falling or adds a bit on when the market is rising. A trained monkey to do the guessing.

GG

de1amo

Each one has their affect on the market but if the valuer 'bottoms' the price then 'good' deals like the thread collapse because the banks will not loan the required funds-i always think my house is only worth what 'someone''professional' values it at--this someone is the most vital cog and can tumble all the LTVs regardless of 'real worth' in a already depressed market.--i always connect value to the rentable rate in my warped way of looking at things!!