RBS Mortgage Valuation under agreed sale price

paulnstar

Hi

Just adding that we have the same problem, house was advertised at £225k and we had an offer agreed at £212K. (3 bed semi 1930's in Hampshire)

RBS vauled house at £205K based on previous house sales in the area. So we're now 7k short as we only have enough for 90% LTV mortgage + stamp duty and have already borrowed 6K from family.

Other houses on Rightmove are being advertised in same Post code between £215 to £224K and this house has been extended and is in amazing condition. So our heart strings are being pulled too. However house prices according to land reg sold on average for £205k last year.

I've gone back to the Estate Agent and they have contacted our Financial Advisor and are contacting RBS to appeal and are providing evidence of other house prices in the area for recent sales.

We know the seller is buying a vacated house (probate I think) and is very keen to move. I've pressed the Estate agent for feedback from the sellers but he's going down the appeal route first not giving anything away about the lower offer of £205k (£7k less).

So we're waiting too, I expect the appeal to fail and then it will just come down to the seller - do they want to sell quickly but at £7k less? We have the 10% desposit sat in the bank and are ready to move (no house to sell) but like you the valuation did surprise me.

I have considered going through another bank (HSBC) do you think they'd use the same survayer and as they're all RICS certified what are the chances of the valuation being any different???

I'm not sure who the survayer was.

Paul

beecher2

I'd offer 205k and walk away if they don't accept it.

Arthritic_Toe

beecher2 wrote: »

I'd offer 205k and walk away if they don't accept it.

Agreed - reduce your offer to what they've valued it at. Chances are, any other buyer would get a similar valuation. This valuation will probably end up saving you 7k.

happyrichard

If you can't get the house as it is valued at 205k, then chances are most other buyers won't be able to, so just offer that, the seller will see they can't get more and take it...hopefully!

paulnstar

Thanks for your comments, I agree with what you're all saying.

I shall be saying on Monday (we agreed to let the estate agent try to appeal until then). that its £205k take it or leave it.

If they leave it then we carry on saving/looking.

I will update on Monday etc.

Dan_1976

My old broker buddy was telling me this had stopped, he works mainly in Hertfordshire but has clients across a lot of the south and south west.

Just in the last week or so a lot have popped up on here. I think RICS and the powers that be may be trying to slow us down, agents seem to be getting goosebumps and I have heard at least two say prices have gone up?!?!

paulnstar

All

I nearly forgot to update as promised!

House was revalued but the value remained at £205k by the bank which was £7k less than the agreed purchase price.

The sellers agreed to lower the price and we are now in the final stages of completing the sale, we got it for £205k

So the banks have saved us £7k which I'm really happy about.

Cannon_Fodder

Very money-saving ! Well done.

seraphina

Top effort -this thread should be compulsory reading! Getting fed up with people looking to get banks to INCREASE their valuation so they can pay more.

And you've saved not just £7k but also the interest on £7k over the lifetime of your mortgage, that's a huge amount!

beecher2

That's good news

greyster

thanks for posting the outcome, that is great news.