Re-negotiating after survey

Tony_R

Our final offer was £246,000 on a property on the market for £250,000. There was apparently a lot of interest and we were asked for a "best and final" offer which we made.

On Friday we got the results of our Homebuyers report back, which reads pretty badly towards the property, but there are no major structural concerns, but I don't necessarily agree with a lot of it as I took my brother in law who is a builder to the 2nd viewing and he seems to think the surveyor is overexaggerting a number of the issues.

The surveyor values it at £235,000.

The mortgage valuation also took place on Friday, but obviously it is too soon to get that valuation back, or if indeed to mortgage company will tell us what it is worth.

We want to arrange another viewing again with a builder to take a look at the property to look into the issues.

Do we just contact the EA to arrange this, or do we go through the solicitors?
Will the EA be ok with us looking around the property again?

I'm not sure if it will make any difference, but the properly is a trade in, where the current occupiers have bought a new build, and their house is being sold by the builders. Will this make any difference on how open to renogation they will be?

timmyt

yLawyers simply do legal work, the survey remains your responsibility to organise through the Agents.

Th surveyors valuation is irrelevant in that you are prpared to pay £246,000. Problem is if your lenders undervalues it, and this has a knock on to the amount they are willing to lend you as a % of the value. Fingers crossed.

A trade in will not make any difference - it is all down to their circumstances like anyone, in terms of whether they will come down in price.

However, there is nohting makin gyou come down in price at the moment. All surveys are there to highlight what needs doing, afterall, you are not buyig a new build, so there will alwas be something.

G_M

Apparantly the average time buyers spend looking round their prospective purchases is 18 minutes. Most people spend longer checking out a 2nd hand car worth £5000! It never ceases to amaze me.

Anyway - my point is you can ask to look round as many times as you want. Taking a builder is a good idea. Either contact the EA or the current occupiers direct if you have their number and are friendly.

If the issues are serious, you can discuss price later, but surveyers often cover themselves by including every tiny thing.

If the same surveyor did your Homebuyers Report and the mortgage valuation (did you arrange it through the mortgage company?), the valuation will be the same, and this might affect your mortgage.

poppysarah

Don't pay over the "value"
You'll end up going to tesco and paying them 40p more for a loaf next.

tbs624

timmyt wrote: »

The surveyors valuation is irrelevant in that you are prpared to pay £246,000. ..

Buyers offer a price subject to survey and subject to contract, so the surveyor's valuation is not "irrelevant". It's all down to negotiation, how much the buyer wants the property and how much competition there is for it, plus what the vendor views as an acceptable figure.

timmyt wrote: »

A trade in will not make any difference - it is all down to their circumstances like anyone, in terms of whether they will come down in price.

A building company may have a bit more leeway on price reductions than a private seller, or you may be able to negotiate them sorting some of the survey issues.

As for whether EAs are "okay" with you/your builder relative going round again, their job is to effect a successful sale. Don't be fobbed off by them, or worry too much about their thoughts on how often you need to check the property out: any item involving expenditure of almost a quarter of a million deserves checking out thoroughly. If they prove difficult , contact the vendors direct.

Tony_R

G_M wrote: »

If the same surveyor did your Homebuyers Report and the mortgage valuation (did you arrange it through the mortgage company?), the valuation will be the same, and this might affect your mortgage.

The undervaluation is by a Surveyor I appointed myself. The mortgage valuation was carried out on Friday, I do not know how this went.

timmyt

Good luck OP. I am often told how surveyors go into local estate agents to ask them for values in the area! The surveyor's valuation is not relevant, only your lenders, as price is determined by what you are prepared to pay and what your lender is prepared to lend based on their own valuation.

I will never advise my selling clients to pay any attention to a buyers surveyor's valuation, as people are always prepared to pay a 'special' price to get the house they want. A surveyor takes no account of that. And not lost a sale yet....but I do then say, if the surveyor is supported by the Buyers lender, then the seller will have to consider what next. But even a lender who values lower does not imemdiately mean th seller has to drop the price. If the Buyer cannot get enough mortgage due to the lender only being willing to lend a certian % of the sale price, then what other borrowing has the Buyer got?

Milliewilly

You have to remember on this board if a Surveyor values a house lower than the accepted offer then the surveyor is always correct and the buyer is wrong for wanting to pay more even though that is generally less than advertised.

[Deleted User]

Sorry to taking this thread in a slightly different direction, but does anyone know what would happen if the opposite situation occurred: i.e. if the surveyer valued the property at a higher amount than the buyer agreed to pay?

Would the mortgage company require the buyer to satisfy the LTV requirements for the 'value' of the entire property' or just the agreed price?

wodgerdodger

No, Lenders always work on Purchase price or valuation whichever is lower

timmyt

Milliewilly wrote: »

You have to remember on this board if a Surveyor values a house lower than the accepted offer then the surveyor is always correct and the buyer is wrong for wanting to pay more even though that is generally less than advertised.

no idea what point you are making, as even estate agents (including those run by chartered surveyors) vary wildly and ask some estate agents who say the surveyor often comes into them for valuation advice!

the buyer is not wrong to pay more, not in this climate, as no one knows a property's valuation - which is why so many properties are still on rightmove.