House valued less than offer..

hunnie

Hi,
Could the bank be wrong?
How did they arrive at their valuation?
If it is just a standard mortgage valuation they have been known to just drive by!!!
Anytime I have owned a house that has been valued for mortgage purposes for someone else, the valuer hasn't stayed more than a few minutes.

They sound like they are going by the general drop in prices and perhaps not looking at the property in its own right.

Still leaves you with a short fall though and you would be best to revise your offer with the best you can make given the new mortgage restraints.

Then its up to the sellers.

Regards,
Hunnie

puddy

bargain_hunter25 wrote: »

I have done some more research and these figures are interesting and definately something to go on regarding a new offer price.

Prices of Semi-Detached houses in the area have actually gone down 6k or so since the house was purchased by the current vendor in September 2006 so about 5.4% decline. It was bought for £107500 back then but I know significant improvements have been done since then, e.g central heating, double glazing, new kitchen and bathroom, new oak flooring etc. So based on the price it was bought for in 2006 and the actual decline in Land Registry prices since then it probably is worth what the bank say right now of £125k even with all the improvements.. My brain is working overtime here!:rotfl:

then if you still want the house and want to challenge the EA and the vendor, put in writing that you appreciate that a, b, c has been added to the property and you will consider that this work has added vallue to the property of approx 18k, cite the evidence that you have that prices have gone down 5%, 107k minus the drop of 5% but then add on the 18k and that is what your final offer is.
it might be worth spelling out that all valuers will also be using this information and so its unlikely that other banks or buyers will come to different conclusions

bargain_hunter25

Hi

Ok, a plan of action has now been set in motion. I have put together a justification of the banks £125000 offer based on the fact that the house would be worth just £101000 now compared to when it was bought in 2006 if no improvements had been made therefore it is highly unlikely 24k worth of improvements have been made to the house since then and its more likely the house isnt even worth £125000. I have also added that other mortgage companies will use the same methods of valuation and therefore also value this house at £125000 which will affect other buyers, some of whom may not be in as good postion as us.

I think evidence from Land Registry is the best possible real figures etc.

Many thanks for your help I will keep you posted just in case any of your are curious.

bargain_hunter25

hunnie wrote: »

Hi,
Could the bank be wrong?
How did they arrive at their valuation?
If it is just a standard mortgage valuation they have been known to just drive by!!!
Anytime I have owned a house that has been valued for mortgage purposes for someone else, the valuer hasn't stayed more than a few minutes.

They sound like they are going by the general drop in prices and perhaps not looking at the property in its own right.

Still leaves you with a short fall though and you would be best to revise your offer with the best you can make given the new mortgage restraints.

Then its up to the sellers.

Regards,
Hunnie

Hi there

We were told that the valuer did visit the property but for less than 30 minutes, he noted things about the loft so he must either have gone in or been a good guesser.

bargain_hunter25

Hi

Ok, so here is what happened. The EA rang us this afternoon advising that the vendor will not budge from £135k however they have spoke to the valuer from the bank and they will raise the valuation to £130k to prevent the sale falling though. We said that would be acceptable as we can then get the extra money however the vendor will still not budge from £135k. Therefore, we thought it would be best to let this one go :-(

Thanks for all your help

DesG

Did you put for offer of 130K in writing with a firm deadline for acceptance such as 2 weeks?

Might help them decide it is the best offer they are going to get

On another note, why did the valuer value at 125K and then agree to increase the value by £5K after a phone call from the EA, I'd be having words with whoever is paying his fee.

Cheers, Des.

puddy

has your valuer confirmed that they have increased their valuation? seems strange to me

but based on what you say, i think its unfortunate but correct for you to walk away. never mind, there'll be others

Henry_P_Chester

Well done. Find something more sensibly priced.

seraphina

Sounds dodgy and you're well shot of it - how on earth can an EA convince a surveyor, acting on behalf of YOUR mortgage company to suddenly increase the valuation??? Suspect EA is telling porkies...

Ste_C

The house is worth what YOU are prepared to pay for it.

Ignore all this nonsense about being in negative equity, it's going to be your place to live for many years. Unless you're planning on selling immediately then I wouldn't be that bothered about it, it's a home, not an investment.

That said, you should still be able to drive the price down.