Valuation less than asking price

tinalpool

Hi everyone

We are in the process of buying a 4 bed semi for £249,995. Our valuation has only come back at £240,000. There doesn't appear to be any major work that needs to be done so it seems like it will be hard to re-negociate the price. My question is should we allow/are we allowed to let the EA/Sellers see the valuation/survey? Do we go straight in saying we want 10k off, or do we try and agree to meet somewhere in the middle. The bank won't now borrow us the full amount, but we can still afford it.

Thanks

Cannon_Fodder

Start off low. You can always go up.

Find some comparable recent sales to back up your argument.

poppysarah

Pay the difference ... But you're paying more than the valuation says so you stand to instant lose that 10k.

Negotiate.

Jowo_2

Call their bluff 10k off or you'll walk. Don't let them know you can pay the difference. Tell them you'll pay what it's been valued and not a penny more. Remind the EA that if you pull out and the next buyers have a survey, the self same thing will happen. Cite some recent actual sales prices to back up your argument. Point out some properties currently on sale at a similar or slightly higher rate which would be open to offers so you could buy them for less than this property.

brit1234

Don't over pay, stick with the valuation. We have had 3 months in a row of price falls as of today, you risk losing more equity if you go with the asking price.

tinalpool

Cannon_Fodder wrote: »

Start off low. You can always go up.

Find some comparable recent sales to back up your argument.

There doesn't seem to be that many houses that compare with it. Had a look on some of the websites that show you what houses sold for but most of them sold years ago. The street we want to move to doesn't have many houses on and they are all terraced. It is also right next to the station.

skintchick

I have found out today we are in the same situation. We ended up agreeing to pay 335k for a house we saw before it went on open market (hasn;t been marketed) but valuation came back tosay at 320k.

It's especially annoying as we took 25k less for ours as our buyers had to take 45k less for thier so passed some of that on. We only agreed to take that as we found this house and thought we could get everything sorted and move at long last.

As we are sellign and buying with same EA, I have called and told him to try to get more money for ours and/or money off the one we are buying, as we are not prepared to lose 40k (25k off ours plus 15k overpaying on other housE).

No idea what will happen but something will have to give as otherwise we will have to walk away from it. We are lucky in that we can still get the mortgage even if we overpay for the house because of our LTV ratio, but we are not prepared to overpay as well as lose money on our sale.

It's a really annoying situation to be in, as money has already been paid out on surveys and searches by this point. I really do hate this system.

whitesatin

Looking at this from the other side of the fence, we accepted an offer much less than what we feel we could get if we hung on a bit. They said they want to move quickly, we can do that as we are not buying just yet. Anyway, the survey takes place soon and we are adamant that we will not reduce the price by a penny even if it is valued at less than they agreed to pay. We had most of the work done that came up in our survey 7 years ago and won't be making a profit at all if we sell at this price. Not too worried about that, times have changed, but we will not drop the price again, that's a certainty. I know we will lose out a bit with solicitor's fees etc. but that's just how its going to be.

tinalpool

Just an update...we have both agreed to split the difference so 5k each. We are happy with our decision but obviously when we move we will have to spend out more to fix things that came up in the survey. Should move by the 27th, so all good in the end I guess!

Christina

skintchick

Update from me too: our vendor dropped to the valuation price! So we are very happy Goes to show you should always ask and see.

timmyt

tinalpool wrote: »

Hi everyone

We are in the process of buying a 4 bed semi for £249,995. Our valuation has only come back at £240,000. There doesn't appear to be any major work that needs to be done so it seems like it will be hard to re-negociate the price. My question is should we allow/are we allowed to let the EA/Sellers see the valuation/survey? Do we go straight in saying we want 10k off, or do we try and agree to meet somewhere in the middle. The bank won't now borrow us the full amount, but we can still afford it.

Thanks

the agent will laugh at you. the valuation carries no weight. why wuld it.

if your lender won't lend you as much as a result and so you cannot afford it, then there might be pity shown to you depending how desparate the seller is, but otherwise, there is no one out there who knows the price of houses, valuations are just opinions. it revolves around what people will pay, and you were happy to pay.

go to the seller at your risk.