Valuation less than asking price

tinalpool

timmyt wrote: »

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.

It obviously does carry wait as both people on this thread have negociated money off!!

It's not like the lender won't lend as much because we can't afford it, they won't lend it coz it is not worth what the seller/EA say it is!

In our case the house isn't worth it because we will have to fix a few things, for example some dodgy wiring, rotten timber, a falling down wall and the fact that they are using the outbuilding as a dog kennels.

SimonMrGreenWard

Valuation does carry weight. Go back to EA and ask if they'll reduce price in accordance with valuation. Send them the report. If agent asks if you can still proceed, say you're very cautious of overpaying and wish to discuss with your partner/parents or something.

Give them the chance to reduce price. Tell agent that your decision will be based on what vendor decides.

Good luck.

tripod2000

We're in this situation. The value of the £275k house has come in at £250k. The seller has said that they will drop £5k but that's still £20k.

I don't know what we can do on a house buying process that has gone on 6 months now. (messed about by Santander and now this)

SimonMrGreenWard

tripod2000 wrote: »

We're in this situation. The value of the £275k house has come in at £250k. The seller has said that they will drop £5k but that's still £20k.

I don't know what we can do on a house buying process that has gone on 6 months now. (messed about by Santander and now this)

Be patient. Would you really want to overpay by £20k? If they won't budge on price, walk away.

tinalpool

tripod2000 wrote: »

We're in this situation. The value of the £275k house has come in at £250k. The seller has said that they will drop £5k but that's still £20k.

I don't know what we can do on a house buying process that has gone on 6 months now. (messed about by Santander and now this)

I guess the bigger issue for you on this is the stamp duty at £250k.
You could say you will pay more so long as they pay your extra stamp duty costs.

skintchick

Yes the valuations do hold weight, because any buyer will be told the same thing so the vendor has to decide how low they want to go. And if you don;t ask, you don;t get.

As for if they won;t go down that far, you have to decide how much you are prepared to pay for a house, assuming you cna still get the mortgage (we could have done but didn;t want to lose that much money).

tinalpool

Another update for everyone. After all that hassel of re-negociating our buyers first time buyer has pulled out on the day we meant to exchange. His reasons being he was sick of waiting and had found somewhere else. Although I don't think he realises that he's now going to have to wait weeks/months to move when we would have been moving a week today!!!! Ahhhhhh

TBeckett100

sorry to hijack.

we have sold and awaiting the survey. we paid 190k back in April 08. We spent a lot of money on damp works, new wood flooring, multifuel stove and linked radiators upstairs and down, recvered the roof etc. We went to remortgage in April and put down it was worth 200k and the valuer agreed.

We accepted an offer of 192 from someone, however their chain was incomplete (didnt realise) and we went back to market. I switched agent and dropped price to 187500. The day after the original person was proceedable and offered 187 which we accepted.

If the survey came back and said some work had to be done £3k or somthing, in that situation, would i be right to say no further reduction as on paper it is a 200k property and the buyer has just renegotiated at 5k less!

Cannon_Fodder

TBeckett100 wrote: »

sorry to hijack.

we have sold and awaiting the survey. we paid 190k back in April 08. We spent a lot of money on damp works, new wood flooring, multifuel stove and linked radiators upstairs and down, recvered the roof etc. We went to remortgage in April and put down it was worth 200k and the valuer agreed.

We accepted an offer of 192 from someone, however their chain was incomplete (didnt realise) and we went back to market. I switched agent and dropped price to 187500. The day after the original person was proceedable and offered 187 which we accepted.

If the survey came back and said some work had to be done £3k or somthing, in that situation, would i be right to say no further reduction as on paper it is a 200k property and the buyer has just renegotiated at 5k less!

Valuations can easily be 5% out. £200k is not a figure you can set in stone. Recent sales, since April, could be more or less, it depends on the market in your area.

If you thought £200k was a firm figure, why accept £192k?

You chose to drop from £192k to £187,500. The buyer has only got £500 off, as far as they know.

As one half of the deal, you can agree to whatever is proposed after the survey, or 'walk away'. Its up to you.

Whether in time you would find another £192k buyer (to then potentially be knocked down by £3k after survey), or have to drop to £182k (to then potentially be knocked down £3k after survey), only time would tell.

Bottom line, on paper doesn't matter. Its the ability of someone to fund their offer.

Vincenzo

Just a note of caution for vendors, before you renegotiate always ask for a copy of the mortgage valuation and check the section that states the price reported by the buyer (to ensure it is actually the agreed sale price) as well as the Surveyor's opinion of value.