Udervalued Property

mickyp110472

We are selling our home & have a sale agreed at our asking price of £75k. We are selling privately so arranged a valuation prior to deciding our asking price. Our prospective buyer has agreed to pay the £75k but the survey requested by her bank has returned a figure of only £63k...!Our buyer is still happy to pay the £75k originally agreed & is only needing to borrow £23k from her bank, is there anything stopping her from proceeding & paying the £75k providing her bank will still lend her the £23k...Alternatively is there anything we can do with respect to apealling against the £63k valuation.?

poppysarah

You could ask for another.
I do think your buyer is mad to be paying more than the valuation though.

There's plenty of news saying prices are due for a fall though ... but if they are the one taking the bulk of the risk then the bank will probably be ok about letting them.

mickyp110472

thanks, i totally agree with the mad part but who am I to argue, the ball is in the buyers court so to speak.

poppysarah

Can you get a mortgage for less than £25k? Didn't think you could... but then I thought the fsa banned self cert mortgages when the credit crunch hit.

Idiophreak

As is always said, the value of a property is what someone's willing to pay for it, so not sure "mad" is the word I'd use - and there have been plenty of news stories surrounding aggressive downvaluations in the last couple of years, anyway.

I don't think this should cause any problems going forward, though - the bank isn't risking a whole lot.

mickyp110472

£23k is what she currently owes on her current lending which is effectively being transferred to our property.

delmar39

If buyer has the funds to proceed at £75k regardless of valuation figure and mortgage company, then that's that isn't it? Mortgage company just needs to make sure it'll get its money back if house needs to be repo'd. Will the mortgage company still lend if offer price / valuation price are different? I don't know. I guess this brings me back to first sentence.

Idiophreak

delmar39 wrote: »

If buyer has the funds to proceed at £75k regardless of valuation figure and mortgage company, then that's that isn't it?

Pretty much. We were downvalued 10k by the lender, so we raised 10k and everyone was happy.