Valuation below Offer Price - HELP!

thewaterboy

I have just had the results back of my Homebuyer Survey and it has valued the property I was about buy at £25,000 less than the offer price – what should I do?

The estate agent put the property on the market at £400,000 and I had an offer accepted at £375,000 and thought I was getting a good deal. The bank’s valuation passed as they valued the property at £370,000 but said if I remedied the damp and cracking it would be worth £375,000. Now the Homebuyer Survey has valued the place at £350,000 and he has cited a large number of defects that need remedied. Whose price is to be believed? I live in central London and the EA tells me the prices have gone up in the last 8 months and the surveyor may be using outdated prices from the Land Registry.

Is it reasonable for me to tell the seller I will only pay £350,000? I am sure he will put in back on the market if I do tho!

Any help/ advice much appreciated….

princeofpounds

It's only a guide and 350/375 is within the margin of error frankly. There is no TRUE price until someone else is prepared to transact with you on that basis.

If it was the bank's valuation then that causes practical difficulties as they won't stump up so much money. As a homebuyer's survey it's just an estimation to help guide you that you aren't overpaying.

At the moments banks tend to be more conservative, so I wouldn't worry too much. If it was worth 375 to you before then I'm not sure this should change anything much.

Don't believe the EA on so-called 'outdated' prices, rising markets or any other explanation. They are likely to have little knowledge and a lot of self-interest.

Cannon_Fodder

Depends on the defects.

While prices generally have moved up in your area, if 1 house is a "money pit", do you want to be the one throwing good money after bad?

I wouldn't focus on the difference in valuations per se.

List the defects, come up with costings to correct, and negotiate down from there.

thewaterboy

Thanks for the advice.

Im going to ring the estate agent tomorrow and tell him that the sellers will need to reduce their price if they want me to proceed based on poor condition of the property as revealed by the report. I will then email him the survey to forward to the sellers.

Depending on what the sellers come back with, I will start gathering quotes for all the works. Nothing is ever simple!