need some advice...

fatblokexl

we have made an offer of £145k on a property (really nice one for us and just what we want), the offer was accepted (subject to survey).
the thing is the valuation survey for mortgage purposes has come back at
£10k below the initial offers over asking price £120k(scottish transaction).

this has meant we cant get the mortgage we want and will use all of our equity to fund the balance of the mortgage we can get and the price we offered (still with me?)

do you think it will be unreasonable to ask the solicitor to put through a revised lower offer in light of this?
as we have already got the wheels in motion for selling our current home i would hate to think the seller of our new home may pull out if we do this and leave us high and dry.

everyone i have mentioned this to (this being the difference between the asking price and the valuation) cannot understand why there is a difference in this direction, usually a home will be on sale for offers over £120k, valuation may be £130k and the home will sell for £145k and not home on sale for offers over £120k, and the home sells for £145k but the valuation is £110k.

still to get the solicitors answer on this as i only found out late friday.

silvercar

Either this valuation is faulty or the sellers are going to have the same problem with any other buyer.

If this is a true valuation then you were overpaying. If it is an oddity you need to find out from the mortgage company if you can pay for a second valuation.

fatblokexl

the valuation was from an independent company from the mortgage supplier.
i am aware we were always going to overpay to an extent as the offers over price was £120k and we put in £145k.
either the sellers EA vastly overpriced it or indeed the survey may have been suspect.
here is a copy of the email supplied by my Solicitor re the results he was given from the surveyor:

I have just had the call from the surveyor. He stated there was nothing basically wrong with the flat apart from location. Number 2 (which he thinks might be smaller) sold for £98,000 in April.

Unfortunately he says the maximum value he could put on it is £110,000.....

the surveyor may have assumed that this other property was very similar to the one we are going for but it isn't. i believe the other one is 2-3 bedroom, ours is 4 with its own driveway and an allocated parking spot. (none of the others have a driveway)

i wonder if the survey company will redo using a different person for a small fee or for free?

silvercar

I doubt the same survey company would want to cross check one of their own. You may need to go to a different company.

Why not phone the surveyor and have a chat about it? He may not realise the difference between the one sold and the one you are after.

fatblokexl

lender has reduced mortgage in line with the valuation so we will now have to find another £1900 to fund the difference.
just email or solicitor with a suggestion of actions we could take and would like opinions as to best one.

ask seller to reduce the price by their own good will in light of the valuation, by a figure of their own making?

we ask for £5k off the price we initially suggested?

we ask for the differnce(£1900) to be knocked off, that way we dont lose out any thing?

or put it down to bad luck/poor judgement on our behalf and carry on as is with the purchase?.

i must stress we do not want to lose this house so pulling out is not an option

fatblokexl

good news, my solicitor has managed to get the seller to accept a lower offer (saving us £5k).

lets hope it isnt reflected in his bill!!