morgage house survey valuation lower than our offer price - what to do???

chert

We currently have an offer of £392,000 on a 4 bed house in surrey.. the problem is the morgage company has just come back with a valuation of £365,000 based on them visiting the property and other sales on the same street. We are asking for a morgage of £132,000 which the back very nearly did not give us. The remainder money is our capital from a previous house sale...seriously worried that we could loose our hard earned money on this as the gap between offer price and morgage valuation is £27K. Is it just better to rent until property market calms or risk paying over the odds now..? Do morgage valuations really mean anything or are they generally very conservative?? Heavily pregnant with 2nd child and need to make a decision quick as house we rent currently is far to small for new baby. HELP!!:eek:

opinions4u

It's your choice what you pay for this property. It sounds like you have no affordability issues.

I would look to renegotiate the price downwards based on the valuation. But if you want to pay the price you've offered, you can.

Any negotiation on price should only take a few days.

dunstonh

Tell the estate agent that the valuation has come in lower and renegotiate the price. The vendor may refuse but if you dont try you dont get.

Do morgage valuations really mean anything or are they generally very conservative??

They certainly mean more than an estate agent valuation which is typically around 10-15% more than the likely market value. How much did you knock off the asking price with your offer?

blueberrypie

Decide what you think the house is worth, then go back to the seller and tell them what value your lender has placed on it, and negotiate. If you decide it's worth £380k and the seller won't go to that price, walk away.

If your bank will lend you the extra, and you can afford the extra on the monthly payment, you have a choice. If not, you don't.

Don't rush into a decision based on the new arrival. New babies don't really need very much space, but they do like to have happy parents - not parents who have just realised they spent nearly £400k and are regretting it.