House undervalued - what now??

leftieM

We had an offer accepted on a house a month ago. The property went on at 195k and our offer was 235k. It just bid up and up and up. Our's was joint top offer and the vendor chose us over the other bidders.
Our surveyor went out 3 weeks ago. We got a valuation of 225k with 235k if essential work was carried out on the damp, woodworm and timber decay. We got the damp report quoting £445 to do the work.
The survey itself only arrived today as the surveyor was sick. It doesn't mention anything major apart from the damp as being essential and the heating system is ancient but we knew that and have budgeted to replace it when it dies(the survey doesn't say it needs replaced by the way). Other things required are some repointing, attic insulation and testing of the heating system and electrics.) The survey concludes by saying the house needs extensive remedial/modernisation works (not detailed in the homebuyer's report.)
What baffles me is why such an undervaluation. In a sluggish market I could understand the bank being a bit nervous or if there was 10k of work required we would want this reflected in the price we paid, however the prices in Belfast have gone mad (rising by about 8% a month at the moment) and we have a deposit of 103k so even if there was a problem we would pay not the bank.
Now we risk losing this house which has a queue of people wanting it whose surveyors won't give it an undervaluation.
Is it game over? Do surveyors ever change their minds??

Doozergirl

I'm sure your mortgage company will still lend the amount you need, considering your deposit.

You have to decide whether the works are extensive enough to try and renegotiate; sounds like you already knew about most of it already though and nothing the surveyor has mentioned sounds that bad to me. Otherwise, you just go ahead and purchase at the agreed price.

leftieM

I phoned the mortgage company and they are only interested in the damp report so I can relax for the next few hours (until something else panics me!!)
This house buying thing in a buoyant market is totally stressful. Then you worry that if you don't do it now and prices continue to rise you won't be able to afford a meaningful jump up the ladder.

Angela_D_3

leftieM wrote:

I phoned the mortgage company and they are only interested in the damp report so I can relax for the next few hours (until something else panics me!!)
This house buying thing in a buoyant market is totally stressful. Then you worry that if you don't do it now and prices continue to rise you won't be able to afford a meaningful jump up the ladder.

Then don't do it and wait it's simple supply and demand, you stop supplying and they can't demand. Why do people not realise this ??????

Ian_W

Angela_D wrote:

Then don't do it and wait it's simple supply and demand, you stop supplying and they can't demand. Why do people not realise this ??????

Erm, I'll have a stab ...

Is it that there's no National union of housebuyers?
Err, perhaps it's that people want to buy somewhere to live?
Or could it be no-one else is as clever as you?

No, No, Okay, go on, I know they're not right, so what's the right answer?

Angela_D_3

Ian_W wrote:

Erm, I'll have a stab ...

Is it that there's no National union of housebuyers?
Err, perhaps it's that people want to buy somewhere to live?
Or could it be no-one else is as clever as you?

No, No, Okay, go on, I know they're not right, so what's the right answer?

It is true clearly the sheeple aren't as clever as me which is why they'll be lambs to the slaughter.

Baaaaa

leftieM

Angela D, you're so right. I'll phone the estate agent in the morning and tell them the move is off. It'll only cost a grand or so. Thank God you posted. I thought I was doing well doubling the square footage of my home and moving to a leafy suburb but I think I'll wait for the property crash. It'll only be a few years yet. Sure if I have any more kids I can always put a shed up at the back for them. Hey, maybe one of them will get knocked down on the busy road outside my house and that will save me moving ever!
I wish I was as clever as you!

mr.broderick

Sounds to me like buyers remorse. Well you bid up and up didn't you? You must have wanted it. Id get it bought, there'll be no crash trust me.

mr.broderick

Angela_D wrote:

Then don't do it and wait it's simple supply and demand, you stop supplying and they can't demand. Why do people not realise this ??????

What's the problem here? cant you afford to buy a house? You've missed the boat there will be no crash my mum told me

leftieM

Oddly we didn't bid up on this house. We adopted a 'wait and see' and asked to be allowed to make a bid at closing. We matched the top offer - what else could we do?
The woman who owns the house has kept it well and was very upfront about what needed done so we've gone into this with our eyes open. Sure, financially it's a gamble but I think £235k for a 5 bed 3 storey Edwardian semi 1 and and half miles from the city centre is good. Even if there is a crash we'll be unlucky if the price drops below our mortgage of £132k. If interest rates rise by more than 3% then I can find a job to fund that(we are buying this on one salary).
Maybe it's a mistake but we can't see into the future so we can only make the best decision based on what we know now and what we can reasonably predict.

Poppy9

I don't think it helps getting nasty with one another - remember Martin's advice Please be nice to all MoneySavers.

If you post on a forum asking for advice you will get varied opinion. Many will think it's madness to bid so much over the asking price, it doesn't mean they are not on the property market themselves, it may just be they bought at different time when the market was much flatter and nobody achieved asking price sales. I personally have never paid asking price even for my latest house which is in the most desirable area in my town, it's how the market was at the time.