**value changed on home report**

istabraq

Hi,

I'm looking at a house in Scotland where the home report value was £255k. We had an offer of over this value accepted and the deal was on.

An issue has developed in relation to a small parcel of land on the property which has caused the surveyor to reduce the value to 250k.

The seller still wants the same amount over 250k (which is over 6k incidentally) as I was paying over 255k, but obviously the value of the house now sits at the magical stamp duty threshold.

Is it reasonable to think anyone would pay this amount over the value of the house in the current climate.

I can't see any way round it.

pinkteapot

I hadn't read this before replying to your other thread. In this market, no, there is absolutely no reason to pay over the odds. This applies doubly with a house that's bumping around the top of the SD band... In England at least. Is it normal in Scotland to pay more than the valuation?

istabraq

pinkteapot wrote: »

I hadn't read this before replying to your other thread. In this market, no, there is absolutely no reason to pay over the odds. This applies doubly with a house that's bumping around the top of the SD band... In England at least. Is it normal in Scotland to pay more than the valuation?

Years ago maybe but not at the moment i don't think.

googler

So you offered over £250k, the Home Report has been 'refreshed' as it was over 12 weeks old, and the new value is now £250k?

All you do is instruct your solicitor to revise your offer to £250k. Either the owner accepts or declines. What's 'horrible' about it? Standard stuff for the solicitor(s).... Nobody else will buy it at just over £250k, without some form of stamp duty mitigation from the seller - like a contribution of 1 or 1.5%

I take it missives have not been concluded yet?

One way 'round it' is to walk away and look for another house in Bearsden, surely?

CloudCuckooLand

You were prepared to pay stamp duty before. Had built that into your budget for the offer, presumably.

Can see why the vendor thinks they should get the same money (just -£5k). So pay £256k. And the stamp duty.

What's the problem with doing that, if you want the place?

Your mistake was in offering more than £255k in the first place. What made you? Other buyers? Are they still around, about to outbid you?

istabraq

googler wrote: »

So you offered over £250k, the Home Report has been 'refreshed' as it was over 12 weeks old, and the new value is now £250k?

All you do is instruct your solicitor to revise your offer to £250k. Either the owner accepts or declines. What's 'horrible' about it? Standard stuff for the solicitor(s).... Nobody else will buy it at just over £250k, without some form of stamp duty mitigation from the seller - like a contribution of 1 or 1.5%

I take it missives have not been concluded yet?

One way 'round it' is to walk away and look for another house in Bearsden, surely?

Above correct apart from we offered over the original value of 255.

istabraq

CloudCuckooLand wrote: »

You were prepared to pay stamp duty before. Had built that into your budget for the offer, presumably.

Can see why the vendor thinks they should get the same money (just -£5k). So pay £256k. And the stamp duty.

What's the problem with doing that, if you want the place?

Your mistake was in offering more than £255k in the first place. What made you? Other buyers? Are they still around, about to outbid you?

I know maybe offering over 255 was debatable but as you say we were willing to do it.

We thought that as the value was at 255 it would be reasonable for them to expect over 250 for the house.

What has changed my view is because the value is now 250 will anyone pay over that for the house? Paying the stamp duty on a house valued at 255 was ok but i'm not sure it is on a house valued at 250.

CloudCuckooLand

istabraq wrote: »

Paying the stamp duty on a house valued at 255 was ok but i'm not sure it is on a house valued at 250.

Another mistake. Stamp Duty hinders sales up to £275k...

You've completely screwed up the negotiations on this, with muddled thinking, it appears from where I am sitting.

Walk away. Hope they panic and get in touch.

dippy

A house is only worth what somebody is prepared to pay for it.

Is there anything special about the house? Is it your dream home? Or is it just run-of-the-mill and good-enough?


If you're not keen on overpaying 5K for the house + 5K to the taxman (assuming you're not FTB), revise your offer down.

istabraq

dippy wrote: »

A house is only worth what somebody is prepared to pay for it.

Is there anything special about the house? Is it your dream home? Or is it just run-of-the-mill and good-enough?


If you're not keen on overpaying 5K for the house + 5K to the taxman (assuming you're not FTB), revise your offer down.

It is perfect for us. It has been extended and doesn't need a single thing done to it.

My main concern is that the house sells in a few months time for a price i'd be willing to pay just now.

The general consensus i'm getting is that if a house is valued at 250k there is almost no chance of anyone paying over that for the property. Am I correct on this??

somethingcorporate

Depends on who does the valuation but only very rich (or very foolish) people would pay the extra SD.