HELP!! New Build Under Valued!

iHelp_2

Hi Guys. I need help for my dillema!

I have reserved a new build flat in Surrey for £1000. The asking price is £208,000 and I assumed with the quality of the builders and location I wouldn't have a problem with the valuation...I was wrong.

When I reserved the flat I tried to negotiate price but the sales team based at the development said that prices were not negotiable.

The surveyors have only valued the flat at £190,000. The reason being is that although they believe the flat to be quality they think that when I come to selling, I will not recoup the initial £208,000.

My mortgage broker contacted the development for comparables which were sent to the lender, they valuer still did not budge on the valuation.

Could anyone offer me and advice on the situation? Has anyone been in this situation before and been able to negotiate?

The worst thing is I should of be exchanging contracts this monday (28/2/2011), I left a message with the solicitor's secrertary yesterday to inform of situation.

Please help this FTB.

Thanks in advance

poppysarah

Offer less.

Why pay more than the value?

brit1234

RE "HELP!! New Build Under Valued!"

I think you will find the builder overvalued it instead. If you are happy to pay more than it is worth then you have to pay the extra.

Lenders very well know the dirty tricks builders have played especially after the housing bubble with their gift deposits and land registry fraud.

House prices are falling why do you want to overpay especially when interest rates are going up.

betmunch

Offer them what the property was valued at, if they dont accept walk away.

Then go check your paperwork to find out under what circumstances you can have your reservation fee back.

If you really still want to go ahead with the purchase you will need to come up with more cash, or find a lender that instructs surveyors to value New build properties in a more favourable light than your current lender.

evoke

Did you offer the full asking price?

If so, LOL.

iHelp_2

Thank you guys so much for your input!

I have saved enough to buy the property at asking price but obviously the valuation was a setback, now I can't raise the extra funds!

The salesman said other flats have been valued higher than asking price when I reserved mine, so I really doubt they will negotiate as they pride themselves in their builds. I have heard other developers negotiating prices before reservation, not in this case

Such a shame this was meant to be my first home.

I'm going to call them today and explain what's happened. And probably just be depressed for a while anyone fancy a drink :beer:

iHelp_2

evoke wrote: »

Did you offer the full asking price?

If so, LOL.

I know! Shame on me! But they wouldn't accept offers and there was no negotiating!

poppysarah

iHelp wrote: »

Such a shame this was meant to be my first home.

I'm going to call them today and explain what's happened. And probably just be depressed for a while any fancy a drink :beer:

Don't be depressed. The bank is trying to save you money. Which is good.

iHelp_2

poppysarah wrote: »

Don't be depressed. The bank is trying to save you money. Which is good.

Thank you. Well there's always next time and I do like saving money!

evoke

Rule #1 of buying a property: never believe the EA

Rule #2 of buying a property: never believe the seller

I'd go back to the developers and put an offer in at the mortgage provider's valuation and see what they say. Chances are that any other buyer will have the same problem with respect to a lower valuation. The developer will know this. If they still don't accept the offer then tell them to stick their property where the sun doesn't shine and find a seller with a bit more common sense.

iHelp_2

evoke wrote: »

Rule #1 of buying a property: never believe the EA

Rule #2 of buying a property: never believe the seller

I'd go back to the developers and put an offer in at the mortgage provider's valuation and see what they say. Chances are that any other buyer will have the same problem with respect to a lower valuation. The developer will know this. If they still don't accept the offer then tell them to stick their property where the sun doesn't shine and find a seller with a bit more common sense.

This is what I'm going to do on my lunch break! Cheers!

I think I was overwhelmed buy this one because of the Mrs, because I'm usually a very Shrewd Mr lol! Its a lovely flat but honestly asking price 18k over valuation :exclamati