After surveyor report - what should we offer

purpleozzie

Hi guys,

We are currently in the process of purchasing our first house. We are currently renting and the landlady phoned us recently to say she is selling the house. They had it valued by two estate agents who both valued i at £250,000. They said if we wanted it we could have it for £245,000. We cheekily offered £230,000 and this was rejected. After tooing and froing we ended up with an accepted offer of £243,500 which includes all fixtures and fittings.

We paid for a home buyers survey and the surveyor found no problems with the house but valued it at £225,000.

It is in the catchment area for one of the best primary schools in Bristol which we are pretty sure the surveyor hasn't taken account of.. In your opinion what should our next move be?

Any advice would be greatly appreciated

Thanks

Marvel1

Is the home-buyers survey with the mortgage lender?

purpleozzie

Yes. We upgraded to Home Buyers survey through the same surveyors that did a basic valuation for the Lender. In hindsight that was probably not the best thing to do..

zappahey

purpleozzie wrote: »

We paid for a home buyers survey and the surveyor found no problems with the house but valued it at £225,000.

It is in the catchment area for one of the best primary schools in Bristol which we are pretty sure the surveyor hasn't taken account of.. In your opinion what should our next move be?

Negotiate the price down to the valuation. The survey you have in your hand is a significant piece of "evidence" in your favour.

G_M

Do you believe the property is worth what you originally agreed?
What is the impact of the valuation on your mortgage offer?
Can you afford the property at the price agreed, given whatever the above impact is?

Answer the above, and you'll know what to do.

kingstreet

purpleozzie wrote: »

valued by two estate agents who both valued i at £250,000.

These are not indicative of value. They simply match what the estate agents thought they could put the property on the market for to get the vendor's business.

You have a professionally commissioned and paid-for survey which trumps anything a couple of estate agency listers had to say.

Unless you can find best part of another £20k to pay over the odds you're going to have to put the survey in front of the vendor and tell them you can't proceed at the price agreed.

geoffky

Have you done your homework on prices in your area and i mean SOLD prices not delusional asking prices..if not get moving quick..i reckon if it has been valued at 220k it is worth a little less than this after negotiations.As who pays full asking price nowadays?

kingstreet

geoffky wrote: »

Have you done your homework on prices in your area and i mean SOLD prices not delusional asking prices..if not get moving quick..i reckon if it has been valued at 220k it is worth a little less than this after negotiations.As who pays full asking price nowadays?

The marketing price was £250k. He was offered it for £245k and they settled at an agreed price of £243.5k. His surveyor has valued it at £225k, so he has to go back to the vendor to renegotiate.

Are you suggesting he should offer less than that?

Sorry - I'm confused.

molit

in my view, thr house is worth what you are willing to pay for it. The problem you have is that you will not be able to get a mortgage to that value...so, you either walk away, find the extra cash yourself, persuade the vendor to reduce the price, or try and get another mortgage/valuation.

purpleozzie

The mortgage is no problem as we have a 83k deposit.. So the lender is fine as minimal risk on their part.. According to sold prices from websites such as Zoopla most houses go for between 240k and 250k... But these were sold last year..

I heard somewhere that a good schooll can add 10% to the value of a house.. So, does this mean the actual value is 225k plus 10% ie 250k..

timmyt

purpleozzie wrote: »

Hi guys,

We are currently in the process of purchasing our first house. We are currently renting and the landlady phoned us recently to say she is selling the house. They had it valued by two estate agents who both valued i at £250,000. They said if we wanted it we could have it for £245,000. We cheekily offered £230,000 and this was rejected. After tooing and froing we ended up with an accepted offer of £243,500 which includes all fixtures and fittings.

We paid for a home buyers survey and the surveyor found no problems with the house but valued it at £225,000.

It is in the catchment area for one of the best primary schools in Bristol which we are pretty sure the surveyor hasn't taken account of.. In your opinion what should our next move be?

Any advice would be greatly appreciated

Thanks

a valuation by the surveyor - whether private or lender - is 100% irrelevant, unless the lender won't lend you enough to enable you to buy. you then put that fact to the seller and see if they will reduce. they could say no and wait for someone else who doesn't need a mortgage or as larger a percentage of borrowing as you.

price is what you and other buyers will pay, not what a surveyor says