Valuation lower than asking price

konzo

I am currently in the process of buying my first home from a large Countryside property development at Lymington place, Dagenham .
Everything was going fine and smoothly until I got a call from my Broker saying the valuation had come back saying the house wasn’t worth £235k but £210k,
Now I am left sitting in the middle somewhere with Countryside Property insisting it is worth what they are asking and the lender saying it’s worth £25k less than that and neither are willing to budge.
Does anyone here have any ideas what I can do?
I am really quite unsure as to where I can go from here, as I really don’t want to loose the house!

Some help would be great.

Thanks
Konzo

TonyMMM

Do you want to pay £25k over the odds for your first house ?

It puts you in a strong position as a buyer. Go to the developers and say "This is what the property is worth, I will proceed at £210k" .....and be ready to walk away.

Don't forget that any other buyer who needs a mortgage is going to be hit by the same problem, and prices are still falling so possibly more so. It will be a case of who blinks first, so hold your nerve and start looking at other houses (and make sure they know that's what you are doing)

GMS

Either find the extra cash needed or walk away.

andypr1976

If you want to live there for a long time, you could work out a compromise, surely? But you may struggle to sell later down the line and lose out

WellKnownSid

Valuers invariably base their valuation on the second-hand value of the property. New builds are notoriously overpriced, and if the bank have to sell it due to repossession - they won't get the inflated new-build price.

Offer the valuation and walk away if the developer doesn't agree, otherwise you'll be kicking yourself in six months time when you invite all your new neighbours round for a housewarming and they tell you how they got 25-35k off the asking price and you didn't...

kingstreet

1. Apply for another mortgage and hope the new lender uses a different surveyor

and/or

2. Fork out £25k over the odds if the builder won't move on the price if you have a spare £25k knocking around to increase your deposit

and/or

3. Pick your ball home and go find another game as you're likely to lose this one.