New Build with Part Ex and Low Mortgage Valuation

mrs-h_3

toneb wrote: »

In the North West near Preston. It would appear that, rightly so, the surveyors are not just taking the developers "asking" price as the value. Though it would seem that my developer would like us to keep having it valued until someone does agree with them. I am trying to be reasonable and base my offer on the average of the 3 valuations - theirs, The Leeds and The Nottingham. Just not sure what sort of mark up is in a new build and if they will have enough to play with to accept my offer, taking into account they are probably losing 12K on my part ex.

Good luck with yours

Ours is in the north west too but not near Preston. I know there is a mark up on new builds, but with the guarantees etc and comfort of all being new i think personally its worth a bit extra. I doubt that any valuer will say its worth the full cost if you have had 3 done. What happens if you have to pull out because of the valuations do you lose anything...
Who ever said part exchanging is hassle free eh???? Good luck keep us updated!

toneb_2

mrs-h wrote: »

Ours is in the north west too but not near Preston. I know there is a mark up on new builds, but with the guarantees etc and comfort of all being new i think personally its worth a bit extra. I doubt that any valuer will say its worth the full cost if you have had 3 done. What happens if you have to pull out because of the valuations do you lose anything...
Who ever said part exchanging is hassle free eh???? Good luck keep us updated!

I have paid a £500 reservation fee plus the booking fee for the mortgage as well as £300 solicitors fees. Not sure what I could get back if anything...

We too thought new build + part ex = easy!

You are not buying on Buckshaw then?

mrs-h_3

No ours is in Stalybridge.... Have you exchanged contracts on your part ex property? If you have maybe you are in a better position to negotiate?

toneb_2

mrs-h wrote: »

Have you exchanged contracts on your part ex property? If you have maybe you are in a better position to negotiate?

No, we won't exchange until we can exchange on both. Will see what they come back with but hopefully they will have enough to play with and accept 230K. Otherwise, we will just have to walk away and start again!

LongTimeThinker

Hi Toneb.

Not sure if this helps you or not, but pretty much the same happened to us just different values.

Everything was going OK with us apart from when the valuation came back on New Build bank said it wasnt worth that. Builder said it is, we will get indipendent surveyor to value it to prove it.

We were messed around for 3 weeks and at the end of it we were not told the results of the survey, were not given a copy and the builder told us exactly the same line "we strongly disagree".

Despite us saying that we cant see how that will help change the lenders mind (and we question how independent the surveyer was!) we pulled out.

Seemed they were very calculated and logical when valuing our house, much less than we had it valued at. Yet they were not logical at all with theirs, they were calculated - in their favour!

Fortunately for us our house had already sold (at a much lower price than we would get for part ex) but for us, the firgures work so we are progressing on our own via estate agent.

Do you know if your house has sold already, if so at what price? Maybe you could pull out and continue with the sale if the figures stack up?

toneb_2

Thanks LongTimeThinker, they have sold my part ex as such but for 9K less than what they offered me for it. Also the new build is complete and I am sure they will want it shifted - they have around 10 properties all completed sitting there unsold. So I am hoping they will accept my offer. They seemed to think that we could keep having it valued until someone agreed with them though. If we take the average of 200K, 225K and the asking price of £245K, then this comes out at £223K. So I feel I have been fair my offering them £230K. I guess it will come down to how much they want to sell their property and release the money they will have tied up in it. If not we will pull out and I will put mine back on the market as I would not accept what they sold it for, as I would end up losing an additional 12K from what they offered me in part ex.

Thanks again

LongTimeThinker

toneb wrote: »

Thanks LongTimeThinker, they have sold my part ex as such but for 9K less than what they offered me for it. Also the new build is complete and I am sure they will want it shifted - they have around 10 properties all completed sitting there unsold. So I am hoping they will accept my offer. They seemed to think that we could keep having it valued until someone agreed with them though. If we take the average of 200K, 225K and the asking price of £245K, then this comes out at £223K. So I feel I have been fair my offering them £230K. I guess it will come down to how much they want to sell their property and release the money they will have tied up in it. If not we will pull out and I will put mine back on the market as I would not accept what they sold it for, as I would end up losing an additional 12K from what they offered me in part ex.

Thanks again

No problem. The other thing I would say is we were offered half of the difference, so say we agreed a price of 100K and the bank valuation came back at 90K, they offered 5K back on completion.

Now they only started to listen once I got firm with them and said we are looking at pulling out and would give them a decision by close of business next day.

They also hinted at giving us the whole amount on completion when we actually pulled out, but to be honest we weren't interested - we had had enough by that point.

If you do decide to pull out, you may be suprised. Leave on good terms and see what happens.

toneb_2

After a lot of to'ing and fro'ing they have accepted our offer so things are back on track. Thanks again for everyone's input.