What to do next

evansmummy

This time last week everything was fab. Sold our house in two weeks and had an offer accepted on the house we wanted after a battle with another buyer.
Then a valuerer undervalued our house by £20k because of blo**y nethouseprices.co.uk (2 houses on our street were unusually low in price due to being nearly derelict so he valued ours in the same region). Our buyers wanted to knock us down by £15k so we're back on the market.
Not sure what to do with regards to the new house we intended to buy. We still want it but if we tell them we've lost our buyer it'll be taken off us, understandably, and offered to the other couple. We're just hoping they don't find something immediately and that we find a buyer before anyone is the wiser!! Well I can dream!!

Orpheo

Firstly, the surveyor has downvalued your property, you say because of nethouseprices.co.uk. Is this your opinion or fact? I find it hard to believe that the surveyor, appointed by the lender, would simply use nethouseprices as the basis for his valuation.

By returning your house to the market you are running the risk of only being a viable purchase to someone who doesn't require a mortgage. How do you know that the next mortgage lender's valuer won't conclude the same or even lower? The mortgage lender will reduce the amount that they are willing to lend.

Secondly, I find it incredible that you are even considering not telling the next in the chain, you would leave them hanging happily in the belief that they have a proceedable buyer when in fact they don't? You might as well be honest, they will find out anyway if they have a decent EA and/or decent solicitor.

Soot2006

The house was "under" valued by £20k but the buyer only wanted £15k off purchase price?
This might be the best offer you're going to get. Very likely that next surveyor will have similar opinion.

Seanymph

I was on the other side of this recently - last week our valuer said a house we had an offer in was only worth 155k. they were marketing at 175k and had accepted our offer of 172.

We reoffered at 165 - neatly in the middle of the two - and they have gone back to market. But they will find problems if anyone needs a mortgage.

Can't you accept the lower offer?

DannyboyMidlands

What's the point of sticking it back on the market? The same thing is likely to happen next time too.

Orpheo

Seanymph wrote: »

I was on the other side of this recently - last week our valuer said a house we had an offer in was only worth 155k. they were marketing at 175k and had accepted our offer of 172.

We reoffered at 165 - neatly in the middle of the two - and they have gone back to market. But they will find problems if anyone needs a mortgage.

Can't you accept the lower offer?

I think you are generous for offering 165, I'd have dropped to 155.

Actually, I'd have probably gone down to 150.

:cool:

phoebe1989seb

I can sympathize with your situation as we are currently awaiting the findings of our buyers' valuation and survey on our house............which coincidently also sold in two weeks. As someone with a house that is totally unique to the area - large period property in a vast expanse of 50s onwards bungalows - we are very concerned that the surveyor will have undervalued it, especially as any houses in the area to have sold recently went for well below our own very reasonably priced (marketed at £20k less than we paid 3 years ago despite having spent over £40k on renovations) house.

I cannot see how one can achieve a higher (and fair) valuation when the surveyors/valuers seem oblivious to the fact that properties in a given area can differ wildly in style, size and condition.

Good luck with finding another buyer and fingers crossed I won't be in the same position any time soon

Orpheo

phoebe1989seb wrote: »

I cannot see how one can achieve a higher (and fair) valuation when the surveyors/valuers seem oblivious to the fact that properties in a given area can differ wildly in style, size and condition

:rotfl:

Perhaps all is not as it seems. It is hilarious that people trust the unqualified EA's 'market appraisal' but balk at the graduate qualified and RICS chartered surveyor's valuation.

&_&

Perhaps it is that EAs speak honey?

mlz1413

I also struggle with the reason for the under valuing - I think you ought to get on the phone to the valuers and ask for that reason to be put in writing and then appeal it.

I would seriously consider the valuers reasons for their price as this will affect any vlauation you have done - which could lead to many other prospective buyers pulling out.

I think not telling the next in the chain is only something you can do until you have concrete facts of why the valuation was given, and that really should only be a few days ie until the end of the week max.

Orpheo

mlz1413 wrote: »

I also struggle with the reason for the under valuing - I think you ought to get on the phone to the valuers and ask for that reason to be put in writing and then appeal it.

I would seriously consider the valuers reasons for their price as this will affect any vlauation you have done - which could lead to many other prospective buyers pulling out.

I think not telling the next in the chain is only something you can do until you have concrete facts of why the valuation was given, and that really should only be a few days ie until the end of the week max.

The problem is that the valuer/bank/buyer isn't obligated to the OP, so they will probably not feel it necessary to explain themselves.

iB1

evansmummy wrote: »

This time last week everything was fab. Sold our house in two weeks and had an offer accepted on the house we wanted after a battle with another buyer.
Then a valuerer undervalued our house by £20k because of blo**y nethouseprices.co.uk (2 houses on our street were unusually low in price due to being nearly derelict so he valued ours in the same region). Our buyers wanted to knock us down by £15k so we're back on the market.
Not sure what to do with regards to the new house we intended to buy. We still want it but if we tell them we've lost our buyer it'll be taken off us, understandably, and offered to the other couple. We're just hoping they don't find something immediately and that we find a buyer before anyone is the wiser!! Well I can dream!!

a) Won't you have the same problem again if you have an offer accepted again in 2 weeks?

b) What if you don't get another buyer in 2 weeks. Are you going to string along your seller?