Valuation less than asking price?

ladymud

Hi

Hoping for some advice.. We viewed our dream house advertised at offers over £190k. On the condition that the vendor left all furniture, fixtures etc. we offered £195k (probably too much in hindsight but we really want the property).

Sold sign goes up but now 2 weeks later mortgage company have valued at £180k and have reduced mortgage offer. We can now pay £185 max by putting down a larger deposit.

We're in direct contact with the vendor and have explained situation. They are mad keen to sell (various personal reasons), have practically moved out following our offer but 'need' 190 minimum and are now talking to their estate agent.

House has been advertised since Sept '10 and has laready been reduced by 10k. I've spent all weekend doing further research on prices, market etc and now going round the bend.

Sorry for long post - whats likely to happen next?

BoGoF

Either the vendor accepts a reduced offer or you find the extra needed to make it £190K.

Personally I'd be rather worried at the prospect if instant negative equity but if it's your 'dream house' then that be less of an issue for you.

poppysarah

Dream house might turn out to be a nightmare if you overpay.

Has it been handknitted in yoghurt covered tweed? No - then it's probably NOT unique.

You need to take a step back from the emotions of the situation.

Go view some others - DO NOT BUY YOUR "dream home" until you have viewed some others now.

Identify what you really like about it and then score all the houses you have viewed out of 10 for

location
size of bedrooms
size of kitchen
style of rooms
garden
potential
neighbours


Look up crime numbers too on http://maps.police.uk/

brit1234

I would look at other properties too. If they are unwilling to drop the price I would look else where.

At present there is a 30% difference between average selling prices and asking prices. Its a buyers market and there is no way I would offer over an asking price at the moment.

Take a step back, look around, you have time.

DVardysShadow

poppysarah wrote: »

.... Has it been handknitted in yoghurt covered tweed? No - then it's probably NOT unique.k/

:rotfl::rotfl::rotfl: I wouldn't eat it either.

JQ.

I would be offering no more than £180,000. The sellers personal circumstances are not your problem and as such the fact they "need" £190,000 should not affect what you offer.

Honestly, you should speak to the Estate Agent and tell them you can no longer afford £185,000 and your final offer is £180,000, take it or leave it. The fact that they have moved out and are desperate to sell should act in your favour. But I would not be paying £185k for something worth £180k.

ukcarper

brit1234 wrote: »

I

At present there is a 30% difference between average selling prices and asking prices. Its a buyers market and there is no way I would offer over an asking price at the moment.

.

have you any proof of this?

cajef

The property has been on the market since last September if they are that mad keen to sell they will accept your offer, tell the estate agent £180K that is what the valuation is, that is what it is worth in todays market and it is your final offer and let them do the work if they want their commission, do not try negotiating direct with the vender yourself and let silly things like dream home affect your judgement, there are plenty more properties on the market.

paddyrg

I think you'll do as well to wait and treat this as a lucky escape - I don't think the market is even close to bottom yet. Interest rates are currently VERY LOW INDEED, as soon as they go up as they will have to do (it is when, not if), then there will be borderline people now who are forced to sell, which will depress prices. You may find your dream house drops into your price range with time, or you may find somewhere dreamplusplus dips into it.

Gorgeous_George

The valuation is NOT what it is worth. The valuation is a number made up by a bloke to satisfy the lender. Just as when valuations were much higher (pre 2007) and much lower (pre 1985), it is just a number.

But it is real money. Is this the house that will suit you for 10 years or more? If you have kids? Lots of kids? Get divorced? Can you afford it if mortgage rates rise in the near term? And if one of you loses their job?

If you agree with the valuer and it is worth £180K to YOU, is the furniture worth £10K? How much could the vendor sell their UNWANTED furniture for? Would they have to pay to take it away?

Ask yourself a thousand questions, look in the mirror and make a decision. Live with that decision and be happy.

GG

brit1234

brit1234 wrote: »

At present there is a 30% difference between average selling prices and asking prices.

ukcarper wrote: »

have you any proof of this?

average property asking price is now £238,874 (Rightmove May figures)

average property selling price is now £163,083
(Landregistry, May figures)

Sorry the difference is 31.7% between asking prices and selling prices. Asking prices are even more inflated.

ukcarper is that proof enough?

Sources
http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=533715&in_page_id=57&position=moretopstories
http://www.propertywire.com/news/europe/uk-property-prices-registry-201106035243.html