Surveyor priced house less then offer price

darkcloudi

I offered for a house for £124,000 which does require some work which I was aware of. Roughly £5000 which was also picked up by the surveyors report.

The survey results have come though today and have priced the house at £115,000. What happens now? Do I renegotiate another price? I'm a first time buyer and know very little in the area so any adivce is welcome.

chuckles1066

darkcloudi wrote:

I offered for a house for £124,000 which does require some work which I was aware of. Roughly £5000 which was also picked up by the surveyors report.

The survey results have come though today and have priced the house at £115,000. What happens now? Do I renegotiate another price? I'm a first time buyer and know very little in the area so any adivce is welcome.

Yep, take the surveyor's report to the seller and show him.

Make another offer - that's the only sensible thing to do.

darkcloudi

Thanks chuckles for your response. Hope the seller will co-operate as the house was on the market for £131,000 and he wanted more or less that amount. However, as I was a first time buyer he was willing to drop it.

I guess I can ask the estate agents to see whether he will renegotiate.

As the mortgage provider was offering me 90% of the mortgage will they decide now to offer me less considering the circumstances ( i.e. house priced less then markey value ) ?

chuckles1066

darkcloudi wrote:

Thanks chuckles for your response. Hope the seller will co-operate as the house was on the market for £131,000 and he wanted more or less that amount. However, as I was a first time buyer he was willing to drop it.

I guess I can ask the estate agents to see whether he will renegotiate.

As the mortgage provider was offering me 90% of the mortgage will they decide now to offer me less considering the circumstances ( i.e. house priced less then markey value ) ?

They will have their own survey done (at your expense of course) and will base the amount they are prepared to lend on that.

herbiesjp

They will offer on the basis on the value on the survey so 90% of 115k as opposed to 90% of £124k

darkcloudi

Thanks for all the responses. Hopefully I can renegotite the offer price.

Mark_petty

I had the same thing happen on my flat I was selling. It was up for £176k but the mortgage place only said it was worth £160k
Firstly I looked at similar properties down my road and noticed they were selling for a lot more.
Secondly we had other people who were willing to buy the place if these didn't
Thirdly we paid £100 for an independant valuation to be done, thats how we came up with the amount.
I basically went back to the buyer and told him this and said he either sorts the mortgage out or I will sell to the other people.
In the end he went through a different mortgage company and it was valued at £176k and sold for that amount.

Gorgeous_George

The surveyor has 'valued' the house at a sum that will supportthe the building society's proposed loan. I think that the BS will lend you all that you need.

I doubt that the seller will lower their price but always worth a try. Surveyors are surveyors. Estate Agents usually have a better understanding of the market valuation.



GG

HugoSP

We had this recently with a buy to let.

We knew that a figure of approximately £130k odd had been offered for the house as one of its gardens adjoined that owned by another investor. We offered £130 subject to survey and then the mortgage valuation came back at £105!

Our strategy with the agent was to hide behind the morgage company and mention that it was them preventing us from buying the house as we were going for max loan to value for tax purposes and couldn't afford to pay the original price.

We knew the house was worth some £125k min due to location. The surveyor seemed to fail to appreciate where the house is. It's in one of the best parts of the area that there are. Our reponse was to offer £117. It was at that time that the budget increased the Stamp Duty threashold to £120k, so when the offer was accepted we avoided stamp duty. The house cost us nearly £15k less than it would have done without the survey. We felt a little bad about that as the owner was a retired chap who was eager to sell up and move into sheltered housing. But he agreed under the circumstances. The agent had copies of our valuation to prove our case to him.

The owner bore no grudges. He had originally worried about leaving it clean and tidy for us nd clearing out all the junk. We said that he could just take what he needed and leave the rest where it was. Clearing it out would have cost him a lot of money as he would have needed a skip. We were set up to clear it out at minimal cost, so I suspect that goodwill played a huge part. He even left his tools specifically for me, some of which I have found very useful!

As if to prove our point later, the owner of the garden next to ours approached me and asked if I would consider selling it to him or taking part in a joint newbuild project using both gardens. We declined and he then did an excellent job IMO of developing his property and selling at a profit.

darkcloudi

Thanks again for the responses. The surveyors report just mentions the offered price is excessive. The reason for my offer was purely due to area and location and other properties have sold higher due to it having work done so hopefully I can either renegotiate if problems arise with the mortgage company.

Guess I got to wait till the new year to find out exactly what will happen.

brummybloke

i would offer less and show the report, winter is always the slowest time of year to sell a property, i doubt there would be loads of interest from people at this time of year unless it was a real bargain.

if he wants shut of the property and you can get your mortgage people to see the bargain ( take in local property news showing simular property in the road), i would think they may increase the valuation, although i was told when i got my house that the valuation from the surveyors was the amount the loaner would take as the price they are willing to risk on the property.

good luck and you are doing the right thing by trying to get money off and also by buying your own place.