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Valuation less than original agreed price
Markie11
Posts: 131 Forumite
I've had my property on the market for 6 months now but just over a month ago we accepted an offer. The price agreed is 15% less than what it was was originally up for, this being based upon the average valuation from local estate agents.
Since accepting the offer the buyer has had their own personal surveyor come out to check the property and then her mortgage lender had a survey done. Nothing came back from her own surveyor but the mortgage lender's surveyors report came back valuing the property £5k less than agreed, though no work to be done. I found this information out over two weeks ago via my EA who was told over the phone. They were initially asking me to think about dropping the price to match the valuation. I spoke with solictor who wanted to see evidence of this valuation to see if there was anything suspect in the valuation, though the report was not available to the EA at the time. This report has only just arrived to my solicitor today via my EA not the buyer's solicitors, which I thought it would have done.
I have some reservations over my EA. We've used an online EA who charge 0.5% of the sale price. Given that there is now a 5k difference between agreed and valued (mortgage lender's valuation) then the EA for the sake of £25 quid is not too bothered. They seem to be acting more on behalf of the buyer rather than myself. I wonder if there is back hander for the online agent from the buyer to push me down. I also wonder whether he is not actually speaking to the buyer and instead looking to push me down on the price, just to get his lump payment. I don't particularly trust him.
Earlier today he rang to say the buyer have made a full and final offer of 3k less than agreed (2k more than valuation).
Anybody able to provide any advice on how I should approach this. Best tips on how to get the best deal for me.
Original price £140k
Reduced steadily to £132 then £123k
Agreed £120k
Valuation £115k
New offer £117k
Do I:
- Stick to my guns at £120k, as agreed
- Negociate higher than £117k, if so, how and what is the best way to do so
- Put back on the market.
Since accepting the offer the buyer has had their own personal surveyor come out to check the property and then her mortgage lender had a survey done. Nothing came back from her own surveyor but the mortgage lender's surveyors report came back valuing the property £5k less than agreed, though no work to be done. I found this information out over two weeks ago via my EA who was told over the phone. They were initially asking me to think about dropping the price to match the valuation. I spoke with solictor who wanted to see evidence of this valuation to see if there was anything suspect in the valuation, though the report was not available to the EA at the time. This report has only just arrived to my solicitor today via my EA not the buyer's solicitors, which I thought it would have done.
I have some reservations over my EA. We've used an online EA who charge 0.5% of the sale price. Given that there is now a 5k difference between agreed and valued (mortgage lender's valuation) then the EA for the sake of £25 quid is not too bothered. They seem to be acting more on behalf of the buyer rather than myself. I wonder if there is back hander for the online agent from the buyer to push me down. I also wonder whether he is not actually speaking to the buyer and instead looking to push me down on the price, just to get his lump payment. I don't particularly trust him.
Earlier today he rang to say the buyer have made a full and final offer of 3k less than agreed (2k more than valuation).
Anybody able to provide any advice on how I should approach this. Best tips on how to get the best deal for me.
Original price £140k
Reduced steadily to £132 then £123k
Agreed £120k
Valuation £115k
New offer £117k
Do I:
- Stick to my guns at £120k, as agreed
- Negociate higher than £117k, if so, how and what is the best way to do so
- Put back on the market.
0
Comments
-
Take the £117k and run, run, run!0
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BitterAndTwisted wrote: »Take the £117k and run, run, run!
Totally agree! If you put it back on the market you're going to run into the same problem with the next buyer (unless a cash buyer).0 -
I can sympathsise with both yourself and the buyer in this position.
The buyer has the value outlayed in black and white by the surveyor and has nearly offered to meet you halfway, so they will be putting in a bit more of their own cash.
Have you asked your agent to go back and ask for more?
And the real question is if they won't pay more, are you prepared to let sale fall through for £3k?0 -
If this is the best offer you have received in 6 months there is a good chance it is a fair one.
The EA will not be 'working for the buyer', they are working to get a sale. They quite rightly would have concerns that the buyer will not be able to raise the necessary finance to bridge the gap the mortgage bank refuses to lend over. They don't know (unless the buyer is a bit talkative) how much, if any, more money the buyer has, although clearly they have a little more if their offer has not been cut proportionately.
Sounds like an ok offer to me, I'd take it for the sake of a couple of k.1 -
Take it and move on - the next valuation might come in lower.0
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Accept, accept, accept, quick.
As a buyer I would pay over the valuation, you are really lucky.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
0 -
The seller overpriced the property and the buyer's negotiation skills were not quite good enough to get the price down. Splitting the difference seems reasonable in the circumstances. So another +1 for acceptance.0
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How much do you need/want to move? If you're not too bothered, stick at £120 and se if the buyer has the extra in his pocket AND the will to spend it. Remember he's already paid out on mortage application fee, survey, maybe legal fees.... so if he walks away he's more out of pocket than you.
But be prepared for the sale to fall through, and the house price to drop further (OK, maybe it'll rise..........)
A lot of this is gamesmanship, but depends how much the buyer/seller need the deal.0
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