Refresh Valuation £10k Lower

shebanjoed

House originally on market for o/o £150k on 27th April 2011 with a home report valuation of £165k. Its an old property and needs upgrading work (electricals/front door rotted/windows need replaced/needs a kitchen) and sellers wanted a quick sale so they lowered it to o/o £140k.

We offered 2 weeks ago £142k which they accepted. With our deposit the mortgage will be £127k. A refresh valuation yesterday came in at £155k. Quite a drop for 3 months.

Halifax had asked for the refresh and we are waiting for mortgage application to be approved.

Will this have an impact on our application?

Have we now offered too much? At an original value of £165k I thought it was a great bargain due to the amount of work needing done.

Thanks.

somethingcorporate

Home valuation report will not count for anything. For mortgage purposes the 100% value of the house is the lower of purchase price or valuation.

You realise you offered over asking price? I'd have started at £115-120k and gone from there. You have probably cost yourself a good few grand with that offer and I am sure the vendors snapped your hand off at that price.

Caveat_Mortgagor

shebanjoed wrote: »

sellers wanted a quick sale so ..........o/o £140k.

Ok, motivated seller this sounds interesting. In a market where many alleged vendors are hiding from reality and pricing to stay on the market, it sounds like these people want to sell. I sense there is a deal to be made here.

shebanjoed wrote: »

We offered 2 weeks ago £142k which they accepted.

Noooooooooo. You didnt!?!? You didnt!!! Please tell me you didnt!

shebanjoed wrote: »

Have we now offered too much?

Yes.

But, maybe its not too late. Your vendors are still in the same position. They want to sell. Maybe the valuation has saved you from making an expensive mistake.

I would definitely revise your offer to reflect the valuation. Dont be afraid to pile the pressure on by walking away if you need to.

Good luck.

googler

shebanjoed wrote: »

House originally on market for o/o £150k on 27th April 2011 with a home report valuation of £165k. Its an old property and needs upgrading work (electricals/front door rotted/windows need replaced/needs a kitchen) and sellers wanted a quick sale so they lowered it to o/o £140k.

We offered 2 weeks ago £142k which they accepted. With our deposit the mortgage will be £127k. A refresh valuation yesterday came in at £155k. Quite a drop for 3 months.

Halifax had asked for the refresh and we are waiting for mortgage application to be approved.

Will this have an impact on our application?

Have we now offered too much? At an original value of £165k I thought it was a great bargain due to the amount of work needing done.

Whether it affects your app depends on your mort co., but you're offering/paying £142k for a house that a surveyor has valued (for mortgage lending purposes) at £155k IN ITS CURRENT CONDITION - therefore, your allowance for repair and refurb is £13k.

Your solicitor should advise whether or not you revise your offer - what is their advice? You're paying them, ask them!

Probably best to take with a pinch of salt any horrified posters from E&W who aren't familiar with the Scottish Offers Over tradition....

somethingcorporate

How did you work out it was in Scotland??

Doozergirl

Home report valuation. Only the Scottish have those, plus the valuation is more than the offer price still. Doesn't happen in E&W.

Some people haven't read the OP properly. It clearly says the valuation is higher than the offer, so to revise the offer to reflect valuation they would have to increase it!

shebanjoed

Just waiting on lawyer calling me back for his take on it.

There are 6 executors selling the house. For the area I am buying in (G64) and the property (semi detached, 3 bed, floored attic and garage) it is a good deal and I will make money on it. Was extremely happy at £165k. Not so extremely at £155k.

googler

somethingcorporate wrote: »

How did you work out it was in Scotland??

The OP is referring to the Home Report.

HIPs were abandoned in E&W, Home Reports are part of buying and selling in Scotland.

googler

shebanjoed wrote: »

Just waiting on lawyer calling me back for his take on it.

There are 6 executors selling the house. For the area I am buying in (G64) and the property (semi detached, 3 bed, floored attic and garage) it is a good deal and I will make money on it. Was extremely happy at £165k. Not so extremely at £155k.

So you're looking to refurb and sell again quickly...?

somethingcorporate

Thanks, sorry for any confusion, I did not make the distinction it was in Scotland.

shebanjoed

My intention is not to do it up quickly and sell it on, I intend doing the refurb when I have the cash available. Probably take me years.

What on earth was the surveyor thinking valuing at £165k then 3 months later he/she refreshes the amount to £155k? If I was the seller I'd be questioning the surveyor. I feel like I've been duped. Still waiting for the lawyer's take on it.