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Developer overpriced? Or mortgage valuation under?
emmaluggs
Posts: 1 Newbie
Hello I know there are many posts like this but I'm looking for anyone who actually walked away and then received an offer from the developer.
Heres the story........
We had a mortgage agreed with Santander, they went out valued the property at 20k less than asking. Developer refused to budge and sent on some comparable properties, 2 the exact same as ours and went for the asking, the 3rd property is of similar standard and similar price. Santander refused to take these into consideration. Developer offered to pay for a second survey. Second survey was done last week he valued it at 15k less.
Developer is still refusing to budge on the asking price, "our" (just not sure he is on our side) mortgage adviser is trying to push us down the shared equity route where we borrow 10% from the developer and pay it back over 10 years. Now I feel like i'm being swindled, as quite clearly the house isn't worth it.....or is it? On face the other properties that sold for the asking price doesn't necesarily mean that they were valued as they could have had the cash themselves and bought for the asking price. My partner wants to go ahead with this deal, but I want to risk walking away and them coming back with a deal?
They won't even take off the gifted deposit of 12.5k of the value and we're willing to stump up the extra 2.5 to get our dream home, it just seems like they are trying to artifically inflate the house prices.
Sorry for the rambling post I have so many thoughts going through my head!
Heres the story........
We had a mortgage agreed with Santander, they went out valued the property at 20k less than asking. Developer refused to budge and sent on some comparable properties, 2 the exact same as ours and went for the asking, the 3rd property is of similar standard and similar price. Santander refused to take these into consideration. Developer offered to pay for a second survey. Second survey was done last week he valued it at 15k less.
Developer is still refusing to budge on the asking price, "our" (just not sure he is on our side) mortgage adviser is trying to push us down the shared equity route where we borrow 10% from the developer and pay it back over 10 years. Now I feel like i'm being swindled, as quite clearly the house isn't worth it.....or is it? On face the other properties that sold for the asking price doesn't necesarily mean that they were valued as they could have had the cash themselves and bought for the asking price. My partner wants to go ahead with this deal, but I want to risk walking away and them coming back with a deal?
They won't even take off the gifted deposit of 12.5k of the value and we're willing to stump up the extra 2.5 to get our dream home, it just seems like they are trying to artifically inflate the house prices.
Sorry for the rambling post I have so many thoughts going through my head!
0
Comments
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Developer overpriced: Every time.. "Developers" (builders..) have been pulling this con for years 'n years, ..
"Gifted deposit"?? A con ..
Sorry - cheers!0 -
Is the mortgage advisor someone you sourced through the developers?
Also, bear in mind that the 'sale' price for the other houses probably included lots of extras which wouldn't be included in resale price, such as turfing the lawn or new appliances ...0 -
Just walk. There's a big premium that you pay for new properties compared to secondhand. The lenders now insist the surveyors make their valuation on the basis of secondhand, because if they have to repossess that's what they'll have as security, ie a secondhand property. Personally, I wouldn't dream of paying the premium for a new property, as you lose so much when you come to resell.
Just walk away and find yourself an older property that's better VFM.
.No reliance should be placed on the above! Absolutely none, do you hear?0 -
The property simply isn't worth it.... Convince the developer you intend to walk away and he may budge but don't pay a penny more than the mortgagees valuation!!
Tis a game for the developer they come across this sort of thing every day. They know that if you walk the next person that comes along will run up against the very same problems. In the meantime they will play it to the wire to get as much money out of you as possible. If they are convinced you intend to walk then you may get some latitude from them.
Did I mention not to pay a penny more than the valuation? Don't let your heart rule this. Its business!!0
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