Valuation of property is less than my accepted offer.

smudge2013

Hello, I'm a first time buyer and recently had an offer accepted of 134500 on a 1 bed flat, down from asking price of 136000. I've received my valuation in a homebuyers report, and it has come back with a valuation of £132995. Not much has been flagged up in the report, just that boiler needs a service.

Is it acceptable to now try and renegotiate the price based on a lower valuation? Or would this be unfair to the vendor and be potentially damaging to relations at a late stage to try and haggle after agreeing price already?

Thanks, James.

Gwhiz

jamesl85 wrote: »

Hello, I'm a first time buyer and recently had an offer accepted of 134500 on a 1 bed flat, down from asking price of 136000. I've received my valuation in a homebuyers report, and it has come back with a valuation of £132995. Not much has been flagged up in the report, just that boiler needs a service.

Is it acceptable to now try and renegotiate the price based on a lower valuation? Or would this be unfair to the vendor and be potentially damaging to relations at a late stage to try and haggle after agreeing price already?

Thanks, James.

Negotiate. Would it be fair to you to pay over what it's worth? Also..won't your mortgage lender reduce the amount you can now borrow (assuming you need a mortgage)

poppysarah

jamesl85 wrote: »

Or would this be unfair to the vendor and be potentially damaging to relations at a late stage to try and haggle after agreeing price already?

Thanks, James.

It would be unfair to you not to.

Egg_custard_2

I also agree you should not pay above the valuation. The vendors will find it very difficult to find anyone else prepared to exceed it either so they have little choice, and can hardly blame you. As previous reply said, this will restrict how much mortgage you can take out.

pararct

You should try and negotiate the price you are paying down. The vendor although does not have to agree to a reduction. This is where is pays to keep your cards close to your chest in that if you emphasise your mortgage offer has beed reduced and can no longer afford the higher price even if you don't need a mortgage.

I must say that is a high price for a one bedroom flat these days. I am assuming it is in the London postcodes close to good transport links? Probably the only place that can command such prices!

InkZ

I would be very firm about this and offer the valuation.

propertyman

Ahh we hear so much about gazumping and here is the evil twin

the late survey leading to a gazunder.

By all means negotiate however bear in mind

a: an acceptable level of variation for negligence in most cases is 10 %, so the difference is within a few %.

b; valuation is part science part art, the report is largely for security purposes of the lender and for you.

It cannot not take into account the factors that make your offer the winning one; near the school or work, you like the colour schemes and fittings and plan to do very little, while I offered lower as I hate those carpets etc.

smudge2013

Thanks everyone for responses so far. The flat is in a commuter town 30miles outside London, so thats why its a high price for just a 1 bed flat. Its bit annoying but is a nice area. I'm leaning towards going back to estate agents asking for them to match the valuation. I imagine its likely my mortgage company would only lend to me based on the valuation, so I'd need to find the extra £1500 if i stuck to my offer price. I just feel a little guilty for 'gazundering' but I guess it seems wrong to pay more than its actual value.

zappahey

propertyman wrote: »

a: an acceptable level of variation for negligence in most cases is 10 %, so the difference is within a few %..

What does this mean?

propertyman wrote: »

b; valuation is part science part art, the report is largely for security purposes of the lender and for you.

That may be so, but it is pretty definitive when it comes to the amount a lender will lend and, typically, how much a buyer can pay. In other words, it's the only number that matters.

TOOTHACHE

we paid £290k for a 5 bed house in east hants, mortgage surveyor #1 said £265k.
he was talking out of his backside..... he came all the way from essex.
said the house was 'probably' full of asbestos (artex, insulation etc..) - we had it checked at out cost by asbestos professionals and nothing, said the garage roof was infested with wood worm, dad checked it out - old worm, long dead, all treated.
said that similar houses in the area were only in the region of £265k.
the only similar houses in the region are 4/5 bed newbuilds completed 3yrs ago when the owners paid through the nose and now that the mortgage deal has ended are struggling to keep the house - plus, they are built on well known 'boggy land' next to a water treatment plant.
these same newbuilds were originally sold for £315k + and they just aren't selling.
I guess what I am saying is there is only so much a surveyor can do, they cant poke about too much, they may not even live local and know the housing stock.
no doubt you have done plenty of right move research, we did for over a year, so you know whats what.
I have also heard stories of mortgage valutaions coming in low to help them out just in case they have to do a repo, covers their back.
our second valuation came in at £285k so you can see the difference and the house had plenty of interest and offers from other parties around the £280-290k mark, just that we were in a position to move asap.

sugarwalsh

Offer the lower - emphasise that the mortgage lenders will only match the amount and that you don't have the extra. It's hardly a million miles from the original price anyway.

Why help line someone elses pocket? I know that sounds harsh, but £1500 will go well towards your replaement boiler,.

Good luck,
Megan