Valuation of property is less than my accepted offer.

ukcarper

I would negotiate but the valuation figure is not the actual value, just someone’s estimate. You shouldn’t have to find the £1.5k for instance if you are putting down a 20% deposit you would need to find an extra £1.3k. Depending on your lenders deposit requirements you might still be able to borrow enough but you would need to check what effect that would have on your interest rate.

779

Exactly the same thing happened to me, - although the valuation was £13,000 less.

I asked the vendor to accept the reduction or I'll walk. He accepted.

phoebe1989seb

TOOTHACHE wrote: »

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.

Slightly off-topic, but sounds like the same surveyor who carried out the Homebuyers' Report on the house we sold this year (in Essex!) - he said we had an asbestos water cylinder - we didn't and that our attic was infested with woodworm - three old (treated) holes found when our buyer inspected it himself :mad: Luckily the valuation was spot on though and our buyers didn't negotiate us down on the price at all!

Whirlee

I'm a FTB and I asked my mortgage advisor about this exact situation just in case it happens to me (there have been no sales in that area for two years so I imagine it will be difficult to accurately value the property).

He said you should try to negotiate the price down, because they would only lend based on the value in the valuation and if you want to pay over the odds, then it would have to be a separate cash payment direct to the vendor.

smudge2013

Thanks for all your advice everyone.

Idiophreak

I had a really uber-aggressive downvaluation - *many* thousands under the valuation. (I can only assumer the valuer was on crack at the time) We negotiated and eventually agreed on a price a little above the valuation. I felt a little bad for the vendor, really...but thankfully for them the valuations for the rest of the properties on site were more realistic...

propertyman

zappahey wrote: »

What does this mean?

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.

That the valuers figure is within an acceptable degree of deviation.

Not at all. The valuation figure is based in part on the "average buyer" in simple terms. The issue is therefore what the buyer is prepared to pay as opposed to what they can borrow or finance.
The former is based on a number of personal and intangible elements.

The number that really matters is the other offers or any change in local values demand or circumstances since the sale was agreed.

If the next guy is interested and his offer was £500 less....

propertyman

Whirlee wrote: »

I'm a FTB and I asked my mortgage advisor about this exact situation just in case it happens to me (there have been no sales in that area for two years so I imagine it will be difficult to accurately value the property).

He said you should try to negotiate the price down, because they would only lend based on the value in the valuation and if you want to pay over the odds, then it would have to be a separate cash payment direct to the vendor.

Your starting position is comparables but local knowledge is invaluable.

poppysarah

Idiophreak wrote: »

I had a really uber-aggressive downvaluation - *many* thousands under the valuation. (I can only assumer the valuer was on crack at the time) We negotiated and eventually agreed on a price a little above the valuation. I felt a little bad for the vendor, really...but thankfully for them the valuations for the rest of the properties on site were more realistic...

That's strikes me as insane.

Wanting to pay more than someone's valued it at.

And that's the less biased value than the one from the person trying to sell it to you.

wackorash84

jamesl85 wrote: »

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.

Don't be too worried or feeling guilty. You do not want to end up with a house that you over paid in this market.

Also, I would suggest you wait for the full building survey before you start negotiation. You don't want to agree on a new lower price only to find out that there are further issues and start negotiations again.

Good luck!!