2 Low Mortgage Valuations. What next??

fairouzeh

We offered £475k for a house on the market for £600k. They accepted the offer (woo hoo!!) but when we had it valued the surveyor came back saying he thinks it is worth £450k. We've had another valuation and again we've been told £450k. My bf is convinced the sale is going to fall through now but I really want to make it work.

Any advice on how to deal with the seller?

Its a beautiful house in a beautiful location but I don't want to pay more than its worth and honestly we are already putting 30% down and can't afford to put any more than that.

garth549

Simple. Tell them the house has only been valued at £450k and that's what your 'revised' offer is.

If they refuse they will just have the same problem with the next buyers so it would be foolish.

dimbo61

Tell the owner via the estate agent that 2 valuations have come back at £450 so thats your offer and see what happens.
You can even provide a copy of the valuations to the estate agent
Its a buyers market

fairouzeh

Thank you Garth549 & Dimbo61.

I know it probably seems so simple - but when you're wrapped up it all, under pressure from the estate agents, its hard to take a step back and just say 'its this or nothing'.

I'll try it and see how it goes.

Is it better for me to talk to the estate agents or have my solicitor do it for me via their solicitors?

Senior_Paper_Monitor

Its free to tell the estate agent the facts of life.

Instructing a solicitor to tell a solicitor to tell someone else isn't !


.... and incidentally, give them your revised offer (the estate agent is legally required to pass it on)

GAH

Hi OP,

You need to talk to the Estate Agents yourself.

The good thing is you have two pieces of evidence from professionals stating the value at £450k.

It sounds as though the vendors were flying kites marketing the property at 600k in the first place.

Of course, if you make a revised offer of £450k, the owner does not have to accept this, but they would be foolish not to.

Or Alternatively, you make a revised offer over £450k, but you will have to make up the difference.

The Agents aren't going to want to lose a sale, so stay strong.

fairouzeh

Good point GAH - I think I need to work with the estate agents to try and make this sale work. Its in their interest too. I would normally say 'what is 25k to a developer', but they originally listed the property 150k more than it has been valued. Ambitious or deluded?!

The question is will they accept 25k less after already accepting a 125k drop in the price. Thats alotta money!

Thrugelmir

fairouzeh wrote: »

The question is will they accept 25k less after already accepting a 125k drop in the price. Thats alotta money!

To a developer cash getting cash in the bank is the key.

The current value merely reflects the amount of profit in the build, and how overvalued property has become in recent years.

fairouzeh

You're right Thrugelmir... cash in hand is often paramount

I didn't mention that there are a few other houses nearby by the same developer that have gone back on the market months after being sale agreed (completely different type of house I hasten to add!). I'm not sure why, but I'm hoping that will play in our favour and they'll see the benefit in accepting what the valuers say.

poppy10_2

fairouzeh wrote: »

there are a few other houses nearby by the same developer that have gone back on the market months after being sale agreed (completely different type of house I hasten to add!). I'm not sure why

Probably for the same reason - sales being agreed at inflated values, and then halted when the bank arranges its own survey and finds the property is worth far less than the agreed price.

Tell your vendor to drop the price or walka way - any potential future buyers will face the same issue with the valuation so it's not like they will get a better offer.

fairouzeh

poppy10 wrote: »

Tell your vendor to drop the price or walka way - any potential future buyers will face the same issue with the valuation so it's not like they will get a better offer.

Thats what I keep saying to myself poppy but then others tell me that it may well sell for way more than that valuation because of cash buyers, or people with way more than a 30% deposit.