2 Low Mortgage Valuations. What next??

poppy10_2

fairouzeh wrote: »

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.

How many cash buyers or people with a 30% deposit do you know? Even if they have a spare £475,000 lying around in a bank account waiting to be spent on a house, the chances are that they would not want to waste their money by overpaying for the property.

Who are these people that keep telling you it will sell for "way more"? The vendor's estate agent?

fairouzeh

poppy10 wrote: »

Who are these people that keep telling you it will sell for "way more"? The vendor's estate agent?

Actually not the estate agents who are keeping pretty silent right now. Mainly people on the other forums I've posted on today to ask similar questions. A recurrent them has been that the house is worth whatever that person thinks its worth, and there may well be someone out there who will pay a premium for the location, style of house etc.

While I don't realistically think that is this case, I get a niggling worry that it could be true. Maybe there are people out there who wouldn't care if the valuation was low, if they can afford the place!

poppy10_2

fairouzeh wrote: »

A recurrent them has been that the house is worth whatever that person thinks its worth

That's a bit of a tired old meme, tbh. If I have some 'magic beans' for sale, and find someone who is willing to pay me £500,000 for them, would you really argue that the beans are really worth £500k?
Houses do have an objective value, which is important when it comes to buying them with someone else's money via a mortgage, or when it comes to trying to sell them on to someone else when you want to move on - unless you can find a 'greater fool' who is willing to buy the magic beans from you from the price you were expecting, the beans are not worth whatever you thought they were worth.

there may well be someone out there who will pay a premium for the location, style of house etc.

The location and the style of the house all taken into account when the valuation is done. The valuation you got was based on the house being in the location and the style that it is.

Mainly people on the other forums I've posted on today

Looks like one of those forums was Yahoo Answers. Yahoo Answers is full of morons - it's the last place you should be looking for financial advice on a potential transaction worth nearly half a million pounds.

fairouzeh

poppy10 wrote: »

Looks like one of those forums was Yahoo Answers. URLremoved - it's the last place you should be looking for financial advice on a potential transaction worth nearly half a million pounds.

Fair point but I disagree - any forum brings up issues worth contemplating, even if the suggestions turn our to be BS. I've learnt alot today from various sources, the informed and misinformed alike!

fairouzeh

I posted this thread a couple of weeks ago and thought it would be a good idea to add a post on the outcome.

After a couple of weeks of going back and forth with the sellers, who refused to believe that we were telling the truth about the valuations, they finally accepted our reduced offer and we got if for the valuation price. We had to provide them with copies of the valuations and even then they didn't seem to believe it.

They did however put it back on the market until we exchanged which really annoyed me but no-one came forward in that time. Phew!

Annisele

Excellent news.

Shows (one of the many) benefits of having a survey - they've saved you £25k, less the amount they cost, plus the interest you'd have had to pay on the extra borrowing over the term.

pinkteapot

Congratulations Since you had two separate valuations (not just one) it was going to be hard for them to argue.

And you saved yourself £25k - well worth paying for the valuations.

Thrugelmir

fairouzeh wrote: »

We had to provide them with copies of the valuations and even then they didn't seem to believe it.

That was their "profit" evapourating.......... so unlikely that it would given up without a fight.

fairouzeh

It just goes to show - people often are hesitant to pay for valuations or proper surveys. Those few hundred extra pounds we paid for the second one (actually more like £500) saved us £25k + as Annisele points out, all the interest that would have come with that. Result!

Some of our new neighbours bought their house a few months before ours and didn't get a survey. 6 months later they haven't moved in because of extensive damp issues. They paid £700k for theirs (its an amazing house!) but didn't want to pay for a survey. They now have thousands and thousands of pounds of remedial works to pay for and nobody to blame but themselves!

fairouzeh

I just realised that last post sounded smug which wasn't the intended tone! Reassured is more like it - after initially wondering why we would fork out that extra money for another valuation.