How do sellers normally respond to low valuations?

fairouzeh

We're trying to buy a house and the valuation has come in lower than what we offered.by 25k

Is anyone out there (who is an estate agent or involved in selling houses) able to tell me how things often work in this situation?

I am trying to figure out if standing firm at the valuation amount will work, or if walking away (in the hope they panic and follow) works.

Many thanks!

GAH

Vendors are always going to be reluctant as they want the most for their home.

Im an ex-agent, and have seen many sceanrios happen.

If you still want to purchase the property, make your ammended offer to the agent, and they will try and re-negotiate with the owner.

The owner may accept and say yes, or they may reject, it will then be up to you to make up the difference if you want to pay.

Theres no point in saying you will walk away unless you really are going to walk away.

At the end of the day, im sure the agent will try and keep the deal together, otherwise they don't earn anything, and its more than likely the same thing would happen again if they had to find another buyer.

lincroft1710

Each case will be different. It will depend of the desperation of the vendor and prospective buyer. How desperate is the vendor to sell or how desperate is the vendor to achieve the previously agreed selling price. How desperate is the prospective purchaser to buy this house or how desperate is the pp not to buy a house worth less he believed.

Negotiation is always the best policy.

pleasedelete

25 k on how much?

On £1 mill just accept it.

On £100 k probably mean they cant afford to move.

fairouzeh

pleasedelete wrote: »

25 k on how much?

On £1 mill just accept it.

On £100 k probably mean they cant afford to move.

Its valued at 450k when we offered 475k. A big enough different to us to mean its not possible to go ahead with that house.

No idea how desperate the vendors are... hard to say really!

pleasedelete

Did they say why the value was low?

I wonder if it was affected by the 500k problem. Because of the stamp duty a house has to be worth/marketed at a lot more than 500k to get over 500k. So for 500k you get a great range of houses as those marketed at up to 540k ish all often drop to £500k.

I wonder if your 475k seemed poor value compared to what has sold in the area for £500k.

Can you afford 500k ? You will probably get a lot more for your money.

Caveat_Mortgagor

The first two stages are:-

1. Denial
2. Anger

fairouzeh

pleasedelete wrote: »

Did they say why the value was low?

I wonder if it was affected by the 500k problem. Because of the stamp duty a house has to be worth/marketed at a lot more than 500k to get over 500k. So for 500k you get a great range of houses as those marketed at up to 540k ish all often drop to £500k.

I wonder if your 475k seemed poor value compared to what has sold in the area for £500k.

Can you afford 500k ? You will probably get a lot more for your money.

Unfortunately we really can't afford to go up to 500k without seriously impacting our lifestyle, or borrowing from family members.

I'd never thought of it that way though. Very good point!!

fairouzeh

Oh and I forgot to say that they haven't given an explanation as to why its that low. Well they did say that similar 3 bed houses in the area sell of between 375 and 450k.

However... the house next door by the same developer (that is twice the size but only has 3 proper bedrooms and a loft) sold for a staggering £950k (full asking price).

I don't think there is another 3 bed house in the area that sold for anywhere near that price!

pleasedelete

Just looked at my area. There are 53 houses on the land registry at £500k then only 9 between £500k and £530k with only 3 between 500k and £518 k.

pleasedelete

Is it a builder selling?