How do sellers normally respond to low valuations?

fairouzeh

pleasedelete wrote: »

Is it a builder selling?

Yup - they are a small developer that has done up an old country house and added cottages in the grounds. There are 3 other houses in the main house that sold already. 2 for asking price and the other only a whisker away from it.

The cottages aren't selling so well though.

I don't know what will play in our favour. I hear it they are more likely to be flexible than bigger developers.

Did I mention it was on the market for 600k to start with?

fairouzeh

pleasedelete wrote: »

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.

Seriously? I'd never thought of that at all. Sucks for people whose house are worth more than 500k but great for bargain hunters (with a bit more money than we have )

pleasedelete

So whatever you buy at will set the ceiling price for any remaining similar houses.

Hard to guess which way it will go. They might accept your lower offer if they need the money now but if they do the risk devaluing further houses.

fairouzeh

Correct! I guess I'll just have to give it a go and see what happens.

Nothing ventured, nothing gained!

If this one falls through I'll see if we can muster up an extra 25k to go for a real bargain. There are always other houses out there, right?! No point in overpaying.

Thanks again pleasedelete. Incredibly helpful feedback.

fairouzeh

dodozg wrote: »

OK, whatever you take ...............................

Hhhhmmmm????

timmyt

The surveyor is irrelevant, what counts is what valuation your lender gives and therefore the amount they will loan you.

Jessikita1983

£475k?? What area is this? I can only dream of owning a property of that value! Never on my measley £30k a year salary! I will get there one day hopefully! xxx

missile

It could be the valuation is low? It is not written in stone, someone else may value it at £475K or more.

jocushing

We had the same problem when we remortgaged. It was 40k under.
Ridiculous.

I found out that there had been a recent case where a surveyor had over valued a house so they were sued successfully. So surveyors are scared that they might over value.

Obviously we know the area and knew how much the house was worth and didn't agree. So we appealed the valuation decision. It was easy you send in details of 3 similar properties in the area and their selling price. They matched the price no problem

fairouzeh

jocushing wrote: »

We had the same problem when we remortgaged. It was 40k under.
Ridiculous.

I found out that there had been a recent case where a surveyor had over valued a house so they were sued successfully. So surveyors are scared that they might over value.

Obviously we know the area and knew how much the house was worth and didn't agree. So we appealed the valuation decision. It was easy you send in details of 3 similar properties in the area and their selling price. They matched the price no problem

We just remortgaged a rental property we have and it was also undervalued by 20k. We had proof that similar properties in the rural area it is in sold for substantially more than the amount we were saying for the remortgage (just needed to release a little capital). They told us that the properties have to be within a 1 mile radius to be applicable. Given the rural location they were 1.5 and 2 miles away so the appeal failed. Madness but hey ho... it seems like undervaluing is the norm now (in our area anyway).

Annoying in a remortgage situation but potentially beneficial for buying, if I can make it work in our favour anyway.