Valuation report - Please help?!

ellenlh

Me and my boyfriend have applied for a new build home up for sale at £149,995. We passed the decision in principle and everything seemed ok, however halifax have sent someone out to value the property and they have come back with £130,000! Now Britannia (the company we are buying a house from) have got lots of evidence to show houses in this area can sell for that amount of money.

Do you think I should worry? I would just like abit of advice

Thanks

opinions4u

Change your offer to £130k or buy somewhere else.

ellenlh

It's a new build though, they are at a set price

kingstreet

Comparable evidence of similar sales can be submitted to the surveyor who may change his mind as a result. I have my doubts he will, given the large difference.

The builders will doubtless pressure you to apply to another lender for another mortgage, perhaps with the same end result, perhaps with it valuing up. Who knows?

It's your call whether you continue. The surveyor is trying to tell you something. It's up to you from there...

pinkteapot

ellenlh wrote: »

It's a new build though, they are at a set price

Who told you that? One of my friends bought a new-build which started out at an asking price of £250k for £168k!

If you want to proceed with the sale at £150k and the mortgage company only values it at £130k, you will need to put more cash in as a deposit. Suppose you had been planning to put down £15k and take out a 90% mortgage. The mortgage company will only lend you 90% of their valuation, i.e. £117k and you would have to put down a £33k deposit. That's the real problem it causes.

mp80

Offer 130, walk away if they decline, negative equity beckons.

Wh05apk

:rotfl::rotfl:

ellenlh wrote: »

It's a new build though, they are at a set price

:rotfl::rotfl:

Lenders/valuers are being harsh, but this is a massive difference, from your comment I suspect you have not even tried to haggle? you should look at sites such as Zoopla/Ourproperty to try to see what similar properties have actually sold for and use that as a guide.

As has been said, I would be looking at going back, saying it has been valued at £130k and that is what you will pay, see what their reaction is, if you go to another lender you may get the same valuer again, no doubt they will push you to use their mortgage "advisor" who may be able to persuade the valuer to increase the valuation, but be careful, is that what you really want to get a possibly false valuation so you can pay £150k for a £130k house, if you do, you could very soon find yourself on negative equity.

_Andy_

ellenlh wrote: »

It's a new build though, they are at a set price

one born every minute

DannyboyMidlands

ellenlh wrote: »

It's a new build though, they are at a set price

And you believed this? Come on.

Anyway, you've had a lucky escape and owe the surveyor a drink. He's saved you over-paying by 20 grand.

Reduce your offer to 130k and not a penny more. Say that you can't get the mortgage otherwise. You will then see how "fixed" the price is. What's the betting that they'll do a special deal, just this once, just for you?

Morgage_Confused

Next the builders will show you how others on the site have sold for £150,000....dont believe a word of it.

firsttimetom

Morgage_Confused wrote: »

Next the builders will show you how others on the site have sold for £150,000....dont believe a word of it.

Yes, DO NOT belive them if they tell you they have sold for asking price. We looked at a couple of houses and some flats in a new development up by us in 2008. The flats had an asking price of £119,950. I've just looked and out of the 12 flats, 2 paid the asking price, 1 paid £115k, 1 paid £112k, all the rest paid under £110k, including one person who paid £99,950.