2 low valuations on dream house!

Zoe-Chloe71

Hi - we've been renting for 18 months, sitting on our deposit, and finally a house we loved came up. It was on the market at £169,000, they (eventually) accepted an offer on £162,000 from us. In the first week of being on the market they had lots of viewings, but no firm offers. We thought we'd got a great deal on a big 4 bed family home with a fabulous garden. Then the valuation came in at £125,000. Everyone shocked. We contested it, the surveyor wouldn't budge. It seemed really odd (we've been keeping a close eye on sold prices in the area), and so the lender agreed to a second opinion (at our expense). Another valuer (from an entirely different firm) has just valued it at 140,000, going to 145,000 if certain work is carried out on the property. We are waiting for the report to see what this is and what his reasons are. The vendor has said she can't drop the price, despite being in a hurry to move. The estate agent says he has another couple who've offered £165,000 plus lots of interest in the property (I realise he would say this). Don't know what to do. Of course we could try another lender, fork out another £300 for valuation and get no better result. Help!!

_Andy_

Why on earth would you want to 'contest' it and pay more than what its worth?

_Andy_

PS your estate agent is talking a load of crap

TonyMMM

Well anyone else who needs a mortgage is going to have the same issue - this is the sellers problem not yours... if you really want it, offer at 140k (max) and if they don't take it, find another property.

I would have stuck at 125k myself .... why try and force the price up - you are the buyer ???

Senior_Paper_Monitor

You offered £162,000 but the lender won't let you pay that much

I suspect that whoever (if they exist) has offered £165,000 will hit the same obstacle

System

I would personally pull out because it sounds like you are overpaying. Ignore the estate agent. As TonyMMM says, you could always offer 140k.

If the valuation comes out to be 140k then you are landing yourself straight into negative equity if you pay 162k (unless you have a very large deposit of course).

Zoe-Chloe71

I contested because it seemed unreasonably low compared to other recent sold prices that I knew of close by.

I do know that estate agents will say anything! This one can manage to contradict himself in the same sentence. He at first agreed with me that surely anyone else will have the same problem, then said I'd just been 'unlucky'.

Zoe-Chloe71

Also we have a fairly modest deposit, and I wouldn't risk negative equity. Which means I suppose we are only left with offering the £140,000, and pulling out if they turn it down. Just feel that the same might happen to another buyer and then vendor will see sense, drop the price for them...

sarahmtly

What did the surveyors report say ? Is there any hidden troubles that reduce the house price ? Sounds a bit dodgy and maybe in the long run your better off without it.

Thrugelmir

Zoe-Chloe71 wrote: »

I contested because it seemed unreasonably low compared to other recent sold prices that I knew of close by.

The surveyor is representing the lender, and will value in accordance with the instructions given.

Zoe-Chloe71

Still waiting for 2nd report (sent out by post). The lender wouldn't show us the 1st (free) valuation, as it was for their benefit (still don't see why I couldn't see it), but they said the down valuation was due to 'future marketability' , having no off road parking, and he did recommend a damp and timber report (exactly the same came up on my last purchase so we negotiated with the seller the cost of a damp course). It does seem a bit baffling that there is such a big difference in the 2 valuations. It all seems pretty subjective. I don't value off road parking, for example....