Closing date- how likely someone will go over home report value?

Caleb11

Hi

I'm fairly new here & I am a first time buyer. I don't know a lot about the whole house buying game and just learning as I go along. So a quick update is that Ive seen a house I really like. It's a repossession with 5 notes of interest. They have got a closing date for tomorrow. I really like the house and really want it.

It's on for offer over £69k and valued at 75k. Needs a little bit of work & the same house is up for £100k couple of months ago. I have no idea what to to offer. I can go Upto £76k but that means saving everything I don't need to spend for the next 2 months to build deposit up as I'm puting down 15%. I've been advised not to go over home report value by my mortgage advisor so I was going to go in at 75k. But I'd hate to loose out over £1k incase someone Does go a bit over. I don't know if this is 'the done thing' or if no one would go over home report value. I don't know what to expect. I should mention I'm in Scotland btw. Any advice?

Thank you

tsunami70

Hi caleb, I'd be surprised if anyone went over the homereport valuation on any property nowadays due to supply outstripping demand (in most places anyway) and that the property will be valued for the lender and they won't pay out over that valuation.

I'm a little confused as to why it was up for sale at £100k a few months ago, and is now valued at £75k - has something bad happened to it?

If it's not been valued at £75k and just reduced from £100k for a quick sale then you'll have some wiggle room with the mortgage valuation report figure and could bid a little more to ensure you get it.

Just go in as close to the figure as you feel comfortable with, and if you end up losing out don't worry as there are plenty more houses out there and no need to overstretch yourself.

Good luck!

Caleb11

Thanks for that, sorry i worded it wrong i meant that a house on the street which has the same number of bedrooms ect was up for 100k so it has potential to be worth more in a few years once we have done the repairs ect. Thanks im really nervous! this is the first house ive really wanted. i think ill go in at 75k

googler

I think you stick to your guns at £75k

They may have 5 notes, but there's no guarantee all or any of them will bid at closing. You may be the only one who offers.

Caleb11

Thanks everyone for your replies. I've went in at 76k for the closing date at 12 oclovk only because I really want this place and I know that's the most I can offer so if I don't get it that's fine. If I went in at 75k and missed out over a couple of hundred pounds id have been kicking myself. I could hardly sleep last night thinking about it. I really hope I get it I know there's a lot of interest though so I'm prepared if not. Fingers crossed! Thanks again for all your help.

googler

Keep us posted.

bobula

depends where you live

ive been to closing date twice in the north east scotland on houses mind - one wnt for 80k over valuation ......

the other went 15k over valuation

so when i had the chance of a house i wanted for 5k over before closing i jumped on it !

if your in the north of england then i wouldnt be going above for sure.

The other thing in the north east is there is an abundance of flats - alot of folk are getting rid of their BTL so flats are going cheap cheap like the budgie compared to houses so i wouldnt rush in the same on a flat

good luck ! - golden rules , offer what you think its worth to you not less and what you can afford not more

Caleb11

Bobula- do u remember roughly how long it took for you to hear back after the closing time? Was it the same day?

bobula

about 45 minutes both times

dont sweat it - if it was meant to be its meant to be , dont get bidders fever !

pokey128

We just bought in a similar situation. It went to a closing date and my husband was away and told me not to bid over the valuation. I was totally stressing about it and ended up going a couple of hundred over for the same reasons as you - I would have been gutted if we lost by a small margin when we could have afforded more.

Anyway, we "won" and were told it was by a very small margin. Since we have moved and speaking to the sellers we found out that 2 out of the 4 offers were over the valuation so we just got it and no more!

Very happy with what we paid and since then 3 similar places have sold for more in the same area.

I think what you pay depends on how long you plan on staying somewhere.

Fingers crossed for you!

Caleb11

4 hours later & still wAiting to hear anything back. This is torture I hope I don't need to wait until monday