Decided to pull out after survey - awful time with Estate Agent

tom9980

jdavtz wrote: »

...we will need to sell in 3 years..

Erm you shouldnt be buying a house at all if you NEED to sell in 3 years.

MAFERGAL

pacific4130 wrote: »

If you put an offer on my house below asking, had it agreed subject to survey etc, only to decide it's not want you want to pay after a survey that picked nothing serious up (and presumably withheld viewing for a week or two), you'd get more colourful language than that out of me!

Thrugelmir wrote: »

I'm sure the vendor is fuming. As no doubt they're progressing their onward purchase as well. In the belief that they had a serious buyer themselves.

In this climate why would anyone pay more than a house is worth, especially if they are stretching themselves in the first place? That's the point of home buyer reports, valuations isn't it? To determine any faults/issues/potential problems and the value of the property.

I feel for the vendor/any seller who can't get what they need/think their house is worth but if the target market need a mortgage, they will never get that mortgage if it's over priced and will pay a lot of money out in finding that out (like me!).

The OP paid for a service, sounds a serious buyer to me. That service says the property is overpriced so I don't see the issue with pulling out.

maninthestreet

Jesus! An EA judging someone as having a 'boring life' - that really does take the biscuit!

Thrugelmir

MAFERGAL wrote: »

The OP paid for a service, sounds a serious buyer to me. That service says the property is overpriced so I don't see the issue with pulling out.

The report didn't.

Got report today, no major issues with house itself but advised that 267k not totally unrealistic but absolutely at upper end of value for house.

MAFERGAL

Thrugelmir, Home buyer report states it's at the top end value, rightly so OP wanted to know more. His true valuation when asked was more realistic and no doubt the area any mortgage valuation would come up with/he would have given in a mortgage valuation.

As OP stated would have had to pay HSBC to do mortgage valuation, prob costing another £400-500. So pay that and risk being told what you feel you already know...? Waste more time and money. From my experience I wouldn't advise it and would not do it again.

pacific4130

Building surveys and home buyer reports are inspections which highlight the condition of the property. The value of a property on them is a very rough guideline. In this case it's the opinion of one individual - who, let's not forget, actually valued the property at that price ( at upper end of value for house).

The OP is completely in their own rights to pull out - it's not a legally binding offer. However, they should expect, and certainly not be shocked, when sellers and EA are not happy.

jdavtz

Very interesting to read the completely opposing viewpoints in this thread, some thinking my action is entirely reasonable and others saying the polar opposite.

Just to reply to a couple of the points made:

Thrugelmir wrote:

Reading between the lines you are not committed to this particular property. Next time make an offer make sure that the property is for you.

"Committed" at any price? I think it would be foolish to ignore the advice of a professional who's contracted to give advice on the value among other things. Besides which, as MAFERGAL mentioned, are HSBC really likely to value it at 267? when the reason for THEIR valuation will be to make sure they can sell the property off if they need to repossess it - not wait months for a "committed" buyer who is emotionally in love with the property and will pay any price for it. They'll value it lower, which means we won't be able to get the mortgage, which will waste more time and money for everyone involved as we don't have an extra 17k to throw into the deposit pot.

I've spoken directly to the vendors and explained that we're sorry and disappointed that things have ended up this way but that we really can't progress further. They're obviously upset but say that they understand it from our perspective. They believed they bought at "the very bottom of the slump in 2008" and so were obviously hoping to at least recoup their 270k expense. It doesn't help them that the mid terrace next door sold new for 190k in 2009 (same house, smaller garden) and the other end-of-3-houses terrace sold new for 205k in 2009 (same house, slightly smaller garden) -- the slump clearly wasn't at its bottom at all.

ess0two

jdavtz wrote: »

Very interesting to read the completely opposing viewpoints in this thread, some thinking my action is entirely reasonable and others saying the polar opposite.

Just to reply to a couple of the points made:



"Committed" at any price? I think it would be foolish to ignore the advice of a professional who's contracted to give advice on the value among other things. Besides which, as MAFERGAL mentioned, are HSBC really likely to value it at 267? when the reason for THEIR valuation will be to make sure they can sell the property off if they need to repossess it - not wait months for a "committed" buyer who is emotionally in love with the property and will pay any price for it. They'll value it lower, which means we won't be able to get the mortgage, which will waste more time and money for everyone involved as we don't have an extra 17k to throw into the deposit pot.

I've spoken directly to the vendors and explained that we're sorry and disappointed that things have ended up this way but that we really can't progress further. They're obviously upset but say that they understand it from our perspective. They believed they bought at "the very bottom of the slump in 2008" and so were obviously hoping to at least recoup their 270k expense. It doesn't help them that the mid terrace next door sold new for 190k in 2009 (same house, smaller garden) and the other end-of-3-houses terrace sold new for 205k in 2009 (same house, slightly smaller garden) -- the slump clearly wasn't at its bottom at all.

Armed with that info,its very amateurish of yourselves to offer such a large amount from the off.

Hoof_Hearted

ess0two wrote: »

Armed with that info,its very amateurish of yourselves to offer such a large amount from the off.

No blame for pulling out, but the lesson is to ensure, by doing some research, that the house you offer on is realistically priced in the first place. The vendors may be unrealistic, but they have been messed about.

As for EAs, a minority are beyond contempt. As stated elsewhere, the commission culture makes them behave like sharks, As soon as they see their commission disappearing they turn nasty.

Thrugelmir

jdavtz wrote: »

Value it at 267? when the reason for THEIR valuation will be to make sure they can sell the property off if they need to repossess it - not wait months for a "committed" buyer who is emotionally in love with the property and will pay any price for it. They'll value it lower, which means we won't be able to get the mortgage, which will waste more time and money for everyone involved as we don't have an extra 17k to throw into the deposit pot.

The attitude of the bank will depend on the amount of equity you inject at the outset. Bear in mind that you be repaying capital every month so the banks exposure is reducing. The emphasis on the valuation for the bank is whether the property provides adequate collateral security for the loan. Which in essence your surveyor confirmed.

You appear hung up with the additional £17k. When this additional £17k would have you an additional £5k of stamp duty. A high price to pay for 3 years in a property. Buy for less than £250k if money is an issue. Will save on EA fees when you come to sell as well.