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Lender valuing property at less than agreed price
Deg
Posts: 12 Forumite
Hi,
We currently going through the process of buying a property. It had an asking price of £365k and an offer accepted for £342k - an offer they had originally rejected, but came back a week later asking if it was still on the table! We felt this was a very good price for what we had seen in the market for this price range.
We are buying the house with a 85% mortgage, but the lender has just come back saying that their valuation says the property is only worth £325k, and will only lend us 85% of this. This has left us needing to stump up an awful lot of money now if we are to buy the property at the agreed price - but this will wipe out any money we had left to furnish the property or spare cash for any emergency.
I've not seen the reasoning behind the valuation, or what type of valuation has been done but will chase up for the report today.
Is there anything we can do about this situation? We have heard that one option for us is to negotiate on the buying price with the sellers - how should we approach the estate agents about this?
Thanks
We currently going through the process of buying a property. It had an asking price of £365k and an offer accepted for £342k - an offer they had originally rejected, but came back a week later asking if it was still on the table! We felt this was a very good price for what we had seen in the market for this price range.
We are buying the house with a 85% mortgage, but the lender has just come back saying that their valuation says the property is only worth £325k, and will only lend us 85% of this. This has left us needing to stump up an awful lot of money now if we are to buy the property at the agreed price - but this will wipe out any money we had left to furnish the property or spare cash for any emergency.
I've not seen the reasoning behind the valuation, or what type of valuation has been done but will chase up for the report today.
Is there anything we can do about this situation? We have heard that one option for us is to negotiate on the buying price with the sellers - how should we approach the estate agents about this?
Thanks
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Comments
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I would tell the sellers that you aren't prepared to pay more than the valuation and see what they say.
Point out that future valuations are likely to be similar.
Your next move depends on their response and how much you want the house.0 -
Point out that future valuations are likely to be similar.
..and that anyone getting a similar mortgage deal to you also won't be able to buy at their price without having substantial funds behind them....
Contact the EA, tell them the house was valued by your lender's surveyor at £X, and your offer is reduced in line with their valuation, which dictates what you can afford. Don't hint to them you are able to put more cash in (even if you can)0 -
I would be delighted if I was you.
Offer 325k and save 17k:beer:0 -
Have you spoken to the estate agent, that would be my first point of call, let them do the negotiations0
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Wait to see the reason why.. our last valuation valued it at less but it was just cos of some potential issues on the survey that were checked out and turned out to be nothing. If its a genuine survey issue definitely knock that amount off your offer! (unless its something really bad.. )Trying to think of a clever witticism, but cant, so... *insert clever witticism here*0
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Buy the surveyor a drink as well, he may have saved you a tidy sum!Sealed pot challange no: 3390
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This happened with my buyers - valuation was 20k less than agreed price.
My estate agent asked them to try a differerent bank / building society for their mortgage and hope their valuer values it at the agreed price.0 -
Some prices are laughable. EA guesses the price, then they always stick an extra bit on ... and the sellers cling to that extra high price, believing that's what it's worth. A surveyor has a different eye on the ball .....0
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Good_Money wrote: »This happened with my buyers - valuation was 20k less than agreed price.
My estate agent asked them to try a differerent bank / building society for their mortgage and hope their valuer values it at the agreed price.
If I was a buyer and a professional valuer told m ethe house was overpriced I wouldn't be trying too hard to prove him wrong.
Nice try by your EA though.0 -
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