Lender valuing property at less than agreed price

betmunch

You should be, thats what the EA should be suggesting, he works for you remember he should be looking at ways to keep the price high

Deg

Thanks everyone for the advice.

The report says the price is considered to be too high and not supported by evidence of sales of comparable properties in the locality.

I'm due to get our own survey back tonight so I will speak to the estate agent tomorrow to push for £325k.

Fire_Fox

Did you not research sold prices yourself before offering or is the surveyor wrong? Your initial offer should have been placed subject to survey and valuation. Write to the owners via the estate agents, reduce your offer based on the lender's valuation, reiterate your strong position as buyers (finances in place, chain free, keen to proceed quickly etc).

Mickygg

If it was me selling and I wanted x, but someone came back with a mortgage valuation figure much lower, I would put house straight back on market. The seller will never drop another £17k especially when they know you were interested until mr mortgage came along. That's a 5% drop on top of the previous 6%. However you can try!

shays_mum

Same thing happened to me very recently. It turns out there was no similar propertys on the road, so he looked at the last few sales & came up with a figure. This caused some probs for me, in that this was the house i wanted & it was much larger & had more done on it than the previous sales.
I would negotiate more on what needs doing to reduce the price as opposed to the valuers report, also banks are very stringent at the mo, so are baring on the side of caution.
Hope all goes well!
ps) got £10k off the price in the end!

Deg

To make matters worse, the survey has highlighted £20k of required work (roof joists and chimney repair in the roof space mainly). Going to be an interesting day tomorrow but fingers crossed that they are reasonable.

Zero_Sum

Mickygg wrote: »

If it was me selling and I wanted x, but someone came back with a mortgage valuation figure much lower, I would put house straight back on market. The seller will never drop another £17k especially when they know you were interested until mr mortgage came along. That's a 5% drop on top of the previous 6%. However you can try!

and unless they cash buyer, they'll have the same problem with everyone else

Fire_Fox

Deg wrote: »

To make matters worse, the survey has highlighted £20k of required work (roof joists and chimney repair in the roof space mainly). Going to be an interesting day tomorrow but fingers crossed that they are reasonable.

And you haven't withdrawn your offer? :eek: Is the lender offering £325K with a £20K retention then?

Mickygg

Zero_Sum wrote: »

and unless they cash buyer, they'll have the same problem with everyone else

Not necessarily. Different lenders will have their own views on values.
I just can't believe with the £20k survey costs the OP hasn't pulled out. To expect the seller to suddenly drop to £305k from £365k just isn't going to happen.

thelem

Did you know about the £20k of work before or after you put in your offer of £342k? Did the mortgage valuation take account of that work?

The way I see it, either:
a) mortgage valuation and survey both caught same problems but agree with your original offer price after remedial works; or
b) only surveyor caught problems, meaning the price should be reduced by a further £20k