Help! Massive devaluation of S/O Flat

irnbru_2

indiegirl wrote: »

I'm extremely angry at the agents for overvaluing by so much.

The agent did their job, the purchaser agreed the value and has now let you down.

indiegirl wrote:

I have options to loan money from parents (dropping out of the house we are buying is a no-no because my OH has set her heart on it)

Don't ask your parents to prop up the market - they may be lending you real money.

Ask your chain to take the pain.

indiegirl_2

I studied the survey of the house I'm buying last night and there may be a caveat in there regarding the condition of the house to allow me to perhaps negotiate slightly on the purchase price. Basically, the survey says "yes, this house is worth X but only if you are willing to undertake the decorative work and to improve the condition" (it needs a new kitchen and a bit of TLC really). I think that this is my option to negotiate with the vendors and I'll try the vendors EA later today.

I can only blame two people for the differences in the valuation and the mortgage valuation - the EA who I sold with have overvalued (we always knew that it was, just didn't realise by quite so much!), and the surveyor has undervalued (there are 'lesser' flats nearby going for 10k more outright).

The house I'm moving to isn't as overpriced. I think the issue with my flat is down to the fact that it is S/O (as lynzpower suggested), and that it's in a new area where plenty of building work is ongoing. The house I am moving to is in an area that is established and prices are more stable over that way.

There's only three people / two properties in the chain. My buyers are FTBs, and I am buying an empty ex-BTL from my vendors. There is no onward chain, so unless my vendors come down a little on their price I don't have really have anywhere else to go.

My EAs are dealing with my buyers and I am awaiting a new price to be agreed - I expect it to be close to the valuation but probably no more.

jonathon

im might be a bit thick here but the 3 valuations i know you went with the highest , how much was the lowest ?
a house is only worth what someone will pay for it and the problem here seems to be you ftb mortgage are thay trying to get a 100%.
have you asked your ea why you are 25k difference on valuation ? you dont say how much your flat is but 25k seems a lot is there somthing wrong with your flat.
when we had an ea around he thought it was a good point being shared os and we could ask a little more because of it but the housing assotion and the estate agent were only 2k apart on value.
as the housing assocation own half what do thay say about the valutions ?

indiegirl_2

I haven't been able to gain the full details of my buyer's funding - all I know is that they are getting a mortgage, but whether it's 100% I have not been told. I don't think the EA is allowed to tell me under the DPA.

The highest valuation of my 50% was 12.5k above what the valuation has come in at, the lowest was 5k higher than what the valuation has come in at.

With regards to the flat, it's a year old and to my knowledge there is nothing wrong. My buyers had a valuation report rather than a Homebuyers Survey.

The Housing Association seems to work backwards compared to most. We gave them their 28 days to find someone. Had they found someone we would have then had to pay for the valuation to agree the price.

That didn't happen. We were told to put the house on the open market, they would then approve the buyer (via an application pack) and then they ask for the valuation report from us. They haven't asked for a valuation report yet as they are still trudging through their paperwork to approve the buyers. The HA have had no input into the value of the flat whatsoever.

indiegirl_2

An update if anyone is interested:

Our EAs have formally questioned/appealed (whatever) the mortgage lender's survey results. They believe that the survey valuation is too low and have gone back to the surveyor to ask him to reconsider, with examples of a flat which sold in my block last March (06) for the same value as they've placed on it now, and examples of smaller flats locally with no garage that are selling for 10k more than the valuation this surveyor has given.

Has anyone seen this happen before and am I likely to get any joy from it - or is it just false hope on my part?