Lender Valuation Considerably lower than asking price!!!

michaelkosei

Hi all just wondering if I can get help/advise from anyone.Me and my partner have found a home that we are definitely interested in whichwas going for £150,000. We put in an offer for £147,000 and this was accepted.

We made our mortgage application with Halifax and they senta valuator which we paid £315 for so doubt this was a drive by valuation but toour surprise they valued the property at £115,000 that’s £32,000 under theasking price!!!!

What are the options we have what are the next steps as weare first time buyers and confused were we go from here any help would be much appreciated

Kind Regards

Michael

yoyoegg

optiona are to lower your offer or find more deposit £. Put the Rightmove link here and we'll let you know what s a realistiv value.

michaelkosei

thank you for your reply yoyoegg the property has only just come on the market and we made offer before it was offically advertised. i have a link about the area:

its number 1

rightmove.co.uk/house-prices/detail.html?originalIncode=2&outcode=CV6&incode=2&country=england&streetName=Conrad%20Road&locality=Coventry&buildType=1&propertyType=0&year=20&sortOrder=descending&columnToSort=TENURE

Tancred

michaelkosei wrote: »

Hi all just wondering if I can get help/advise from anyone.Me and my partner have found a home that we are definitely interested in whichwas going for £150,000. We put in an offer for £147,000 and this was accepted.

We made our mortgage application with Halifax and they senta valuator which we paid £315 for so doubt this was a drive by valuation but toour surprise they valued the property at £115,000 that’s £32,000 under theasking price!!!!

What are the options we have what are the next steps as weare first time buyers and confused were we go from here any help would be much appreciated

Kind Regards

Michael

Can you not use another lender? Or look at the local market for similar houses and do a comparison. If these are in line with the price then the valuer has made a bad mistake.

Tancred

Zoopla quotes £112k
Mouseprice quotes:
Valuation estimate - £120,400
Value range -
£108,000 to £132,000

So it seems that the price is significantly above the true 'value', though I do think £115k is too low.

Maybe you should ask to renegotiate the price. I do find it disturbing that these mortgage lenders seem to be dictating the market almost on a whim.

Thrugelmir

What did the valuation report say?

May be worth checking that isn't a typing mistake in the valuation ?

£150k asking looks at the top end of the market.

Tancred

A true valuation will always give a range rather than an exact figure. It's impossible to come up with an exact figure in a dynamic market, so any figure that the valuer comes up with is meaningless, just picked at the low end of the range to cover his backside.

Annisele

I'd be asking why it's worth so much more than this one. There might be a very good reason, but the valuer will probably have thought about that property.

yoyoegg

http://www.rightmove.co.uk/property-for-sale/property-26091945.html

Vendor asking £25k more than 2006 sale price. Would need to have done a lorra, lorra improvements, prices have slumped in East Mids!

kingstreet

Ask Halifax to ask Colleys to review the valuation.

Consider a new mortgage lender.

Accept the value is right and request a price reduction.

Are there any essential repairs required? What's the valuation after essentials? What are the surveyor's general remarks about the property/area?

kBHX

Although its a big increase the house prices in Coventry are generally recovering better than the West Mids region as whole. Not sure the reasons but with companies such as Jag Land Rover and suppliers recruiting heavily it may have put more demand on local housing. I live near Coventry and properties here are selling back around the 2007 mark.