House has been valued at less than Agreed Sale price

bumparoo

My partner and I are first time buyers and had agreed a price on a property at £62,500 which we thought was a fair price for the house and the area in which we were looking. We have been dealing directly with the owner rather than through an estate agent. I had a baby at the start of the month and we wanted to be in the property before the baby came rather than trying to move after, so we agreed that my partner and myself could move into the house and rent it while convayencing and mortgage went through.
The valuer was out yesterday and valued the property at £52,000, and as we were looking for 90% LTV it means we now can't get a mortgage to cover the whole of the sale agreed price.
Just unsure of what to do, we don't want to continue renting, the thought of moving house again fills me with dread, I can't see the owner dropping another £10,000 off the house, and we certainly don't have the cash to make the difference up.
It would be easy to walk away from the sale only being out the cost of the valuation, but we're actually living in the house and have invested in it already. I swear, once I buy a house I'm not moving or changing mortgages for the rest of my life, its a massive pain in the behind.

cabbage

The owner of the property may accept a lower offer as otherwise it means you can't buy it and any other buyer that comes along will have the same result ie a lower valuation than the asking price.

ACG

I feel for you, i had to move out of my last place putting all of my things in storage to then move into the new place a week later - 2 moves in no time at all, i know exactly what its like!

You have a couple of options:
Appeal the decision, for this though you would need to get on rightmove and zoopla and have a look at what houses are up for sale for and more importantly what they are actually selling for. Try to find some similarities in order to get the house price up.

Next option is to see if you can come to a private agreement with the vendor, see if they will reduce the price - you dont get if you dont ask.

Alternatively you could maybe look at agreeing to buy the house and then pay him an amount on top each month, although saying that im not sure i would want someone owing me £10k and paying it back over a few years. You could maybe take on a loan after the mortgage has completed?