Mortgage company valuation 15k less than our accepted offer - what now?

Oranjeboom

RoxieW wrote: »

Our property was recently Downvalued from £140k to £115k - so, by a huge percentage! Of course we then would only expect our buyer to pay £115k - you can't in fairness expect someone to pay over the mortgage valuation, unfortunately for us.

By the by as she has still pulled out anyway. We won't be re-marketing at £140 though - what's the point for the same thing to happen again?

Tancred, sorry you are deluded if you think someone is going to pay over the mortgage valuation. OP - I would imagine they'd be expecting you to renegotiate now.

Thanks Roxie for your post - I would only like to think that our vendors will be as realistic as you have been in lowering your expectations. But I fear that the EA will be telling them to stick to their inflated asking price.:o

The_Pixi wrote: »

This happened to me the other month, we saw a property that was on for £250K reduced from £269K. It was a property bought at auction and then done up, so we would have had a blank canvas to start from.

On viewing I felt it was a bit small and that the fixtures and finish was simple and cheap.

I thought the drop to £250K was because they were getting no interest at £269K, with that floor space and finish. I did a bit of Googling and could only see similar property on the same street going for £209K - £215K so I offered £220K with a view of going as far as £228K given I really valued the clean white canvas.

£220 was instantly dismissed and the Estate agent said they had already rejected £230, and really kept going on that it was worth it, being first time buyers got a little panicky and ended up offering £250K (This is at the lower end of our budget anyway so were happy to go for it)

This was promptly accepted and then demolished at valuation as he came in at £225K bang in the middle of where I initially thought. The estate agent tried every trick sending comparable to the broker, trying to convince us it was worth £250K and that there were a queue of eager buyers.

Further research uncovered they bought at auction at £198K and then the picture was clear, the road value was around £205K - £225K depending on size and finish, they over spent at auction resulting in a less than top spec finish and I think unrealistic value.

I walked away, and It still hasn't sold, the estate agent even sent a crowing e-mail to say they have now accepted an offer for full asking :T good luck with that I thought, soon as the valuation hits I doubt it will get further.

The agent was quite rude, so I'm looking forward to moving into my first home soon and sending her a lovely response

Sounds like a very similar scenario Pixi.Unrealistic vendors being egged on by the EA.:mad: We may pull out if they don't accept a lower figure...and then the whole cycle can start again with the next buyers. Money earned for the surveyors and solicitors...

There had been a previous 'sale' that fell through with this property which the EA attributed to money issues on the buyer's side...but now I am thinking this was to do with their valuation on the house.

Back to Rightmove etc I go!:sad:

phoebe1989seb

oranjeboom wrote: »

Thanks Roxie for your post - I would only like to think that our vendors will be as realistic as you have been in lowering your expectations. But I fear that the EA will be telling them to stick to their inflated asking price.:o



Sounds like a very similar scenario Pixi.Unrealistic vendors being egged on by the EA.:mad: We may pull out if they don't accept a lower figure...and then the whole cycle can start again with the next buyers. Money earned for the surveyors and solicitors...

There had been a previous 'sale' that fell through with this property which the EA attributed to money issues on the buyer's side...but now I am thinking this was to do with their valuation on the house.

Back to Rightmove etc I go!:sad:

Unrealistic vendors are a total PITA :mad:

We are the first to admit that we overpaid for our last house in 2007 and instead of accepting we'd made a mistake in moving to a gorgeous house in a rubbish area, we compounded the issue by throwing money at the horridly dated interior in an attempt to both restore it sympathetically and convince ourselves to make the best of things.

Three years later we realised we still hated living there and decided to sell.......BUT - instead of trying to reclaim the money we'd spent, we priced realistically in order to get the hell out of there and whilst we lost out financially, we achieved the desired result - selling quickly and buying a house with bags of potential for a good price in a much more desirable location

Why, oh why do other deluded vendors not do the same?

Oranjeboom

phoebe1989seb wrote: »

Unrealistic vendors are a total PITA :mad:

We are the first to admit that we overpaid for our last house in 2007 and instead of accepting we'd made a mistake in moving to a gorgeous house in a rubbish area, we compounded the issue by throwing money at the horridly dated interior in an attempt to both restore it sympathetically and convince ourselves to make the best of things.

Three years later we realised we still hated living there and decided to sell.......BUT - instead of trying to reclaim the money we'd spent, we priced realistically in order to get the hell out of there and whilst we lost out financially, we achieved the desired result - selling quickly and buying a house with bags of potential for a good price in a much more desirable location

Why, oh why do other deluded vendors not do the same?

Yes, that must have been painful for you to do - lose out $$$$. But at least you sold within a reasonable timeframe rather than putting your life on hold.

And I guess many vendors are obviously wanting to maximise their 'profit' or at least minimise their loss (or 'investment' that they've made in the property). Then they are deluded by many EA (especially if they are charging on a % basis) into unattainable selling prices.:o

Hopefully we can make the vendor realise that even if we pull out, then the next buyers will also have this opinion when they get their valuation back. In our case as we are only after a minimal mortgage, other buyers will have bigger mortgages in which case the banks will simply not lend them the money if the house is over-priced. It would be in their own interests to lower the price rather than putting it back on the market and then only having to lower their price 6months down the track.