Property Down Valued by NW

l66b

marathonic wrote: »

I'd chance requesting to meet in the middle - so a £12,500 discount. If the sellers are motivated, you save a fortune. Otherwise, there's plenty other properties available on the market.

Yes that would be a good compromise. I am half tempted to offer something less. We have been looking for some time but this was the best we had found. Although its a 2 bedroom flat but its just over 1000 sq. feet big and just seemed to be the largest in size that we have found. 7 years old as well and the owners had bought it as a new build for £250k. So it was actually kind of a shock to us that NW came back with a value so much less than what it was on the market for..
I think at £195k the owners would have lost too much money to accept that price. We just have to figure out how disappointed we would be of they said no.

neverdespairgirl

l66b wrote: »

Hello,

A flat we are trying to buy was initially down-valued by Nationwide by £25,000 off the offer we had made. Since the sellers were not happy about this they suggested we get another valuation through Abbey who have now confirmed that the flat has been valued to exactly the offer that was made by us (£25,000 more than what Nationwide had valued it to be).

Why on earth did you do that?!

opinions4u

l66b wrote: »

I think at £195k the owners would have lost too much money to accept that price. We just have to figure out how disappointed we would be of they said no.

Don't "think". Find out. Offer them £195k.

If they reject it then consider your options (my view is there are other properties out there).

I don't get why you want to push the price up.

l66b

neverdespairgirl wrote: »

Why on earth did you do that?!

Because when Nationwide came back with £195 the sellers were unhappy about that and the broker advised that Abbey does free valuations. As I have said before we only did this to shut the seller up and get confirmation of the lower price. But Abbey came back with £25k higher price.

neverdespairgirl

l66b wrote: »

Because when Nationwide came back with £195 the sellers were unhappy about that and the broker advised that Abbey does free valuations. As I have said before we only did this to shut the seller up and get confirmation of the lower price. But Abbey came back with £25k higher price.

Next time, don't look a gift horse in the mouth; negotiate on the figure you've got.

From_St_Neots

What is the difference in the deal between Nationwide and Abbey, if the Nationwide offers a better monthly payment then that is your leverage not to go with Abbey and tell vendor that. i.e. offer the £195K others suggest and state that the Abbey deal is outside your affordability so you won't be considering that unless there was a reduction in the purchase price.

l66b

From_St_Neots wrote: »

What is the difference in the deal between Nationwide and Abbey, if the Nationwide offers a better monthly payment then that is your leverage not to go with Abbey and tell vendor that. i.e. offer the £195K others suggest and state that the Abbey deal is outside your affordability so you won't be considering that unless there was a reduction in the purchase price.

That's what we have decided as well. The Abbey mortgage rate a little bit more than NW but they are asking for 15% deposit instead of 10%. Also after the 2 year fixed period the rate for Abbey goes up (whereas NW comes down).
I need to talk to the State Agents today and that is going to be my approach. It doesn't financial sense for us to go with Abbey so unless they are willing to bring their price down so we could go with NW we are out.

Bufger

Forget the valuations, they only matter if you pay a much higher price than the bank is willing to lend against and you have a shortfall.

What do you want to pay for the property? What figure in your head is reasonable and affordable to you? Then start negotiations 5-10% lower than that figure. If they have desperate circumstances for a move then start negotiations 10-15% lower.

In perspective you're talking about not negotiating the cost of a good car or half of a deposit for a buy to let or 6-10 decent holidays.

l66b

Bufger wrote: »

Forget the valuations, they only matter if you pay a much higher price than the bank is willing to lend against and you have a shortfall.

What do you want to pay for the property? What figure in your head is reasonable and affordable to you? Then start negotiations 5-10% lower than that figure. If they have desperate circumstances for a move then start negotiations 10-15% lower.

In perspective you're talking about not negotiating the cost of a good car or half of a deposit for a buy to let or 6-10 decent holidays.

The valuation was £25,000 less than the offer we had made. Meaning NW will only lend us 90% of 195k (£175,500). If I absolutely had to get this property I wouldn't/couldn't pay anything more than 205k for it. I know some people would still turn around and say ' why are you trying to pay more than you have to?' but I guess as someone else said above a property is worth what you are willing to pay for it.

l66b

Just so you all know:
We offered them the 195k that was valued by NW and since they will be buying a new house and they were going to use the money to buy that one (and they need all of the 220k) they said no. So back hunting again, this time for a house rather than a flat!
Thank you everyone who gave constructive feedback.