Valuation lower than sale price

AliceBanned

Hi

I have an AIP with a lender and now the surveyor has come back and said there is no reason for the increase in the property's value (it was also valued in Feb this year and has gone up £2.5k due to bidding).

I am awaiting a call from the lender. Not sure what my options are but is it usual to try and get the price back down? I don't think there are other buyers (can't be certain) and I have told the seller I can go ahead asap - they are in a hurry. I don't want to pay too much over the valuation but was thinking of offering say £1k more and borrowing this amount (as I don't have more to add to my deposit and the lender will probably refuse).

Thanks

amnblog

Why buy for more than it is worth?

AliceBanned

Thanks. According to the Estate Agent at the time there were bids but all of a sudden when I offered this amount more, it was mine. I don't think it is overpriced and I think it was valued conservatively - isn't it partly down to subjective opinion, what you think it is worth? I think it is worth the extra but I can't get a mortgage for it due to the valuation.

_Andy_

Why pay any more than what it's worth?

Basically you've paid a professional valuer to tell you what it's worth.

They've now told you and now you're wanting to pay more.

I don't get it.

TrickyDicky101

You will need to rustle up the extra £2.5k from somewhere as the mortgage provider will base the mortgage offer on the surveyor valuation. Or, you can go back and use the surveyor valuation to negotiate downwards to this valuation.

AliceBanned

Isn't this what happens if the flat is so popular that there is a bidding war? I thought that was normal, and it's only £2.5k over.

AliceBanned

TrickyDicky101 wrote: »

You will need to rustle up the extra £2.5k from somewhere as the mortgage provider will base the mortgage offer on the surveyor valuation. Or, you can go back and use the surveyor valuation to negotiate downwards to this valuation.

Thanks, I'll think I'll try to get the price back down. I'll speak to the lender's mortgage adviser first.

gazter

AliceBanned wrote: »

Isn't this what happens if the flat is so popular that there is a bidding war? I thought that was normal, and it's only £2.5k over.

But you might also be getting played by the vendors estate agent. It's what they do (well, the good ones). Nothing like a fever pitch to get people to buy.

My EA while not as brutal as the one you are buying from, managed to get an asking price offer by telling (truthfully, by the way) that three more people were interested in my house and were in the process of putting an offer in (which is also truthful).

They might be telling the truth, they might not, but they got the desired result.

pjread

Another consideration, is this 2.5k on a 30k flat in outer liverpool or a £2m flat in kensington? if the former run for the hills, if the latter suck it up...

CKhalvashi

pjread wrote: »

Another consideration, is this 2.5k on a 30k flat in outer liverpool or a £2m flat in kensington? if the former run for the hills, if the latter suck it up...

This is the point.

We paid £53k over the original asking price for our property, and we've turned it into a home (although I wanted that road at the time, and no other, as did several others)

For the value of the house, it was worth it. On a property that was up for £30k, certainly not.

CK

BeckyMellor225

surely a property is 'worth' what someone is prepared to pay for it? The price I paid for my house is a multiple of the rebuild costs and land.
we got it through a horrible 5 way sealed bid situation and the valuation just came back as our bid amount.