Valuation lower than sale price

AliceBanned

holly_hobby wrote: »

Where there is a mge reqd, the property has been downvalued on survey, and the vendor won't budge, some buyers will be happy to fund the difference between the max mge available to them, and the agreed pch price.

Agreeing to pay more than its been valued for (or even the original marketing price, as we see with bidding wars and gazumping), is your own choice, as Halifax have stated, albeit the lender won't fund it and its a decision which many (inc me) may not agree or feel comfortable with on your behalf.

But the choice is yours.

Hope this helps

Holly

Thanks; it is quite special, but not perfect. I am glad the lender stepped in. On principle I am not overpaying by more than £1k as I am taking a risk - I have weighed everything up and a the area is so special and sought after I am not worried that I will lose out. I am also getting £600 cashback from my lender. I have all my furniture etc. as I've lived in a housing assoc flat which I furnished myself over the years. So I am going to go ahead if they agree with this, but pull out if they don't, as I think they are being greedy if they expect more.

AliceBanned

dumpallhere wrote: »

Following the money "saving" forum mantra - " a house is worth what you are willing to pay" - does the £1.5K premium justify your interest in this particular property?

You say this is the one you want and it is convenient for you. Look at it this way - £1.5K is the premium you'll need to pay for such. Can you save £1.5K in other ways (e.g. - commuting expenses). If you can, it is a no brainer!!

If people were to buy houses only at the price that they are worth (in monetary terms, as valued by a surveyor), new builds will stop selling! I would rather pay a (justifiable) premium to live in a home that I like instantly, than live in a place that I purchase at the "right" price but am unsure then whether I would love living there or not!

IMHO ....

Thanks. I can save in petrol expenses and will be able to do a lot more, as where I live now is too far from my social life, and is too quiet a town and too far from my friends. It's not a perfect financial situation as it is SO but I've already weighed this all up and decided it would be the best option for me for the next few years, as at least I'd live in a lovely flat and have more of a life. It's not all about money - as you clearly understand. I've lived in too many dives during my life and I'm looking for an upgrade, I've worked hard enough for it.:)

AliceBanned

cattie wrote: »

Can't you just tell them that you just don't have any spare money to pay & it has to be the mortgage valuation or nothing? If they are as desperate to move as it sounds as if they are, then they will accept it. They run a risk if they don't accept it & you decide to pull out I don't think they would be very happy at losing a buyer this many months down the line. I know I wouldn't as a seller & would take the lower offer & be done with it.

If it were a stand alone property, then paying a bit over the valuation might not be foolhardy, but being a SO which appeal to a far, far smaller market, it's like being robbed. The ea was obviously stringing you along with tales of other offers & that makes me feel angry as you've been taken advantage of.

If you are of the mind to still pay over the valuation, don't accept the £1500 quoted, do some hard negotiating & get that figure reduced further. Every penny you can save will be a penny extra to spend on furnishing your new home.

I know what you are saying about SO. The original price I bid to would have taken the value £7k over the valuation price (at 100%) which is ludicrous. That was down to the EA taking advantage so I'm glad I've brought it back down quite a bit. I wish I had told them I don't have any more to pay than the valuation price. It's too late now. The EA has told me that the vendor has little confidence in me going ahead, as I had pulled out back in Feb and taken time out to keep looking, then came back to it. Understandably the vendor is nervous and I need to tread carefully but I made it clear I'm serious about it, I've looked elsewhere and regretted pulling out. that's where the EA has managed to play me of course.

In this case even as a SO I think it is highly sellable - it is just in such a fantastic location, has excellent transport links, it is very upmarket and in an upmarket area by water, and has a nice vibe etc. OK it's the lifestyle I'm paying for but it's the right lifestyle for me, in terms of commuting etc so I decided to go with it despite SO.. as some people have had ok experiences with SO. I know it's not perfect. I'm just ready to move and I couldn't move to somewhere I like, unless I did it that way, not for many more years.

I have told them I am not going higher than £1k over the valuation price. I'll put the rest down to experience, I haven't handled this well but I've learnt a lot and I'll be in a better position there than I am at the moment, as far as anyone without a crystal ball can tell.:)

xyellowx

Quote:
Originally Posted by xyellowx
you put a offer in jan had it excepted then pulled out? now your going to tell E/a they will have to wait a few months as you cant cover the mortgage and dont have the funding?

if i was seller id have you down as a timewaster
Thanks for your feedback, but no they don't have me down as a timewaster, because I'm not and I've made this clear through good and honest explanations and negotiation. I've not relayed everything in this thread, but obviously having changed my mind once I took great pains to emphasise my seriousness in the property. I'm also a first time buyer and buying on my own. This was the third flat that I saw, so I was inexperienced, but it just appeared at that time rather than after me trawling through and viewing many others before coming to the realisation that it was the one I wanted. It's not a crime to change my mind, no one lost any money but me (on homebuyer survey) by me pulling out.

It's a big commitment and I've learnt a lot from that experience. I've also had to renegotiate the price due to apparent other bidders (whether they exist or not I don't know), so I've not only apologised, I've also been willing (but due to the lender unable, via a mortgage anyway, to offer a higher price).
it seems they did then after all?

xyellowx

_Andy_ wrote: »

Strange kind of money 'saving' forum when people want to pay thousands more for something than what it's worth.

seems in london it doesnt matter :eek:, as most banks are based there it could explain a few things really

AliceBanned

xyellowx wrote: »

seems in london it doesnt matter :eek:, as most banks are based there it could explain a few things really

What do you mean exactly?

I don't live in London.

AliceBanned

And £1000 does matter. I'm just trying to stop the vendor being even more greedy than that. But the property is right for me so of course I'll go ahead if I can.

It's really not on for you to make any accusations about my attitudes to money. You know absolutely nothing about me or where I've come from or how hard I struggle.

I find your posts really quite offensive. yellowx. Please stop making insinuations about me. If you have some kind of chip on your shoulder then please deal with this yourself, and don't take it out on me.

xyellowx

i mentioned i would have you down as a time waster and thats what has happened no need take offence (the thanks buttons below )

why would you come on a money saving website and say you dont mind paying 1500 more than value and take offence when people dont agree?
if you ask a question on here dont take it personal if you dont like the answer

AliceBanned

Oh no it's not that fact that bothers me at all. It's the insinuations made in the form of "jokes". And if I don't like it I'm perfectly entitled to stick up for myself, that's all I'm doing. Of course people take judgemental comments personally, however impersonal the internet is; many people abuse that anonymity; there are names for these people. It's ok for you to say don't post on here if you can't take comments you don't want to hear; well no right now i don't want to be mocked, I don't want to be judged. That is not constructive criticism, I'm quite happy with that and can take it on the chin, but I don't expect to reach out for help and have moral judgements thrown at me.

Was the comment about London and banks posted to educate/help me?! I don't think so! I only protest at a generalisation being made that I am not a moneysaver (from a point of moral superiority imo) based on the fact that I am paying above the valuation by £1k). I have managed to get it down now to £1k over the valuation price (from £3k over). I never said I was blase about money or ok to just throw it around, which is clearly the impression you have from the things I've posted. Nor am I greedy or irresponsible with money (the reference to bankers).

I use the "thanks" button profusely, but I'm a sincere person so if I haven't thanked you it is because you haven't helped me at all. Perhaps I have got the wrong impression from your posts, but they felt unpleasant and unhelpful, so if they affected me like that, yes it feels personal even though it isn't. Words have power.

Oh and by the way, the vendor has agreed with the sale, so no they don't have me down as a timewaster, just as I said. That was just another of your judgemental remarks which came out of your cynical view of the things I posted. Thanks button?!! Yep I know where it is.:D

And one final thing, many people, including myself post on here because they have little support and things have not been going great for them. If they get a harsh response they can be driven away from the forums, from the help they need. You may notice it took me a few days to even come back to my own thread, as I couldn't face more mocking. Buying a property is extremely stressful. i don't take it lightly, nor do I take finances lightly at all. It's taken me many years to get to this point, and I'm still struggling. Think before you write.There is a person behind the posts, and someone's personal situation and difficult decisions should not become the butt of anyone's jokes.

dumpallhere

AliceBanned wrote: »

the vendor has agreed with the sale

:beer:

That's £1k well spent!

Hoping that the rest of the process until completion gets over without bumps and hurdles! All the best.