Valuation for mortgage

Rosy_Apple

Hi all,

We have had an offer of £245,500 accepted on a house which was on the market for £245,000. Another couple were also bidding hence why we went just over asking price.

I am now concerned that the mortgage valuation is going to come up short. How common is this?

I have tried looking at Zoopla and they are currently estimating the value to be just under £241,000; however I am not convinced this is very reliable. A house about 10 doors down was sold in March this year for £208,000 however this was in a poor condition from the photos on zoopla and the house we have offered has been modernised and had walls taken out etc. It was also mid terrace and the one we have offered on is end of terrace (albeit only by about 5 inches!). Our one also has had a porch added. Prior to that the last sale of a similar house was in 2011 and that was for £230,000.

Thanks in advance for any advice.

RA

NB: I had originally posted this on the buying/selling/forum however I thought it might fit better here as it is regarding the mortgage.

ACG

Its a bit difficult for anyone here to answer.

The valuer will look and either say its worth the purchase or its worth £xxx. You then have a couple of options, try to negotiate the price (as the other people who made an offer will be in a similar position) or to rearrange your finances accordingly if its possible.... or a combination of the 2.

Until the val comes back you are just second guessing.

Rosy_Apple

Thank you for your reply.

As you can probably tell by my posts I am a nervous FTB!

StuC75

wait as see what happens, if it comes in lower look to renegotiate..

amnblog

You've got excited and if you want to pay more than the property is worth, it is not advisable but it a matter for you.

Be aware that the mortgage will be based on the value if it is lower than the purchase price.

Therefore on a 90% mortgage product with a £245,000 valuation you can borrow £220,500 and will need to put £25,000 down.

_Andy_

Zero point speculating on the outcome.
Wait and see then negotiate if appropriate.

Rosy_Apple

Thank you everyone for your advice.

ACG

Estate Agents are there to get as much for the property as they can. They may have pounced on the fact your a first time buyer and been able to get the price up.

This could be a good thing if it does come back downvalued (thats the terminology when the property comes back at a value less than the price you offered). It allows you to go back with a valid excuse to negotiate the price.

Rosy_Apple

Thank you- guess it is a game of wait and see for now.