Valuation - Genuinely shocked

seriousDFW

ILW wrote: »

A new build will nearly always devalue as soon as moved into as it no longer carries the premium for being new. Valuation has to be based on resale.

How can this be true? If it were, nearly all new build valuations would be below the price being paid by the buyer, which surely can't be that regular an occurrence else no new builds would be sold to buyers using a mortgage?

We have just bought a new build and its valuation by the mortgage company was the same as the asking price which is the price we'd agreed to pay. Am I in the minority of new builds which aren't expected to decrease in value? And if it is almost certain to decrease in value, why has the mortgage's valuation been for the asking price?

swanny78

seriousDFW wrote: »

How can this be true? If it were, nearly all new build valuations would be below the price being paid by the buyer, which surely can't be that regular an occurrence else no new builds would be sold to buyers using a mortgage?

We have just bought a new build and its valuation by the mortgage company was the same as the asking price which is the price we'd agreed to pay. Am I in the minority of new builds which aren't expected to decrease in value? And if it is almost certain to decrease in value, why has the mortgage's valuation been for the asking price?

Exactly, all new houses would be unmortgageable unless the person was willing to foot the difference. in this case £25k is out of the question for me and I expect for most people.

ging84

if the house buyer is confident they can get a buyer at the full price, they shouldn't be able to claim much if any of a deduction off of your reservation fee

swanny_78

ging84 wrote: »

if the house buyer is confident they can get a buyer at the full price, they shouldn't be able to claim much if any of a deduction off of your reservation fee

Sorry ging84 not sure what you mean. Can you clarify?

WellKnownSid

swanny_78 wrote: »

Sorry ging84 not sure what you mean. Can you clarify?

He means when you pull out - they won't need to keep any of your reservation deposit because other buyers are already banging on the door waving wads of £50 notes demanding to pay full price.

They can't have their cake and eat it.

hcb42

It's a shame new homes don't come with an "Aim to Pay" guideline, like new cars do..!

I would offer £325K or walk away.

Some will be able to cover it, like the Church did, if the LTV is less, or it is the home of their dreams, which I am sure it is yours, but at the right price..

swanny_78

hcb42 wrote: »

It's a shame new homes don't come with an "Aim to Pay" guideline, like new cars do..!

I would offer £325K or walk away.

Some will be able to cover it, like the Church did, if the LTV is less, or it is the home of their dreams, which I am sure it is yours, but at the right price..

Thank you hcb42. I think you are right. I'll see the post survey challenge thru see what happens then do as you suggest.

kingstreet

I bet there were a few sharp inhalations on the site when they found out the surveyor was coming from Connells.

The only downvaluation we've had on one of our sites was a Connells surveyor for Coventry BS.

We managed to get it overturned after about ten days. We simply provided the completion statements for six other properties in the same building which had the same or a higher spec.

Funnily enough, the same surveyor had done the same a couple of months earlier, so the groans when they got the access call could be heard miles away.

I'm sure the developer will be anxious to provide you with the evidence of the sales which support the agreed purchase price.

swanny_78

kingstreet wrote: »

I bet there were a few sharp inhalations on the site when they found out the surveyor was coming from Connells.

The only downvaluation we've had on one of our sites was a Connells surveyor for Coventry BS.

We managed to get it overturned after about ten days. We simply provided the completion statements for six other properties in the same building which had the same or a higher spec.

Funnily enough, the same surveyor had done the same a couple of months earlier, so the groans when they got the access call could be heard miles away.

I'm sure the developer will be anxious to provide you with the evidence of the sales which support the agreed purchase price.

Thanks kingstreet, I'm hoping for the same outcome via our broker. Fingers crossed at least. I hope the developer is keen to prove the house price us correct. They seemed a bit layed back when I spoke to them today as if they didn't feel the need to justify to anyone.

CluelessFTB_2

How frustrating for you swanny - have you looked at the sold house prices on rightmove / zoopla?

I hope you get it sorted either way.