House purchase low valuation

Davesnave

billynbk wrote: »

Can I make a complaint to the property ombudsman ?

No, people can put their property up for sale at whatever price they like. It's up to you to decide if it's worth it, or not, before you spend money.

Nowadays, all the tools you need are freely available on the Internet. It's never been easier!

Thrugelmir

billynbk wrote: »

I was essentially attracted by the rental yield on the property, about 13% and the EA seems to be justifying the high offer price based on the current yield

So before making an offer, you confirmed this assertion I assume.

Was the property valued for a residential mortgage?

DRP

billynbk wrote: »

I am feeling like walking away. I appreciate that valuations can be lower than the actual offer price but the £55k difference is staggering. The EA says that on average that valuations are 15-20% lower than the actual offer price.

I assume from your posts that you buying to let? This is a huge investment/risk so you need to stop trusting the EA/seller.

He has overvalued the house, he sounds like he's massively over-estimated the yield, he has a vested interest and it sounds like he's been playing you from the start...

billynbk wrote: »

Thanks for the advice.

Walking away would be better rather than letting EA get the price he wants. But the painful lesson will be losing the survey fee and some legal costs.

Can I make a complaint to the property ombudsman ?

I don't see anything that you can justifiably complain about.

browneyedbazzi

billynbk wrote: »

Thanks for the advice.

Walking away would be better rather than letting EA get the price he wants. But the painful lesson will be losing the survey fee and some legal costs.

Can I make a complaint to the property ombudsman ?

Do you want to complain about the EA for marketing the property at a price higher than the valuation? I don't really think you have grounds for a complaint - the 'price' a property is marketed for is what the seller wants, it isn't an assertion of the value of the property. It's up to buyers to do some research on the property/local market to decide what to offer. If you offered based on the asking price and what the estate agent said about rental return without doing any research then you have yourself to blame.

ValHaller

billynbk wrote: »

Thanks for the advice.

Walking away would be better rather than letting EA get the price he wants. But the painful lesson will be losing the survey fee and some legal costs.

Can I make a complaint to the property ombudsman ?

Of course you can complain to the property ombudsman. You can complain to the privy council.

But neither are likely to uphold a complaint unless you have something substantive. Asking an incredible price and getting away with it is what the Estate Agent is supposed to do. Bear in mind that you are not the customer of the Estate Agent - the seller is the Agent's customer. Don't take this any further until you really understand that point.