Valuation lower than agreed price

magpiecottage

I suspect the vendors have overpaid themselves and are now looking to offload the problem onto somebody else by selling at significantly above the market price.

The OP will be wise not to fall into that trap!

hazza74

Yep they have overpaid, we have offered 100k this morning and I have told the EA they have until friday to make a decision.

If not I wish them luck.

RobertoMoir

adindas wrote: »

Now, good to have RobertoMoir, kingstreet to comment on this ...

I could point out that the plural of anecdote is not data. If you insist on believing in anecdotes I could point out that I once agreed with my brother to buy out his share of our of our parents home (his 50% inheritance, to go along with my 50% inheritance) and we agreed the property would probably be worth £120k as there was a lot of work to do to the place and it was at the start of the big price crash in 2008. My lender valued the property at £125k because they felt the work that needed to be done to bring the property up to standard affected the value less than my brother and I had thought...

But in the end... I'll simply refer you to the update by Hazza.

Alias_Omega

hazza74 wrote: »

Yep they have overpaid, we have offered 100k this morning and I have told the EA they have until friday to make a decision.

If not I wish them luck.

if you want the house, you will go around knock on the door and present them with the house valuation that you have. Leave your mobile phone number and let them be.

This will remove the Estate Agent, and remove any chance of any kind of Chinese Wispers...

You might be the only interested buyer, or you could be a number of buyers... Go knock and find out..!

RobertoMoir

alias omega has a fair point. It's not like you'd lose anything by trying Hazza, assuming you still like the house and just want to work on the valuation.

I suspect it'll come down to splitting the difference though, how much room do you have to do that if the bank will only fund so much.

hazza74

I have just spoken with the EA and he is deluded, the houses he sent for comparables are around the same price, but are in different streets, current values for these streets are;

Roland Avenue Zed-Index £106,951
St. Lukes Road Zed-Index £108,320
Wheelwright Lane Zed-Index £130,259
Beacon Road Zed-Index £100,436
Hen Lane Zed-Index £109,651

Kirkdale Avenue Zed-Index £90,949 <--Our house

I forwarded this to the EA and still he keeps saying 'theres 2 beds thats sold for more blah blah blah'

He said can't you go with another lender and have a different valuation done? Well no because we need to find a house and we don't want another search on credit report.

The surveyor has said no other RICS Surveyor will value it at 100k, he said he was generous.

So thats the end of that then, the vendors have already been told our offer and the EA is going to recommend that they refuse, put it back on the market and in his words 'I can almost guarantee the value would be substantially higher'

EA has made me rather angry
So back looking again

leveller2911

hazza74 wrote: »

EA has made me rather angry
So back looking again

Sounds like you have had a lucky escape.

Not sure if you remember the 80's boom where Estate Agents went around in Porches,wore red braces and smokes cigars whilst drinking bubbly. They were spivs and chancers then and they still are sadly.

Good luck and you will find the home thats right for you.

dawyldthing

hazza74 wrote: »

Why would it seem unlikely? I don't get how the valuation is 17% or so less than the price! I mean how did the estate agents value it what they did, they are adamant that their value is correct. I understand if the valuation for a couple a grand under but nearly 20k? How can they be so wrong...

Estate agents are only for the seller. They will market it for whatever they think the seller wants to get it on there books. I got mine down 2500 due to the surveyor as he said it was worth 58k when the house was originally on the market for 71k, then down to 68k. I'd said I'd pay 60500. In the end I paid 58k I'd shake his hand and say thank you very much as he has your interest and the banks in mind.

(i'm not rich, just using this as a true example) My dads mum owns a house in the middle of nowhere and had valuations between 300k and 450k. I think in the end my aunty (as shes now in a nursing home) got one to agree to market it for 500k and its still on the market as it isn't the market price, but to her she thinks its worth 500k. They wanted it on there books so agreed and its been going on for at least a year already.