Days of Guzzumping back. How to deal with it?

eagerftb

We have been guzzumped on the property we offered for.Offer was accepted and after a few weeks seller turns around and says he now wants a higher amount.

Should we even bother to think in that direction or tell him to stick it.

How does the Mortgage and valuation process work in such cases?
As the Bank valued it at the original asking....Really disappointed.

Experienced board members please advise.

System

The mortgage process is simple. If the bank says it is worth a maximum amount of X, anything over has to come from the buyer.

This is what makes it difficult for people to buy in gazumping at over market value. They not only need an mortgage but they need cash to make up the difference.

Road_Hog

Walcott wrote: »

The mortgage process is simple. If the bank says it is worth a maximum amount of X, .

Doesn't the mortgage company always value the property at the selling/agreed price? How many surveyor's valuation come in at over the asking price?

eagerftb

And that's the issue. If they have valued it at a certain value, there is no chance they will go higher than that if the asking increases or is it just matter of asking them to value again?

ACG

The valuer will value the property at the purchase price or the valuation - whichever is lower.

A new valuation would need to be instructed and this will most likely be a cost. To be completely honest, where things like this happen i would tell them to take a running jump. Once something is agreed, its agreed (in my mind) stupid games like this and i would not want to deal with them.

Any other walk of life a verbal contract is just the same as a written one but when it comes to negotiating on a house price it seems that it is not the case.

Dukesy

Road_Hog wrote: »

Doesn't the mortgage company always value the property at the selling/agreed price? How many surveyor's valuation come in at over the asking price?

I could be totally wrong, but agree here. My understanding is that, unless the property is judged to be worth less than the agreed price, the valuation normally comes in at the agreed price.

eagerftb

Yes you have that people stick to what they agree to but greed has no limits. Also my question is why will the valuer who valued something at x a few weeks ago value it any higher in just matter of weeks or does it mean approach a different lender.

Linton

Why is he asking for more? If he has a good reason he will tell you, probably in detail.

1) Trying it on: You cant trust him not to do it again - say no, or perhaps reduce your offer.

2) He really has had a higher offer: Well nothing is agreed until exchange of contracts so you have to decide whether to enter a bidding war.

3) His purchase has risen in price or his mortgage valuation has come in too low: If you really want the house you could offer to split the difference.

Of course if you havent got the money you can only say no. If it's the house you MUST have then you must have it.

eagerftb

Most likely because somebody listed a similar property higher than this one.

Kayalana99

I'd drop your offer by £500 or even more if the house was in the 200k + region and tell him to take it or leave it...personally.

Dukesy

eagerftb wrote: »

Yes you have that people stick to what they agree to but greed has no limits. Also my question is why will the valuer who valued something at x a few weeks ago value it any higher in just matter of weeks or does it mean approach a different lender.

Because, as I understand it, the valuation coming in at the agreed price simply means the valuer has said that yes, it is worth that. It may be worth more, but all the mortgage company wants to know is that they are lending as safely as possible, and that the agreed price is sensible.