Surveyors value less than offer, cash buyer involved

Survey_problems

Hi all,

I'm after a bit of advice.

Here's the background; 3 ex council houses went on sale. Two were on one street and the third on another street facing opposite.
They were all set at a minimum guide price of 80,000, which went to sealed bids.

We submitted an offer of 96,595 which was accepted. However the survey from the bank came back and advised the property was only worth 90,000.
So are we in a position to negotiate a lower price with the council? Will the council go on the survey price recommended?
There was a cash buyer involved will they approach the cash buyer as we cant afford to find the extra money?

I'm really not sure what are chances are.

Any comments are welcome.

Thanks

macman

Is this in Scotland?
If not, then the council are under no obligation to reduce their price. And you are under no obligation to purchase at £96K-you can withdraw your offer, reduce it, or whatever you want.
But why did you put in an offer so far above the guide price without having a better idea of it's value?

Survey_problems

It's not located in Scotland.
It's a small (ish) Village in Wales and all offers were very close as we know some of the other bidders.
A house on the same road has been sold for 120 (i also know this person!)
120 to 130 is the average price for a house in the area.
So it's a bargain house with the typical new kitchen bathroom to be completed, so we would have a healthy ROI when the time came to sell it.
If they refuse to reduce the asking price will they most likely take the cash buyers offer?

G_M

Survey_problems wrote: »

Hi all,


So are we in a position to negotiate a lower price with the council?
Yes
Will the council go on the survey price recommended?
Not necessarily
There was a cash buyer involved will they approach the cash buyer as we cant afford to find the extra money?
Probobly unless they are stupid

I'm really not sure what are chances are.
Nor am I

Thanks

Like any other seller, the council should (I hope-as a taxpayer it's my property they are selling!) try to get the best price they can.

If you reduce your offer, they will look to see if anyone will pay more than you.

Survey_problems

Unless you live in the specified area, i doubt you'll see much benefit of the sale price! But thanks for that comment anyway.

martindow

Survey_problems wrote: »

It's not located in Scotland.
It's a small (ish) Village in Wales and all offers were very close as we know some of the other bidders.
A house on the same road has been sold for 120 (i also know this person!)
120 to 130 is the average price for a house in the area.
So it's a bargain house with the typical new kitchen bathroom to be completed, so we would have a healthy ROI when the time came to sell it.
If they refuse to reduce the asking price will they most likely take the cash buyers offer?

I'm not sure how you are sure you would get your healthy ROI.

Assuming the average price is 120-130, this means that prices of individual houses are above and below this figure. The surveyor valued the house you offered on at 90, no doubt other houses in the area are worth 150. They are not all going to move to the average price.