How to renegotiate house price

thequant

adeelmpk wrote: »

Zoopla Estimate
£327,184

Value range
£320,274 - £334,094

According to Nationwide price index the difference from Q1 2013 to now is as below. Note I'm inputting 305k, not 295k as the value in Q1 2013 since the property I'm after is End of terrace so adding an extra 10k for that.

A property located in UK which was valued at £305,000 in Q1 of 2013 would be worth approximately £319,706 today. This is equivalent to a change of 4.82%.

To be honest I think you are fine, you are too busy looking at that other property and using it to talk down the price of the one you are buying.


Fact is the property you are buying has been bought recently enough to allow an extrapolation from the price it was previuously bought for.


You cant get a better comparison for a properties price than the price it was previously sold for.


So zoopla is £327k, for your house which was only bought 2 years ago and there is a approx. a 6 month lag in the zoopla estimates. You have nothing to worry about.

adeelmpk

Thrugelmir wrote: »

Surveyor works for the bank not you. You are merely paying the banks costs by opting for the basic valuation.

So counting in all the factors [end of terrace, price rise up until today etc] it seems that I'm paying not more than 10-15k extra so that has certainly halved my worries however I thought that a surveyor would sill take a safer approach and mark the property at lower price brackets for obvious reasons. Didn't quite happen in my case.

Although I agree with your comments that a property is worth however much is someone willing to pay for it but doesn't the surveyors also have to look at 3 historical house prices in the area as a baseline.

adeelmpk

thequant wrote: »

So zoopla is £327k, for your house which was only bought 2 years ago and there is a approx. a 6 month lag in the zoopla estimates. You have nothing to worry about.

Yeah, didn't quite know how zoopla estimates worked as such didn't really had a strong belief in that estimate. But thank you very much for the assistance. I guess I'll just go ahead without a renegotiate at this time.

I hope you manage to get your house price renegotiated without the sale falling through, thanks a million for sharing your thoughts.

Wish you a happy new 2014.

thequant

adeelmpk wrote: »

So counting in all the factors [end of terrace, price rise up until today etc] it seems that I'm paying not more than 10-15k extra so that has certainly halved my worries however I thought that a surveyor would sill take a safer approach and mark the property at lower price brackets for obvious reasons. Didn't quite happen in my case.

Although I agree with your comments that a property is worth however much is someone willing to pay for it but doesn't the surveyors also have to look at 3 historical house prices in the area as a baseline.

As I've recently discovered the valuation survey is not what the name says on the tin. It's about the bank getting it's money back, the larger your deposit the greater leeway for the surveyor.


Because if you overpay it's your deposit which is at risk before the banks money is threatened.

adeelmpk

thequant wrote: »

Because if you overpay it's your deposit which is at risk before the banks money is threatened.

Agree, makes sense.

Kynthia

You'll come accross terribly if you try to renegotiate this late in the day. However if it's going to bug you greatly then you could try to get a smaller amount off using the recent sold price as a comparison. They may refuse, and even if they accept it might cost you in others ways as the goodwill is gone. In my area I could see prices rising before my eyes during Autumn and it was scary. Houses were accepting offers at over 10% more than in spring. I eventually had an offer accepted in November at £10k more than I think it's worth, but I'll live with that as I doubt I'll get anything as good for the price in 2014. Also I'm sure someone else will pay it if we don't, and we intend to stay long term so will it make much difference in 10 years.

adeelmpk

Kynthia wrote: »

In my area I could see prices rising before my eyes during Autumn and it was scary. Houses were accepting offers at over 10% more than in spring

Well I'd happily go and sip a few pina coladas along Bahamas if they keep rising at the same pace :cool2:

I'm paying 24.53% more in comparison to the price it was sold brand new for, 2 year and 3 months ago. That's 66K of equity increase on a 269k investment ! Makes me cringe myself why I didn't do it !!!