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Selling home, buyers mortgage valution?
DocHants
Posts: 111 Forumite
Curious to know does our property have to be worth the price that was offered, or only the value of the money the buyers are borrowing?
If we accepted an offer of 100k, and the house was valued at 95k, but the buyers had a 10% deposit so only wanted 90k, would the bank still lend them the money??
If we accepted an offer of 100k, and the house was valued at 95k, but the buyers had a 10% deposit so only wanted 90k, would the bank still lend them the money??
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Comments
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They might - but as a purchaser - I would not want to give you 5k - over what the house was worth.
If a valuer said the house was worth 95k - then I don't think anyone would offer you more
(Everytime I've bought a house - I've had a fair deposit - the 'valuation' has always found the properties to be worth exactly what I've offered..I did wonder if the valuer -was in the camp of a house is worth what someone will offer.. although I have read on here of people being told properties are worth less than they have offered.. I've never heard of a valuation being worth more?!)0 -
What a property is worth to a buyer, can be perhaps more than the value of it.. location, convenience.. et can all add value above and beyond the cost of the bricks and mortar....
Ive looked into what other almost identical properties (build and layout, not internal d!cor and condition) have gone for on the same estate, so I think I have a good idea what mine should be worth... but you never know with surveyors! I also had my property valued 2 years ago for a re-mortgage, and I ve resolved some issues they pointed out, and Im sure the market has improved since then.
Whilst I appreciate that at the end of the day, the lender doesn't really care about any of this.. a buyer may not want to lose out just for the sake of a couple of grand, if they have found the house they want in the location they want. I know I wouldn't want to miss out!
Ill just have to keep my fingers crossed!0 -
What a property is worth to a buyer, can be perhaps more than the value of it.. location, convenience.. et can all add value above and beyond the cost of the bricks and mortar....
Ive looked into what other almost identical properties (build and layout, not internal d!cor and condition) have gone for on the same estate, so I think I have a good idea what mine should be worth... but you never know with surveyors! I also had my property valued 2 years ago for a re-mortgage, and I ve resolved some issues they pointed out, and Im sure the market has improved since then.
Whilst I appreciate that at the end of the day, the lender doesn't really care about any of this.. a buyer may not want to lose out just for the sake of a couple of grand, if they have found the house they want in the location they want. I know I wouldn't want to miss out!
Ill just have to keep my fingers crossed!
Given that we are in exactly this boat as a buyer we are looking at all our options. I think the undervaluation on our part comes from not understanding the garden size and what that means to us. Unfortunately ours got complicated by the house we're looking to buy having a roofing issue that must be fixed first.
This includes negoiateing - they are likely to come back and try negotiate, such as trying to go 50:50 on the delta. As you say, its down to location - some will be willing and able to pay the delta, others wont.
The other option is they walk away, and you lose the buyers and have to start the process again.0 -
Lender will offer based on the lower of purchase price, or valuation.
If the property is worth less than the agreed price, the buyer will have a decision to make on whether to increase their deposit to pay "over the odds".I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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