Made an offer - worried about low valuation

Fizzymartini

I'm buying in London, and the EAs have admitted that the price increases are even taking the surveyors by surprise. Apparently they've had a few surveyors ring them up asking if the prices are 'for real'!

It looks like, in my area at least, local surveyors are keeping abreast of the crazy inflated prices, and giving it the benefit of the doubt - they certainly valued the property I'm proceeding with at the agreed price, even though it's substantially higher than any other flat has sold in the same block (given it's in far worse condition).

To be safe, I would get the free valaution and then get a HBR independently. The HBR would then be solely commissioned by you for your own use, as opposed to the surveyor also acting for the lender; makes it easier to follow up with any enquiries.

northern_at_heart

Thanks for all your helpful comments. We'll keep our fingers crossed that it will work out one way or another.

Now I'm just worried about being gazumped! It's still showing as available on Rightmove (although SSTC on the EA's own site) but they did say it took a few days to update. Tempted to get a friend to call up and ask to view it, but worried it might get a bit awkward when they ask for contact details etc.!

Does anyone know how long a YBS valuation will take, and whether they actually look at the house or just do it from their desk using sold prices etc.?

northern_at_heart

So... a quick update: we got the valuation back today, £340K. This is 30 grand less than our offer (and the asking price), or 8% less.

We've gone back to the vendors via the EA to offer a compromise. We've offered to increase our deposit and pay £350K. Now the nailbiting really starts!

cattie

Good luck, hope vendors realise that refusing to renegotiate might put them in exactly the same position should somebody else offer on it & it fails to reach their high expectations when surveyor values.

Logan008

I think people need to step back and take a deep breath at the moment. the market may look good, but its only because of Help The Bubble schemes using tax payers money to indebt a new generation. I wonder if one day we will look back at all this and decided to take those responsible through the legal system for fraud.

northern_at_heart

Eek, so the vendors have come back and offered to meet us in the middle at 355K. That's 15K less than the asking price/offer and 15K more than the valuation. In other words 4.4% more than the valuation. Too much? I really can't decide...

We have the cash and really like the house but I'm just worried about the implications of overpaying. My brain hurts...

cattie

If you like the house & plan to live there for many, many years then overpaying doesn't come into it.

When I bought my current home I paid a little more than I'd have liked , especially as it needed a lot of refurbishment work & vendors were not willing to come down on price very much. However, I knew it was where I wanted to live & that I was likely to be here for the rest of my life. And I knew that in having the work done, I'd be able to make it the home that I wanted it to be internally & to suit my needs perfectly.

Now the market has risen my place probably would bring around £60k more than I paid for it, helped of course by the refurbishment work that I had carried out. But in paper terms, I've certainly not lost out or overpaid.