New build undervalued----help!!

Gutchy1

Sparx wrote: »

Our surveyor through Nationwide valued our new build 5% lower than the sale price. The developer reluctantly agreed with this and sold at the reduced price. Although they are still selling them at full price to everyone else.

Don't rub it in!!! Builder won't drop to constant interest in the site still....... Our fear is that we have already had to extend the reservation on the plot due to Santanders long winded decision! Don't want to lose it!!

Jennie2827

Fingers crossed.....do post the outcome and I hope it's a happy one!

amnblog

Gutchy1 wrote: »

Don't want to pay more than its worth...builder won't drop as the other plots have sold at the same price and valued at that price also all sold within the last 2 months!

Not all plots are created equal.

Who are they going to sell to if the valuer does not agree with their assessment?

The outcome of this one will be interesting.

userone

I work on the Help To Buy scheme.

The builder can't sell you a property less than the valuation under the rules of the scheme. Your conveyancer should spot this.

ethank

I think in this case the valuation is worth less than the sale price. The builder does not have to accept the offer if they don't want to.

Jennie2827

Is there any news as to the outcome from e serv?

Thrugelmir

Gutchy1 wrote: »

They have just sold all other plots for the same amount of money.... All valued at asking price.....only plot to be undervalued was ours,

Hence my comment.......... What incentives were thrown in as sweetners.

Gutchy1

Thugelmir- Incentive was 5k towards stamp for us, not sure on the others?
Jennie 2827- No news!!! Through social media managed to get in touch with the e-surv director who kind of agreed that it 'seems' that the incorrect comparables have been used. However are not willing to help unless the bank decide to re-instruct!! So annoying.

To add insult to injury the house next door to the one we reserved was just valued at 275K thats 25K more than the valuation of ours!This house is the same house with slightly smaller rooms, smaller garden but does have a side gate.....Gold plated maybe??

dunstonh

Thugelmir- Incentive was 5k towards stamp for us, not sure on the others?

These incentives are paid for by artificially making the house price more expensive.

New houses do price at a premium but the minute you move in, you would not be able to sell it at the same price you bought it for. Often losses of 15% are the sort of range.

Others selling at agreed prices may well be because the people buying them are putting bigger deposits down and are not hitting loan to valuation limits.

Gutchy1

dunstonh wrote: »

These incentives are paid for by artificially making the house price more expensive.

New houses do price at a premium but the minute you move in, you would not be able to sell it at the same price you bought it for. Often losses of 15% are the sort of range.

Others selling at agreed prices may well be because the people buying them are putting bigger deposits down and are not hitting loan to valuation limits.

Thanks, fully understand premiums on new builds, just cant believe the inconsistency in the valuation amount.

Surely the valuation is done on what the property is worth and whether your borrowing 95 or 5% it doesnt matter??