Valuation of a new house

IHateDida

We are now told that the market value is based on the current stage of completion! But all they have to do is connect to the services, include the bathroom suites and finish building the garage - is this really going to add £50k to a property? I am sooo angry as the report didn't state that it was a valuation at the current stage - we had to phone up the surveyors to find this out. All it stated was the market value of £180k.

But what is the guarantee that it will be worth £228,500 when we actually end up purchasing the property? Do we risk it? I am just so confused. Has anyone ever had this happen before? Thanks.

Doozergirl

Valuers are really annoying. LOL

The fact that the hosue is not finished will affect the valuation quite considerably because the house is not desirable enough and is also (really) unmortgageable without bathrooms.

See how it goes. The houses you showed us, I can't see why the house wouldn't be worth what you're paying.

IHateDida

Does anyone think I have a case for offering a bit less ie. xk based on the fact that a. the building firm said that I MUST exchange by the 16th July - this hasn't happened yet as they were late sending the contract through to my solicitors, and b. they are further behind finishing my house than they are the other 2 which are exactly the same - both of which haven't sold yet - for no other reason than their former site foreman decided that this was the best thing to do! (they have since sacked him and got another!!).

Do you think if I say that after the hassle and uncertainity of valuation (as they should have finished the house nearly by now and it doesn't look likely in the next 3 weeks), I will pay xk, and if not, I will walk away, they will bite - they only have interest in the other 2 similar houses but no one else has put down a deposit - and they are amongst the last 5 houses on the development of 50 to go?????? What would anyone else do?

cats!

Hi IHateDida!

Guess it depends on whether your heart is ruling your head! If you needed to sell soon after moving in can you take the hit of negative equity?? (How very 1980's!).

I'd be inclined to offer the price given by the revised valuation and at a push go another £10 - £15k on top if you really wanted the place!

It would be upsetting to walk away when you've chosen a new home but there will be other houses if this one doesn't happen!

Good Luck!

Doozergirl

I'd try it. They can only say no.

But knowing now that the valuation was for current condition I wouldn't panic about the final valuation

BOOTNECKDRIVER

Hi there
Myself and partner are on the process of doing a part exchange on a new build with Barratt Homes, Great discount great incentives and a fair price for our property.
When you first say yes to wanting the house you have to phone a company called "NEWHOMES Mortgage helpline" to get an affodabillty check, not a problem never heard of it before but done it to keep the ball rolling.
However when we went to sign the reservation forms we are told that we must use the afformentioned company to get us our mortgage even though we alredy have a lender.
If we use our own lender and they cant get the monies through within the 28 day time scale then we will loose our deposit our incentives and the developer will place trhe house back on the market.
But if we use their prefered lender and it runs over then we keep all incentives etc. But if we swap lenders then we end up having to pay our early redemption fees.
Talk about being held to Ransom and Dictated to who you can and can't use using the fear factor that they will just sell the house if you cant complete in time, has anybody else had this experience, the Sales lady said that Barratt has been doing it this way for 2 years now.

cats!

If people never listen to good advice ever again - listen now! Don't touch newbuilds with a barge pole!

Thankfully my cousin listened to good advice and walked away from buying one. Once the facade of the "incentives" is stripped away it ain't such a good buy.

Never mind build quality or the (next to useless) NHBC "guarantee", chances are you will experience negative equity if you buy one now. You are often told to use the developer's own mortgage people and solicitor (how impartial is that?) and don't even think about raising any additional enquiries or mentioning a full structural survey!

The odds are always stacked in the developers favour. Never understood why people are so seduced like magpies with the offer of shiny kitchen goods!

You have more legal recourse returning a faulty cabbage!

epz_2

BOOTNECKDRIVER wrote: »

Hi there
Myself and partner are on the process of doing a part exchange on a new build with Barratt Homes, Great discount great incentives and a fair price for our property.
When you first say yes to wanting the house you have to phone a company called "NEWHOMES Mortgage helpline" to get an affodabillty check, not a problem never heard of it before but done it to keep the ball rolling.
However when we went to sign the reservation forms we are told that we must use the afformentioned company to get us our mortgage even though we alredy have a lender.
If we use our own lender and they cant get the monies through within the 28 day time scale then we will loose our deposit our incentives and the developer will place trhe house back on the market.
But if we use their prefered lender and it runs over then we keep all incentives etc. But if we swap lenders then we end up having to pay our early redemption fees.
Talk about being held to Ransom and Dictated to who you can and can't use using the fear factor that they will just sell the house if you cant complete in time, has anybody else had this experience, the Sales lady said that Barratt has been doing it this way for 2 years now.

so the developer is openly screwing you and you ant concerned about the corners they will likely cut when the build the place, i would run then sue for the deposit back making complaints to everyone from the council to competition commission for their practices.

IHateDida

cats! wrote: »

If people never listen to good advice ever again - listen now! Don't touch newbuilds with a barge pole!

Thankfully my cousin listened to good advice and walked away from buying one. Once the facade of the "incentives" is stripped away it ain't such a good buy.

Never mind build quality or the (next to useless) NHBC "guarantee", chances are you will experience negative equity if you buy one now. You are often told to use the developer's own mortgage people and solicitor (how impartial is that?) and don't even think about raising any additional enquiries or mentioning a full structural survey!

The odds are always stacked in the developers favour. Never understood why people are so seduced like magpies with the offer of shiny kitchen goods!

You have more legal recourse returning a faulty cabbage!

The reason why I want a new build is becuase I really cannot be bothered to fit a new kitchen or bathroom into my next house, having been through that and all the expense of it before. I can't be bothered to do any painting, especially woodwork painting, and don't want to put up with other peoples taste in kitchen, bathroom, layout, wallpaper etc... I just want a clean, blank canvas and no work to do! The only way I have found of getting all of this is by buying a new build.

gabyjane

Ihatedida i can see exactly where you are coming from as we are just about to do the same thing, we have just had our valuation and reports back and the house is said as being in very good condition and no probs (considering it's a new build id'e hope not!). We looked round some newish houses and the whole places needed doing out, we haven't the time or inclination to re-furb the place and the thought just depressed me tbh, also working from home id'e lose money aswell. We will have our new shiny kitchen! (magpie i am) and the new shiny bathroom, new floors as we have chosen them ourselves and the house will be exacty as we want it..no spending for the forseeable future.
Good luck with your house and hope it goes well, life is too short to be renovating all the time as far as i'm concerned!