valuation too high, please advice.

Tiger_man

Thanks to everyone who will be sending their suggestions in advance.

I am a first time buyer. I found a property I like. It was in the market for 90K and my offer was accepted at 87.5k, lender has approved my application. I had my home buyer reports done. The only concern I have is that the survoy said the value of 87.5k is too high and he will only value the property for 85k in his own opinion.

He recommend I re-negotiate the price. Should I act upon this or not?

My mortgage broker said is nothing to worry about that they get this a lot. And the different is not too far from what I am paying.

Your opinions are highly appreciated. Thanks

G_M

Is the lender approving your mortgage application, or reducing the amount you can borrow?

You can try renegotiating price if you want but don't hold your breath.....

davidmcn

2.9% over his valuation is pretty insignificant - valuation isn't an exact science.

Pete9501

G_M wrote: »

You can try renegotiating price if you want but don't hold your breath.....

Are the MA and EA completely separate from each other or do they work in the same office? How good are you at poker?

There is possibly a £2.5k bonus if you can pull this off, so got to be worth a try. Use the evidence from the valuation report to your benefit afterall you paid for it.

stator

Does the difference affect your LTV? If you're borrowing at 95% the difference could stop you getting the mortgage. If you're borrowing at 90% the difference could push you into a higher rate mortgage.
If it makes no difference to your mortgage then it's just a question about whether you want to bother trying your luck at saving money and risking annoying the sellers or if you just want to get the sale through and completed.

Flashmanchop

as others have said it will likely affect your LTV and may change the product available.

And you should really try and negotiate as otherwise your like to have to stump up the extra money.

kingstreet

Is the valuation on the mortgage report and valuation the same as the homebuyer's report (ie different surveyors - same valuation) or are you saying the same surveyor who did both is only valuing at £85k?

If this is the lender's surveyor, your lender is going to take the valuation as the figure on which it will lend and you'll have to increase your deposit by £2,500 to be able to continue.

Tiger_man

Thanks all for quick reply.

To stator,
The different does not affect my mortgage but I want to spend my money wisely and reasonable.

To Pete 9501,
The MA and EA are separate from each other and I am not good in poker lol

To Davidmcn,
2.9% is a lot of cash for right now.

To G_M
the mortgage application has been approved.

There is also a few things that required fixing base on the report although I do expect the property to be in a perfect condition. Because it is under 40 years old in Nottingham area.

Tiger_man

Reply to kingstreet,

The valuation of the home buyer report is 85k and mortgage lender one said is reasonable but maybe is because my deposit is high. I am putting down 30% for the purchase price.

Thrugelmir

Tiger_man wrote: »

There is also a few things that required fixing base on the report

Hence the suggestion to lower your offer.