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New build - survey valuation lower than asking/offer price
wadd3rs
Posts: 1 Newbie
Hello
We are in the process of buying a new build. The mortgage has been confirmd but being held up due to the survey valuation being lower than the asking/offer price (only £5k lower). Clearly the lender is not prepared to agree a mortgage for more than the house is currently worth.
We were surprised to find ourselves in this situation as we were pretty confident that the survey of a new build of all things would go through seamlessly but we've found the opposite to be true.
We've gone back to the house builders, who are looking for completion by mid-Dec and asked them to reduce the asking price but they're playing hard ball. First they disputed the survey results but have been provided with the necessary justifications. They asked us to fork out the £5k difference and have now said they will meet us in the middle if we pay £2.5k. We negotiated hard at the start and got a lot of optional extras FOC, which is the basis of their argument in asking us for the extra money. We're sticking to our guns in insisting they reduce their asking pric otherwise we'll walk but we're still facing a lot of resistance from them.
Is it common for house builders to be this hard or are their profit margins really so narrow that a price reduction of only 1.9% can break the bank for them?
Has anyone else experienced anything similar?
Many thanks
We are in the process of buying a new build. The mortgage has been confirmd but being held up due to the survey valuation being lower than the asking/offer price (only £5k lower). Clearly the lender is not prepared to agree a mortgage for more than the house is currently worth.
We were surprised to find ourselves in this situation as we were pretty confident that the survey of a new build of all things would go through seamlessly but we've found the opposite to be true.
We've gone back to the house builders, who are looking for completion by mid-Dec and asked them to reduce the asking price but they're playing hard ball. First they disputed the survey results but have been provided with the necessary justifications. They asked us to fork out the £5k difference and have now said they will meet us in the middle if we pay £2.5k. We negotiated hard at the start and got a lot of optional extras FOC, which is the basis of their argument in asking us for the extra money. We're sticking to our guns in insisting they reduce their asking pric otherwise we'll walk but we're still facing a lot of resistance from them.
Is it common for house builders to be this hard or are their profit margins really so narrow that a price reduction of only 1.9% can break the bank for them?
Has anyone else experienced anything similar?
Many thanks
0
Comments
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The big house builders usually won't reduce their prices much, so what you're experiencing is pretty normal. Brand new houses are always difficult to value as there is no sales history for a new estate.Changing the world, one sarcastic comment at a time.0
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What a builder will and won't do on price is often related to whe their year or half year end date is. Coming up to that point is when they are most keen to swop stock for cash and you can benefit.
Ask yourself how many hours you have to work to pay the tax to put 2.5k in your pocket.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
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