House undervalued

Slayerx

Hi so I'm currently trying to buy a house.

It was on the market for 70k and I managed to agree 67.5k pending valuation etc.

I had a valuation done and he could only value at 66k due to some work that needs doing and that he couldn't find any comparable property sales.

Not a million miles away.

The issue is that if they drop the price I can't afford the work that needs doing.

Anyone had any luck getting work done and a drop in price?

It has been on the market since last Aug so I'm hoping the vendor realises if I walk away and they don't get any interest they will have to drop the price and get the work done to sell.

anselld

They aren't going to drop the price *and* get the work done.

If they are happy to drop the price then take it as-is and get the work done as and when you can afford it.

Slayerx

Sorry I should of been clearer the work has to be done otherwise the lender won't lend.

No firewall in the attic.
Issue with the chimney stack.

anselld

Slayerx wrote: »

Sorry I should of been clearer the work has to be done otherwise the lender won't lend.

No firewall in the attic.
Issue with the chimney stack.

So you want the vendors to do the work then. Once it is done (assuming the vendors agree), the valuer will hopefully agree the £67.5k and you can proceed at the agreed price.

Slayerx

I'm hoping so I just hope the vendor understands that if they don't do the work they can't sell not just to me but anyone.

The vendor isn't local.

Would it be expected of the EA to get quotes or possibly me so we can see how much the vendor will have to spend?

That's the only downside I've found to the property been vacant and the vendor not been local my only contact has been the EA.

kinger101

Just make sure the vendors know that the works needs to be done in order for you to get the mortgage. They may decide to get it done rather than losing the sale.

They would be able to sell to a cash buyer, or perhaps a buyer whose mortgage company took a different view.

anselld

Slayerx wrote: »

I'm hoping so I just hope the vendor understands that if they don't do the work they can't sell not just to me but anyone.

The vendor isn't local.

Would it be expected of the EA to get quotes or possibly me so we can see how much the vendor will have to spend?

That's the only downside I've found to the property been vacant and the vendor not been local my only contact has been the EA.

I suspect the EA will try to persuade you to use a different mortgage company. Lack of firewall and "some chimney work" would not normally render a property unmortgageable.

martin1959

Surveyors normally work on a % tolerance. Eg if PP is £80k and they feel it is worth £78k, provided this is within their companies tolerance, of say, 3%, then they will agree it at £80k. If it is outside of their tolerance, they will value it at what they think it is worth.


Hence I used to tell customers that just because a surveyor valued their £300k property at £300k, it does not mean it is worth £300k. They may actually think it is worth £286k, but because it is within the 3% tolerance they value it at purchase price.


Have you asked the lender if they will impose a retention? IE they agree your full loan, but withhold, say £2k, until the remedial works have been carried out. You would have to fund these your self (family/credit card/loan) but when the work has been done (normally asked to proved invoices to prove) the withheld 2k will be released.


You mention other purchasers will find the same problem....not necessarily....they may only have a basic valuation and the surveyor from their lender may not inspect the roof void (not all lenders require a roof void inspection, only an external appraisal of the roof).

MisterB1959

buy it, use a no 0% interest credit card for 12 months to do the work, remortgage if necessary after six months

ognum

Of course they can sell it, not everyone gets a survey, not everyone needs a mortgage, not all surveyors value the same.