Valuation when buying a house

hifiboy_2

I've agreed for a price of £410,000 to buy a property in South East England. However, an independent valuation via survey is for £394,000 and zoopla reports it to be £387,000. There is no extensions or changes made to the property to increase the value.

1. Do I've an option of re-negotiating the price and could I be overpaying?.

2. What could be the imlpications when I have to remortgae in two years (could the bank undervalue it)

Please advice. Many thanks

eddddy

You have the option to re-negotiate the price at any time for any reason - until you exchange contracts.

And the vendor has the option to refuse to budge on price, if they want to - and look for another buyer.

(Certainly use the independent valuation figure, but not the zoopla figure - as that's totally unreliable.)


When you come to remortgage it, the banks valuer will value it based on what they think they could sell it for, if you default on your mortgage. What you paid for it isn't really relevant,

G_M

hifiboy wrote: »

1. Do I've an option of re-negotiating the price and could I be overpaying?.
You can always renegotiate up till Exchange of Contracts

A property is worth what people will pay. Is it worth that much to you? Do you think if you dropped out someone else might pay that much? If so, that's what it's worth!

If they value it at that time for less than you are trying to borrow, they will refuse to lend/re-mortgage.

2. What could be the imlpications when I have to remortgae in two years (could the bank undervalue it)
The bank will use a sureyor at that time who could calue it higher, lower or the same. My crystal ball is temporarily out of order so sorry, I cannot help.

Please advice. Many thanks

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stator

Ignore zoopla but pay attention to the banks valuation.

If you really like the house and want to pay the price you have already agreed then carry on and go for it but check whether the valuation changes your LTV and mortgage rate.
If you can't afford the mortgage with the new valuation because it pushes you above your maximum LTV then you have no option but to renogotiate.