New Build- Valuator Devalued

nithincv014

Hi

This is my first post and need your help and advise.

I am planning to buy a new build property from Bett Homes, NE129EL.
Its 3 bed semi detached, I just love their design and interiors most of the stuffs is already included, so less hassle.
It was £205,000, then they reduced it to £190,000 which I couldn't resist so paid £100 booking fee.
Their mortgage advisor said he can get it approved from Santander for 3% interest on help to buy scheme, everything was so good until now and just last week I received a call from my advisor stating valuator has devalued the price to £175,000 and they want to get the second valuation done for which they are asking me to pay the fee and Bett Homes have said that they will refund it later after the purchase.

Not sure what should be my approach? Please help me.

Should I stick to £175,000.
Should I walk off, I don't want to, because I just love the build and interiors.
Should I pay for the second vaulation.

dgtazzman

I had the same situation with a 3-bed Barratt home last year. Asking price was 210k, valuation came in at 200k (or maybe slightly less, can't recall).

Asked for the price to be dropped to 200k to match the valuation, but the builder refused and demanded I try to start the mortgage process over again with another lender, in the hope to get a better valuation, expecting me to pay for it all.

They did try to get the valuation overturned for the original offer, but failed.

I refused to pay out a load of fees again out of my own pocket to benefit the builder in the hope to maybe get a better valuation (which wasn't guaranteed anyway) and they became extremely unhelpful, even rude/hostile at times, so in the end, I walked away. They had to delay the construction of the house as it stood unsold for a year after that ^^

Ended up buying another house 2 streets up from a different builder, slightly bigger house with a bedroom more than the Barratt house for 200k and I couldn't be happier about how it panned out.

I'd tell them they are free to get a new valuation done, but that you expect them to pay for it upfront, or give a written agreement that it will be repaid, even if the sale falls through at a later stage, as this valuation is purely for their benefit. Failing that, if they won't sell at 175k, walk away, there will be another house, eventually...

becominganobsessivesaver

175k seems like a reasonable, even generous, valuation for a 3 bed semi in North tyneside (if you take out the coastal areas). We bought 2 years ago and with a 200k budget had several 4 bed detached options, including newish estates in forest hall and holystone. Do you have to get a new build, there are still some good prices on slightly older and bigger properties. They may not have the show home glitz, but you can add that, plus more, with the money you'd save.

lee111s

I knew that Bett had priced those houses too high for that area so I have to say I'm not surprised.

Have you considered looking at houses on the new estate in Willington quay? What about Northumberland park? Or as mentioned above Holystone? There's also some new build homes near hadrian park that are still for sale too that you could check out.

Chances are, even if you try a different lender they may well use the same firm of surveyors, who will more than likely value the property he same again.

lee111s

Just to add, the surveyor hasn't "devalued" the property, it's simply that the builders have priced it higher than it should be.

The other option of course is to find the additional £15k to proceed with the sale.

nithincv014

Thanks everyone for your reply.

I received an email from Bett Homes, stating they will refund the valuation fee on purchase, and I had to ask what happens when there is no purchase.No reply on that yet.
I have already paid £99 towards booking fee and £250 towards solicitor fee who is also from their side.

They had overpriced these properties and had already reduced by 15,000, initial price was £205,000, when they reduced it by £15,000 I thought its the best deal and now when I see other houses around this area its not that expensive most of the 3 bed semi's are between £140,000 to £160,000. I would say another 15k for their interiors and appliances and flooring, so £175,000 is the best price.

Lets see what they come up with, I will keep you all updated.