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Help please! Home Buyer results through!
pickles13
Posts: 157 Forumite
I have just got through my HomeBuyers report (literally ten minutes ago) and have had to read it in a rush before work. It seems ok, no reds and all ambers look like relatively minor things (mainly things to do with the garden) but can someone explain what this sentence at the end means please...
In my opinion the Market Value on as inspected was:£278000
In my opinion the current reinstatement cost of the property (see note below) is:£175000
I am panicking!
In my opinion the Market Value on as inspected was:£278000
In my opinion the current reinstatement cost of the property (see note below) is:£175000
I am panicking!
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Comments
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What does "see note below" say?
I think it means that if it fell down it would cost £175k to rebuild.0 -
Reinstatement cost is effectively rebuild cost. Say your house burnt down what would the insurance need to pay out to recreate your property?
So the difference between market value and reinstatement cost could be seen as the value of the land/location.0 -
Nothing to worry about. It's like when you take out buildings insurance and you insure against the rebuilding cost if it was to be blown away in a storm rather than the value of it with the land it's sitting on.
What price did you agree to buy? aroundabout £278K?Gather ye rosebuds while ye may0 -
It was on the market at £285, our accepted offer was 278. So does this sound like the bank will mortgage it for our offer?
thanks all0 -
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They will value it at what you offered and had accepted, even if they think it's worth more.
If they think it's worth a lot less, that's another story!0 -
The key is in the words.In my opinion the Market Value on as inspected was:£278000
In my opinion the current reinstatement cost of the property (see note below) is:£175000
Market Value is the amount it is worth on the open market ie what it will sell for.
Reinstatement cost is what it would cost to reinstate if it was destroyed.0
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