Valuation £20k less (Nationwide)

Makkusu

Hi all,

We're first time buyers and recently had an offer accepted on a £220k new build property. Mortgage application has gone off with Nationwide and the valuation has come in at £200k... Problems now exist with mortgage amounts, or we need to fork up extra deposit of £13k roughly.

Now, the estate agents are adamant that the valuation is wrong and by far the lowest £/sqfoot in the development, many which have sold already and been valued at marketed/selling price.

Alongside our broker we've decided to appeal on this basis with the agents providing 3 comparables.

Can I ask for some advice on this situation? I've read it's highly unlikely that appeals get accepted, but are we talking impossible? Our broker says it's 50/50 chance (probably being generous with that too).

IF the valuation appeal fails do we have any other avenues? Apart from the obvious re-negotiation attempt? Are there any tactics to re-negotiate in this instance?

Thanks - this situation sucks

Dird

Help To Buy scheme?

Makkusu

Yes that's right, all loans based on valuation.

sam2015_2

Depends on the valuation company that the lender used. Some wouldn't and some will re-consider. Can never tell.

Get your solicitor to negotiate with the EA.

It most probably will happen to me too. Slightly better house on the same road sold in March for nearly 30k less than what I offered in May. I'm hoping the seller would reduce the price, otherwise I might have to pull out.

Hope it works out for you.

PixelPound

sam2015 wrote: »

Depends on the valuation company that the lender used. Some wouldn't and some will re-consider. Can never tell.

Get your solicitor to negotiate with the EA.

It most probably will happen to me too. Slightly better house on the same road sold in March for nearly 30k less than what I offered in May. I'm hoping the seller would reduce the price, otherwise I might have to pull out.

Hope it works out for you.

Good luck, it really depends how realistic they are, some seller's believe their house is worth X and won't deviate much. One of the first houses we looked at the seller wanted what they'd paid for it in 2007, prices in the area weren't back up to those prices, and even though we went up above what the value would be (based on recent sales), it wasn't enough. We walked away and its still on the market 6 months later, unoccupied as the owners have moved to Spain).

Hope the appeal goes well, Makkusu. Have you or maybe your broker tried to renegotiate it with the EA as it could be an opportunity to get it cheaper. Who knows, if you could get it for £210K might be able to get the valuers to shift up to that on appeal. The EA will always want the maximum and so even though they say its the lowest sq/ft price they've seen, doesn't mean it actually is!