Down Value on New build

Mummy_K

Evening,

So everything seemed to be going way to easy with the purchase of our new build Taylor Wimpey house, 7 days after we submitted mortgage application via broker to Nationwide the valuation survey was completed by Countrywide but then we got a phone call from broker to advise that they had down valued the house by £20k. The asking price we agreed was £235k and it's the end of the development and ours is one of the largest houses on there, others have gone for around the same price. Sales lady is adamant it's that particular surveyor as she has had issues with him before and from my research it does seem countrywide do this quite a bit on new builds. From the area there is no way the house could be £215k, second hand homes are going for £250k.
We have now submitted a new application to Natwest via broker in the hope that the valuation comes out more realistic and Taylor Wimpey can accept it (if it's lower). TW are paying for that valuation.
My question was just if anyone had been in a similar situation and also if Natwest also down value what are my options. I'm thinking that surely if 2 surveyors down value it then that's what it's worth and they will need to drop price or add incentives as if I can't get a mortgage then surely nobody else can?

Thanks in advance.

Jon_B_2

Or they could wait for a cash buyer / investor.

dgtazzman

I just had the same with Nationwide/Countrywide. They down valued the new build I'm trying to buy by 12k (while I already negotiated 8k off original asking price of 200k).

I was stumped as the last batch of the house type I'm buying sold and were mortgaged without issue for 185k last year (alas, they are outside of the 6 month time frame to use as comparables), the local market has picked up in the meantime, the finishing spec is higher than the last bunch (higher spec kitchens and bathrooms as standard) and the plot mine is on is a bit larger. Other comparables in the area suggest the price I'm paying is in line with the current market, maybe 2 grand over, but the builder has indicated they can come down by 3 grand if prompted to do so by a new valuation, but no more than that.

After talking to the sales lady and other site staff, it seems the surveyor actually measured up the smaller 3-bed detached house next to mine. They brought this too his attention, but he was rather uncooperative about it all, so chances are he's actually based his valuation on incorrect info.

Mine is also a 3-bed detached, but it has the same floor area as a generous 4-bed, in fact one of the bedrooms could easily be split into 2 decent size bedrooms quite easily.

It's not the first mistake Nationwide has made in the process, so we've now all agreed to move on to Halifax and start again as none of us feel like going through a complaints procedure...

Quite disappointed with Nationwide actually. They were brilliant last time with my mortgage, but this time round it's been one issue after another.

Mummy_K

Dgtazzman let me know how you get on with Halifax and good luck!

I went upto the site today and actually knocked on doors, all people confirmed they paid asking price and valuation surveys were fine so it does seem to just be this one surveyor, sales lady said out of the 150 homes on her site, 4 have been down valued and they were all done by him.

Hoping Natwest are nice and quick at processing our application as were working to a deadline to ensure we can choose our options without having to pay upfront. Does anyone have an idea how long Natwest take to process applications from submission to offer?

Thanks

Thrugelmir

dgtazzman wrote: »

the finishing spec is higher than the last bunch (higher spec kitchens and bathrooms as standard)

Bathroom is a bathroom. Kitchen is a kitchen. Higher spec may appeal to buyers. However adds little value. Like a new car. It's second hand once you move in.

dgtazzman

Very true Trug, but nonetheless, the price per square foot etc. the surveyor came up with are not in line with the local market. My IFA gave it one last try to talk with Nationwide today before putting the application in with Halifax and actually found somebody willing to listen, so they've put in a case to have the valuation overturned, see what happens in the coming days...

expatsmortgages

Hi there, Countrywide always tend to down value unless there is another new development in the area that they can directly compare size and price per square foot. Its a common feature with new builds as they are brand new developers tend to add a premium and price them at the top of the market then offer you a few luxuries such as carpets, freezers and ovens etc which when they purchase them in bulk costs them next to nothing. Don't listen to the sales lady as she is passing the buck over and will be well aware that you were going to get a down valuation unless she has only been in her job for 3 months. Get some extra cash to cover the extra down payment and in a couple of years once your property isn't deemed brand new it should fall in line with the general market.

dgtazzman

I'm not listening to the sales lady, I'm looking at comparables on the local market, as mentioned before. Houses the size I'm buying with similar plot sizes are selling for between 190-200k, hence why I said I might be overpaying slightly, by around 2k, but that is a gap we can bridge.

If the Countrywide surveyor had come up with anything over 185k, I would have given it some credibility, but 180k is completely out of line with the local market. Problem is there isn't a huge amount on local market in the same bracket as mine at the moment. I'd say right now there is only one comparable on within 3 miles, which is on the market at £190k.