New build undervalued!

dgtazzman

Then do as I suggested, put 200k on the table and tell them to take it or leave it. With completion in October, they will need to be selling now.

I've adopted a similar approach on my 12k shortfall. Told them I am eilling and able to make up 9k of it, on the condition that they give me around 1.5k of upgrades I want for 'free'. I know that is realistic as the first house of my type sold last year for 185k and the second a few months later for 188,5k (the very nice sales lady is far to open with information for her own good). The market has been pretty stagnant in the area since and has only just started showing signs of picking up, so I consider my offer of 189k realistic.

Mortgage_Mark_2

Fahm wrote: »

Thanks. Added complication is the lenders that are willing to lend to me is limited, as I am a contractor so I cannot go with a usual high street lender. I am going with Kensington Mortgages. Arent valuation agents independent of lender? I am putting in a 25% depo, I have everything sorted in terms of finances and all that needs now is exchange of contracts. i think they would be a bit silly to pull the plug for 10k less, I do have the funds to make up the difference but i dont want to go higher than 200k as the property simply isn't worth that much.

Why Kensington? I'm a contractor specialist broker and have used Kensington twice in 18 months...

Edit: No, valuation 'agents' aren't independent of the lender. The mortgage valuation (aka basic valuation/survey) is carried out on behalf of the lender, not you.

Fahm

Hi, i have only one year full accounts, started contracting in jan 2014, so i dnt have two full years yet. Kensington were the only ones that were willing to lend to me with 1 year accounts according to my broker. I know the valuation guy carries out his work on behalf of the lender, but i thought a diffwrent lender could use the exact same valuer....

I called head office today and they just dont seem to be cooperating. They keep saying they need to discuss and call me back but theyre unlikely to change the price. They dont call me back. Id just like to know where i stand, if i have to pull out i will, but i want to know where things are heading. Theres only so many times i can call to chase....

dgtazzman

They probably want you to broil in your own sweat, hoping you'll break and increase your offer. I'd call their bluff, give them a deadline to answer, but be prepared to stick to your guns and walk away as it sounds as if you've made up your mind you are not willing to pay the 210k.

I have a meeting with somebody senior from my builder's onsite tomorrow to discuss my proposal, as least it's not a straight 'no way' in my case

getmore4less

The are completing in Oct and have no contracts exchanged yet!
(you do mean Oct 2015?)

How many do they have to sell?

When did they put them on the market, most builders want exchange so early people are moaning about mortgage offers running out.

Mortgage_Mark_2

Fahm wrote: »

Hi, i have only one year full accounts, started contracting in jan 2014, so i dnt have two full years yet. Kensington were the only ones that were willing to lend to me with 1 year accounts according to my broker. I know the valuation guy carries out his work on behalf of the lender, but i thought a diffwrent lender could use the exact same valuer....

I called head office today and they just dont seem to be cooperating. They keep saying they need to discuss and call me back but theyre unlikely to change the price. They dont call me back. Id just like to know where i stand, if i have to pull out i will, but i want to know where things are heading. Theres only so many times i can call to chase....

Oh I know Kensington are good for 1yr accounts (although there are others too) but if you're a contractor, why not use your contract for income proof?

dgtazzman

Just to keep you motivated, I had my meeting today with the builder. I think they just wanted to gauge if I was serious about buying the plot and wasn't going to keep looking for problems and renegotiating as after a little friendly chat, they happily accepted my revised offer.

So in my case, they're dropping the sale price by 3k, paying for 2.5k worth of upgrades I wanted and I'm making up the rest of the shortfall by upping my deposit, now we've somewhat met halfway and we're all happy.

dunstonh

Now you see why the surveyor comes in with a lower value. Bet you are pleased they did now. Its just a poker game with the builders to get the price right.

Butti

Open Market Value is the price agreed between a willing buyer and a willing seller. An independent surveyor needs to be within 10% of this.

Seems to me the builders are having difficulty finding a willing buyer. The surveyor for the mortgage may also not be independent. Have you tried spending some time looking at prices in the area?

Let them come down to you.

dgtazzman

I had, dunno if OP has. The originally agreed price in my case was slightly on the optimistic side, but not completely unrealistic. Price in the area for existing houses of the same size is about 190k, they wanted 192k, which I would have been happy to pay, but we caught a very pessimistic surveyor, who I should thank as at the end of the day, he saved me around 6 grand.