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Property Valuation
Comments
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Market value of property = £165,000
Less reinstatement cost of £130,000
Which indicates the plot of land has a value of £35,000. As Thrugelmir says, that would be a bargain.
It doesn't work like that at all. Reinstatement costs cover the REBUILDING of a house. Not the building of a new one. Rebuilding is always more expensive, particularly for terraced or semi-detached houses where shoring up adjacent properties and site clearance would be a large percentage of the re-instatement value.
Based on your crude assumption, please explain how this would apply to locations in the UK (and there are many of them) where the reinstatement value EXCEEDS the open market value?
From your login name I assume you are an Estate Agent. If you are, God help your clients.Eat vegetables and fear no creditors, rather than eat duck and hide.0 -
Hi all
Price was agreed - so property would be taken off the market.
Now that we have survey report - we need to negotiate the purchase price0 -
Have you not already agreed the purchase price by, err, agreeing the purchase price so that the seller took it off the market?
Did the survey come back with a different value that is much lower? Is there a retention in the mortgage offer?Total Credit Used...=........£9,000 / £52,700
Mortgage..............=........£138,000 , 20 Years left.
:starmod:CC cashback for this year..=........£112.88 £205.81 banked in 2015
:starmod:YNAB User & Mortgage Free Wannabe
:starmod::A19/03/160 -
Have I got this right? You've agreed on £165k; surveyor confirms market value is £165k; and now you want to negotiate because the reinstatement cost is lower? If I were the vendor I'd send you off with a blood sucking insect in your ear.0
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You've done that. That's why the property is off the market. You offered them - I presume - £165k, they accepted.Price was agreed - so property would be taken off the market.
Now that we have survey report - we need to negotiate the purchase price
If the survey has raised any faults with the property that you weren't aware of, you can now bring those to the vendor's attention, and ask if they would consider a reduction in the agreed price to reflect them - but, since the valuation says that the property is worth the asking price, you are not in a strong position.0 -
If you were buying my house and you used that to suggest a new price...given there is nothing in it you've listed that caused concern I'd reject your offer and look for a new buyer more likely to stay the course.0
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Has the property been valued at the agreed price?
If yes, everything is alright, move on.
If no, has it valued at less than the agreed purchase price?
If yes, renegotiate price based on valuation.
If no, it's valued at more than the agreed price?
If yes, keep schtum.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
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