Undervalued property

Jatin

Can anyone advise we put an offer on a property at 700k and the mortgage got accepted and then the valuation survey came back at 625k so things are a bit up in the air. It's not a small amount it's a big difference we love the house but don't want to over pay by such a huge amount. The seller refuses to reduce price. What I want to know is of we decide not to proceed with the purchase and someone else buys it and they require a mortgage is the valuation likely to be similar or could the next surveyor just turn up and say it is worth 700k and the lender is happy. My lender is natwest at the moment. Such a huge under valuaton I don't know what to do

mrginge

It depends on who the next lender is and which surveyor they use.
With a limited number of both then it is likely that the same valuation may result.
Also, if the first surveyor has done their job correctly then one would expect a different one to also come to the same conclusion.

Or the next buyer may not need/want a survey....

anandp

Jatin wrote: »

Can anyone advise we put an offer on a property at 700k and the mortgage got accepted and then the valuation survey came back at 625k so things are a bit up in the air. It's not a small amount it's a big difference we love the house but don't want to over pay by such a huge amount. The seller refuses to reduce price. What I want to know is of we decide not to proceed with the purchase and someone else buys it and they require a mortgage is the valuation likely to be similar or could the next surveyor just turn up and say it is worth 700k and the lender is happy. My lender is natwest at the moment. Such a huge under valuaton I don't know what to do

Its a toughie. If the house is in a very popular area, then someone may still pay above valuation. I would ensure firstly that any mortgage which is dependent on the valuation is still viable. If it is, i.e. you've got funds to make up any shortfall in what you can borrow, then I'd start making the estate agent very nervous.

Ultimately, its your choice - how long you've been looking for, the urgency to move, etc.

Thrugelmir

What's the reason behind the lower valuation?

ognum

Jatin wrote: »

Can anyone advise we put an offer on a property at 700k and the mortgage got accepted and then the valuation survey came back at 625k so things are a bit up in the air. It's not a small amount it's a big difference we love the house but don't want to over pay by such a huge amount. The seller refuses to reduce price. What I want to know is of we decide not to proceed with the purchase and someone else buys it and they require a mortgage is the valuation likely to be similar or could the next surveyor just turn up and say it is worth 700k and the lender is happy. My lender is natwest at the moment. Such a huge under valuaton I don't know what to do

Yes another surveyor could value it at your offer price, a cash buyer could come along and pay the price you have offered as well.

It's a gamble, withdraw and they may find another buyer or they may lower the asking price. How long has the property been on the market?