Why seller needs valuation report back before exchanging?

marmage

Hi everyone,

I left this too late to enquire with my solicitor today and am going seriously crazy worrying this purchase will fall through and delay. I was hoping someone could educate me with some possible reasons.

We were scheduled to exchange today, complete next week. This didn't end up happening because the seller is still waiting for a valuation report which he was supposed to have received today and didn't. I only knew about this yesterday. My solicitor was told by his solicitor that he is chasing and seller is very keen to exchange and complete.

On what property might the seller be awaiting a valuation report for and why would that affect exchanging contracts on this property?

davidmcn

One he's buying, I would have thought?

G_M

If he's not yet had the valuation report back on his purchase it's quite likely his mortgage application has not yet been approved.

So don't expect to exchange tomorrow!

marmage

Thankyou davidmcn / G_M

Sorry I'm probably being real dumb about this, but I still don't understand how his purchase affects mine - he doesn't live in the property he's selling me. The flat is empty as his tenants vacated it about a month ago.

m0bov

He needs to make sure the money he is getting from the sale is enough to put towards his purchase. This could take weeks or fall through. I would be on the phone to the EA asking how they could be expecting to Exchange when he has only just started his purchase.

cattermole

Although you might wonder why if the property is empty and he is not living there and he was previously renting it out, why he needs to wait for an onward purchase valuation?

Surely he gets the cash from this sale regardless of an unconnected onward purchase?

So understand the OP's quandary TBH

G_M

sign up with some EAs and start looking for a new property.

If this seller comes through and exchanges - great. If not, you''ll already be on the track of a replacement.

agrinnall

Maybe he's waiting to see the valuation so he can decide whether he needs to ask you for more money for the sale, which he can't do after exchange.

marmage

Thankyou m0bov. I'll get on the phone to the EA first thing tomorrow. I suppose if the money from the sale isn't enough to put towards the purchase he will either make me pay more, remarket the property, or look for a cheaper property at his end?

It has sprung up out of nowhere a day before we agreed to exchange. Stupidly worried now. Cant imagine will get any sleep tonight.

Thankyou so much for the responses - I don't have a single person I can phone to chat about this at this time of night. Extremely grateful for the help on here.

SmlSave

Marmage, please be aware that it is pretty impossible to agree/arrange a day to exchange.

Even when your solicitor is ready to exchange someone else in the chain may not be.

cattermole

SmlSave wrote: »

Marmage, please be aware that it is pretty impossible to agree/arrange a day to exchange.

Even when your solicitor is ready to exchange someone else in the chain may not be.

True, however OP thought they were buying a chain free property surely? If it was empty and previously had tenants in it?

So just them and the Vendor? Assuming the OP is not selling a property as well?