Mortgage valuations and renegotiation

danslenoir

Is it common that people renegotiate prices if the mortgage valuation comes back at lower than the offer price? Obviously if the difference is a few thousand this would probably not be necessary, but the house we have offered on was towards the higher end of our budget and I'm a bit worried that if the valuation comes back at much lower than our offer price, we will be stuffed with having a lower LTV (our deposit is right on the cusp of 20%) and rubbish mortgage product.

I spoke with our solicitor this morning and she said renegotiations based on mortgage valuations were not common at all, but that valuations almost always come back at the offer price 'even if it's a funny number'. Having been reading this board for a while though, I was under the impression that mortage valuations are typically conservative and a lower valuation price than offer price is par for the course.

AlistairM

It happened to me in September. House was up for £285K, we offered £280K and when the valuation was done it was valued at £265K. We renegotiated to £275K. From what I've heard its become more and more of an issue since 2014 and the rate house prices are rising, the valuations aren't matching up with it.


As I understand it, the banks valuation survey person most probably wont set foot in the house and mainly look at what properties sold for and base it off that, so they can miss what makes the house valuable.


Have a look at what sold recently near your house, if your offer is close to that then it should be fine.


Renegotiation after showing the valuation to the seller does help, it helped us. But they didn't match the valuation.


I don't feel as bad after having a homebuyers report value the house at £297K, but then I know he actually visited the place. I don't know if the bank would have accepted anyone but their own valuation but I do know its virtually impossible appeal a valuation though.