New Build - Valuation lower than purchase price

Kell4life

Try finding out who the regional manager is and go to them direct, cut out the sales people if they aren't helping. You might to hunt them down via Google or LinkedIn.

Thrugelmir

MaebyJade wrote: »

Since being promised I will get a call back to discuss moving forward after the valuation came back lower than asking price, I’ve not been able to get hold of the developers. Called a few times and left messages but no response or call back. I tried the mobile of some of the sales people we’ve been dealing with and the best I got was a text message saying “In a meeting will call you back shortly”, however I’ve not heard back from them!

They've nothing to tell you. The decision will be made a far higher level in another office. As the property isn't even due for completion (at the earliest) until June there's no rush. Perhaps there's other similar issues on the development as a whole.

MaebyJade

Thanks guys, I'll look up the regional manager see if I can find anything and if I receive no response in the next few days I'll give him/her a call.

MaebyJade

My solicitor managed to inadvertently resolve the issue today. They phone HTB agent about another matter and apparently my case was mentioned. Anyway, the developers ended up getting spoken to by the HCA and they agreed to lower the price to meet valuation. Just in case anyone finds themselves in a similar position, this is the explanation I got from HTB via solicitors:

It’s an important requirement of the scheme that homes are sold at no more than Market Value (MV as evidenced by the main lender’s independent mortgage valuation).

If there's a valuation difference, the builder cannot sell for the higher selling price. This is an absolute contractual obligation on the builder and cannot be negotiated – no exceptions.

This policy protects both the government and purchaser from buying/assisting an overvalued property.

We have passed the detail on to the Homes and Communities Agency who administer the scheme and they will contact the builder to reinforce the rules.



Happy with the outcome but definitely a lost a degree of trust with the developer.

Jon_B_2

Interesting plot twist. Good result.

Kell4life

I'm really pleased for you. Great information to know.
I wonder how often this happens, a lot of New Builds particularly Taylor Wimpey seem to be priced way above what they should, and that's taking into account a newbuild premium on top.

We made an offer last month on a Taylor Wimpey property, the development was selling very slowly and the same equivalent 2nd hand house just around the corner was £65,000 cheaper, we knew the houses were very overpriced for the local market and weren't prepared to be done in paying more than it was worth. Taylor Wimpey quickly rejected our offer on the basis that someone else had paid full price on the same plot style weeks earlier. We decided to walk away and we have since found another house and reserved that instead. Funny enough the Taylor Wimpey plot we had been interested in is still sitting there!

gsmmad

Glad to hear the outcome!

MaebyJade

Kell4life wrote: »

I'm really pleased for you. Great information to know.
I wonder how often this happens, a lot of New Builds particularly Taylor Wimpey seem to be priced way above what they should, and that's taking into account a newbuild premium on top.

We made an offer last month on a Taylor Wimpey property, the development was selling very slowly and the same equivalent 2nd hand house just around the corner was £65,000 cheaper, we knew the houses were very overpriced for the local market and weren't prepared to be done in paying more than it was worth. Taylor Wimpey quickly rejected our offer on the basis that someone else had paid full price on the same plot style weeks earlier. We decided to walk away and we have since found another house and reserved that instead. Funny enough the Taylor Wimpey plot we had been interested in is still sitting there!

Seems to be a reoccurring theme of developers using this line. In my case they weren't able to offer any proof of this to the surveyors so it sounds to me like a BS line they are told to use.

dgtazzman

I'm somewhat happy my new valuation came in at full asking price then, or I might have had some problems down the line, though it was HTB Wales themselves that said it was ok to buy at a higher price, as long as I made up the shortfall myself

Anyway, glad it all worked out in the end. My house is moving into first fit next week, so all progressing well at this point ^^

willavoy

Same situation for my partner and I at the moment. Asking price £287k first valuation came in at £270k so developer asked if we could try another lender and they would pay for the second valuation this time it came in at £260k not what the developer was expecting. Currently pending a decision with the director tof lower the price to match the first valuation. Frustrating to say the least. They are adamant that others are valuing up ok but I can't believe what they are telling me. Any way to find out what prices others have paid? I've been on land registry and the prices paid data doesn't seem to update in real time. We are hoping to hear from the developers today with a yes or no, it's been going on now for 4 weeks (when result of first value was received).