Low valuation... gutted, what to do?

Thrugelmir

CrippsCorner wrote: »

We phoned up the estate agents and was met with a brick wall, that they're not going to move a penny.

Perhaps they need the money themselves. Not always as simple as it may seem.

David_White

You've got £100 cash in your hand, I'll give you £94 for it... deal?

Sounds like your landlord is trying it on. Don't forget, whilst this may be very convenient for you buying the place you're renting it's also very convenient to the landlord not having to search for a buyer.

Don't sell yourself short.

Annisele

CrippsCorner wrote: »

They said we had to be out by the beginning of April if we're not buying

Just checking you know that it's unlikely you actually have to be out by the beginning of April. Tenancies can only be ended by the tenant or by a court order - so while they can certainly *ask* you to leave, I doubt they can serve the correct notice on you and get a court order by April.

Debtslayer

Seems landlord/ seller is being tough as he sees you as desperate buyers. I think you need to toughen up on this one or they will take advantage of you. If the property is not worth 188 then don't pay it. Lonely pay what you think the property is worth, would you be thinking of spending this much if it was another property and not one you currently live in.
I would be saying valuation came in at X so I'm only prepared to pay X
They can't make you leave in April if they haven't given you any notice. I doubt they would make you leave anyway as they won't get anyone else to rent it while they're trying to sell, which could take months. They're still getting rent from you and sounds like they're trying to really push you into buying; much easier for them as well if they've got a 'captive' buyer
Don't feel forced I to anything, there's other properties to purchase or rent for a while.

CrippsCorner

MARTYM8` wrote: »

I do always find these threads amusing.

Seems the OP has offered to pay £10,500 more for a property than its apparently worth. If people were overcharged by a garage for work on their car by £100 they would be outraged - yet when we buy houses the opposite applies.

Offer £178k - and see what happens.

Not quite the same... it was up for £190k so we agreed to pay less than the asking price. You don't get a third party telling you what work from the garage is worth.

I think £180k would be a very respectful offer. I will also give them the chance to get in another valuation, if they want to pay for it.

Annisele wrote: »

Just checking you know that it's unlikely you actually have to be out by the beginning of April. Tenancies can only be ended by the tenant or by a court order - so while they can certainly *ask* you to leave, I doubt they can serve the correct notice on you and get a court order by April.

My girlfriend is worried if we kick up a fuss we'll get a mark against us as tenants... any truth in this?

Debtslayer wrote: »

Seems landlord/ seller is being tough as he sees you as desperate buyers. I think you need to toughen up on this one or they will take advantage of you. If the property is not worth 188 then don't pay it. Lonely pay what you think the property is worth, would you be thinking of spending this much if it was another property and not one you currently live in.
I would be saying valuation came in at X so I'm only prepared to pay X
They can't make you leave in April if they haven't given you any notice. I doubt they would make you leave anyway as they won't get anyone else to rent it while they're trying to sell, which could take months. They're still getting rent from you and sounds like they're trying to really push you into buying; much easier for them as well if they've got a 'captive' buyer
Don't feel forced I to anything, there's other properties to purchase or rent for a while.

I think they do definitely see us as captive buyers, and I'm happy to change that. I'm sure they expect us just to roll over... but I'm getting annoyed now, so not going to happen

Debtslayer

CrippsCorner wrote: »

Not quite the same... it was up for £190k so we agreed to pay less than the asking price. You don't get a third party telling you what work from the garage is worth.

I think £180k would be a very respectful offer. I will also give them the chance to get in another valuation, if they want to pay for it.



My girlfriend is worried if we kick up a fuss we'll get a mark against us as tenants... any truth in this? With who? You're kicking up a fuss about the purchase of the property, not about paying the rent etc. Ic you've always paid your rent etc on time then what are they going to mark you as?



I think they do definitely see us as captive buyers, and I'm happy to change that. I'm sure they expect us just to roll over... but I'm getting annoyed now, so not going to happen

Good for you. Sounds like landlord is being a bit of an a*** tbh. Banking on the fact that you def want his house because you already live there. Get looking at other properties as well in case this one doesn't happen and you may find something else you prefer anyway :rotfl:

AnotherJoe

I think debtslayer has nailed it. Add to that, you have the valuation report so can use that to deflect any annoyance away from you. This might seem illogical but people can get emotional about these things, you don't want the seller to be bl**dy minded about it and reject it because he thinks you are having a laugh.

You just tell him that sorry you can't afford to pay significantly more than the valuation report so it's (say) £180k or nothing. And then do start looking elsewhere, presumably you'll be in the new house for years so don't sell yourself short for a few extra days hassle of moving. Don't forget, if they do want you out they have first of all a long process to make you leave, and then if they are looking to sell, they can't get tenants in unless it's sold specifically as a BTL and in any case they are likely to have a void period, so that's all expense to them.

CrippsCorner

Well we went in at the valuation price (reminder: £10,500 less than the agreed price)

They came back with £183,000 (basically half way)

We said £180,000 maximum, and it was rejected. Now having a heavy thought on what to do! It's not that much more, but I'm concerned we're only looking to be there for 3-5 years and might well make a loss on the place.

audigex

MARTYM8` wrote: »

I do always find these threads amusing.

Seems the OP has offered to pay £10,500 more for a property than its apparently worth. If people were overcharged by a garage for work on their car by £100 they would be outraged - yet when we buy houses the opposite applies.

Offer £178k - and see what happens.

There's a difference between work on a car, however, which has a clear fixed cost for £x worth of parts and y hours of labour, as compared to the "value" of a house.

Value is subjective, and is not always about "If I sold this right now, how much would I get for it" - you don't buy a house and put it in a safety deposit box then hope it appreciates in value: you live in it.

Also, I'm very cynical about mortgage-related valuation. I've only got limited experience, but I've never known anyone have a lower than expected value when they were just inside the 90/95% LTV brackets, or solidly inside the 70/80% ones, while plenty of people I know (including me) who were just inside the 70% bracket were bumped back to the 80% one. Oh look, a higher interest rate and more profit for the bank.

Mizenberg

audigex wrote: »

Also, I'm very cynical about mortgage-related valuation. I've only got limited experience, but I've never known anyone have a lower than expected value when they were just inside the 90/95% LTV brackets, or solidly inside the 70/80% ones, while plenty of people I know (including me) who were just inside the 70% bracket were bumped back to the 80% one. Oh look, a higher interest rate and more profit for the bank.

Interesting....