Mortgage Valuation a whopping 77k under agreed sale price

davidmcn

Bluebirdman_of_Alcathays wrote: »

If buyer and seller have agreed it's worth £737k then it is worth £737k.

If the buyer and seller actually complete the transaction at £737k then it's worth £737k...

MobileSaver

Lloydage wrote: »

we were desperate as we hadn't seen a house that had come close.

From everything you have said it does sound like this house is something special and it only needs one other person to think the same and then the seller could be a happy man.

Lloydage wrote: »

He will run into this everytime someone does a survey unless he is lucky enough to get a cash buyer one day (unlikely).

At that sort of price range there's probably more cash buyers than you think.

Lloydage wrote: »

they will no doubt do a survey and find out the same as us. Also wont this valuation now come up in searches?

No, the valuation won't appear anywhere (unless new buyer is also getting a mortgage though Santander) and as mentioned previously another valuer may come up with a completely different figure anyway.

marksoton

Lloydage wrote: »

We thought it was probably worth around 700-710k but didn't mind paying a bit more and he wasn't budging below 737k and we were desperate as we hadn't seen a house that had come close.


We had no idea it would get valued as low as 660k and that has affected my LTV %age and associated rates and don't have a spare 77k to add to the fund to make up the shortfall.


House Network allows customers to set their own prices and charge hardly any fees so he is really maxing out his chances. To be honest I feel he has taken the p***.


He will run into this everytime someone does a survey unless he is lucky enough to get a cash buyer one day (unlikely).


Why should I now pay much more than 660k knowing all this now?? I think 680-690k is very generous of us considering and he should bite my hand off for it too

So you over valued it yourself but now your mortgage lender has disagreed you're doing him a favour offering less?

The bloke can sell at whatever price he wishes. Make your best offer and he either accepts or doesn't.

There's no point getting an entitlement complex over it.

dc197

Lloydage wrote: »

We thought it was probably worth around 700-710k





Why should I now pay much more than 660k ??

You have answered your own question.
You should pay more than 660k because YOU think it is worth 710. Simple.

Clutterfree

You're calling the vendor greedy, yet until the valuation you were happy to pay £737k for it so you must have thought it was worth it at that time?!

eddddy

Lloydage wrote: »

I can't believe how much he has overvalued his house and been so greedy.

Lloydage wrote: »

To be honest I feel he has taken the p***.

It's really strange that you have offered too much for a house - and you see it as the seller's fault.

That seems like a very unusual view on the world.

Lloydage wrote: »

Ultimately even if he finds another gullible (or stupid as you put it so nicely earlier) punter to offer a silly amount - they will no doubt do a survey and find out the same as us. Also wont this valuation now come up in searches?

As others have said, there is no concept of valuation searches.

However, Santander usually use e.surv for valuations. A number of other lenders also use e.surv. If e.surv are instructed to value the property again for a different buyer, I expect they will check their files and give the same value.

But other valuation firms might come up with a different value.

csgohan4

Pay whatever you think the house Is worth, now your lender, that's another story.

silvercar

Valuing a property is an art not a science. There is no right answer. You offered what it was worth to you. A mortgage valuation will give a value on what it could fetch on the open market in a reasonable amount of time.

If you are going for a high LTV, they may be more conservative. They wouldn't want any bad feedback if a repossession occurred and the property didn't sell for enough. With a low LTV the valuer may be less bothered what they write.

The valuer will be well aware that the selling agent allows the seller to name their own price, so will be very conscious of self inflating prices from vendors.

From personal experience I don't have much faith in e.surv.

You now have an opportunity to negotiate, but I wouldn't be surprised if the seller is not interested in dropping th price by as much as you would like.

Lloydage

A related question is what price do I go back to house network with on Monday?

Ultimately I don't want to pay much if anything over 700k for this house.

Do I go in with 670k and begin haggling process or just say 700k is our final offer? never know best way of starting these chats. Once you say final it doesn't leave anywhere to go. Equally starting very low eg 670k he may think we are not serious at all and will laugh at that offer.

slowpoke_rodriguez

Lloydage wrote: »

Equally starting very low eg 670k he may think we are not serious at all and will laugh at that offer.

It's more likely to wipe the smile off his face.