Mortgage Valuation a whopping 77k under agreed sale price

warby68

Crashy_Time wrote: »

Mmmm...I wonder why? Buy at any price is shockingly bad advice for this stage of a property bubble.

Who is saying 'buy at any price' ?

I think most are saying consider carefully what it is worth to OP taking the new information into account

googler

If a Single Survey regime under HIPs had been implemented in E&W as well as it has in Scotland with the Home Report (including a surveyor's valuation), you wouldn't be in this situation.....

So, look out for the Govt's information-gathering exercise on changes to the E&W system (if such is open to the public), and make your views known there.....

Or start lobbying the Govt right now...

Crashy_Time

warby68 wrote: »

Who is saying 'buy at any price' ?

I think most are saying consider carefully what it is worth to OP taking the new information into account

That still leaves a big gap between what the valuer and seller think it is worth? Can`t see the OP having any other choice than walking away in this case.

warby68

silvercar wrote: »

It is a difficult chat and you have to engage with the seller. After all you are devaluing their prize asset. No point alienating them unnecessarily.

I would start with saying that you fell in love with the house, offered relating to the asking price and have now hit a problem.

You have the mortgage valuation and it is 670k. This causes you a problem as (a) the mortgage company bases their mortgage on what the property is worth and (b) you were basing your prepared price on what it is worth and obviously that has now changed.

You realise that will be a disappointment to them, but would like to point out that if they don't sell to you, then their next potential buyer will face the same issue.

Then I would be inclined to say you are reconsidering and will get back to them in 24 hours. Or you could ask them what sort of price they could consider accepting in the light of this new information.

What he said

That's how I would play it pretty much - gives the vendor a chance to absorb the news, calm down and rethink themselves just as OP is having to do before you get to the hard bargaining.

warby68

Crashy_Time wrote: »

That still leaves a big gap between what the valuer and seller think it is worth? Can`t see the OP having any other choice than walking away in this case.

Is 10% really a big gap?

I've seen worse, many times

googler

warby68 wrote: »

Is 10% really a big gap?

Yes, if you don't have the 10% in hand.

warby68

googler wrote: »

Yes, if you don't have the 10% in hand.

Of course but I meant in the context of surveyors valuations compared to deal price ie is this not more a typical scenario rather than some massive unusual warning about this property?

Smodlet

Mortgage valuations are done purely for the lender's benefit, not the buyer's or the seller's. They are solely to determine how much they are willing to lend on a property, rather than how much it is actually worth. That said, it is so true that houses are worth what people are willing to pay for them.

The advice on here about how to negotiate with the vendor is stellar, i.m.h.o. you could do worse than to follow it.

Good luck and ignore the trolls! Asking for information or assistance is never stupid, not asking can be.

GaggingOrder

I do feel for you, but as others have said don't let this set back make you turn on the vendor. There seems to be this assumption that because he's using an online EA he can set his own price, but that is also true of high street EAs. Obviously they will tell people what is realistic, though. Chances are he invited a few traditional EAs in for valuations anyway. If you're going to be able to compromise, you need to keep the vendor on side and hope that the Santander valuation brings a dose of realism to the equation.

Hoploz

I think the seller's reaction to a low offer will depend on whether anyone else is interested. If its been on the market for ages with little interest then he is more likely to let it go for less than if it's brand new and you were the first to view.

I'd suggest also that being quite near to London in commuter belt territory is not in your favour as there's a chance someone from in the city could pip you to the post with a cash offer from selling their hugely overpriced one bed apartment for a million quid and take this house as a snip. It's a problem I have here in Surrey too.

Your hands are tied to an extent but you seem able to negotiate into a point. You really need a good estate agent to resolve this properly, I think it's a very difficult one as its an online type company.

Personally I would feel incredibly uncomfortable handing someone such a huge profit after such a short time, but I do get where you're coming from as it's worth it to you as its unique, and it suits your requirements better than anything else you've seen. I've been in the same position myself.

Good luck