Mortgage Valuation a whopping 77k under agreed sale price

sann420

The bank who is financing this whole deal says its worth 660k. This is an official 3rd party so both buyer and seller should trust their judgement. And once the sellers hears this through the estate agent then he/she would know that other buyers will have same issue as well. Basically its grossly overpriced.

No matter how good a house it is you shouldnt be paying a penny more than 700k IMO. Infact 700 is already 40k more than the valuation. Wait and see what happens. State agents do all sorts of pressure tactics. They might come back to you and say some one else is willing to buy for xxx.

Set a figure in your mind what ever its worth and DO NOT go above that what ever happens.

Crashy_Time

hazyjo wrote: »

As I mentioned above, I looked in Epping 5 years ago between £350-375k. All houses on the estate are now going for over £700k. And they are not refurb/improved ones, just a reflection on the market in that area. Surrounding areas (including mine) have done the same.


C'est la vie.


Jx

Buying now then would prevent me from being able to sleep in case there are any economic shocks to come that could send that price back down, because it seems that sentiment is the only thing holding it up?

Lloydage

Im really stuck now. Im a bit peeved with myself for settling at 705k. Wish I could go back and just say 680k!


In any case - I am now getting my mortgage through another lender so will be interested to see what their survey comes back as.

hazyjo

Crashy_Time wrote: »

Buying now then would prevent me from being able to sleep in case there are any economic shocks to come that could send that price back down, because it seems that sentiment is the only thing holding it up?

Well, you'd think so, but not really the case in London

Lloydage

The truth is I don't or wont ever know what his bottom price is - and whether someone else would always be willing to pay more.


Ultimately we saw a lot of rubbish at 700k and this stood out.

Hoploz

Don't worry Lloydage, you'll be fine. Some people come on here purely to cause trouble, ignore them.

Fingers crossed the new valuation comes out at the price you've negotiated and you can feel confident you've done the right thing. When is it booked for?

Crashy_Time

The OP seeing "a lot of rubbish at 700k" says it all about this particular market for me, what happens when this rubbish starts to slide back to more realistic pricing, is a refurbishment/extension whatever going to prevent the house the OP wants to buy being affected price wise. IMO no it won`t.

Lloydage

The new lender is going to be Coventry. Survey not booked yet.


Quick question (and should probably be another thread) - should I also take out a mortgage protection with them? Do all lenders also try and sell you this?

SuzieSue

Lloydage wrote: »

The new lender is going to be Coventry. Survey not booked yet.


Quick question (and should probably be another thread) - should I also take out a mortgage protection with them? Do all lenders also try and sell you this?

Only if you can't get it cheaper anywhere else. They will probably also try and sell you buildings and contents insurance but you should always shop around.

Crashy_Time

What fascinates me here is that the seller of the house the OP is interested in is at least trying to justify the 700k price (up nearly 400k from a few years ago) by having had work done to the house, even although the lender thinks they are over-reaching by 77k, but other sellers presumably just think that their house is worth 700k because "that`s the market"?