Lender survey 72950. House price 84950

novymivo

Hi All,
I asked Santander to be my lender. I received call today: Survey valuation is 12000 £ lower than my offer accepted by seller. I have no spare 12 k. Any idea what to do now ?
Is this normal to see that big difference ?

Thrugelmir

What's the reason? You'll know more when you receive a copy of the valuation report. That's a substantial reduction though. Difficult to see the vendor agreeing to same.

dunstonh

Any idea what to do now ?

You go back to the estate agent and haggle the price.

Is this normal to see that big difference ?

Estate agents typically over value a property by around 15%. So, how much did you knock off when you agreed the price?

What are similar properties selling for in the street? (look at zoopla and rightmove)
Are there any issues with the property?

novymivo

1. I do not know the reason of lowered valuation.
2. I agreed to pay asking price of 84950.
3. I offered 7 k extra as this is max what I can afford from my savings
4. I am paying 25% of deposit to Santander

dunstonh

2. I agreed to pay asking price of 84950.

And that is your problem. You are likely paying over the odds.

novymivo

And that is your problem. You are likely paying over the odds.

True, but at the end I have to pay mortgage even If I overpaid for the house, what I really do not understand. The most of the properties got higher prices on the market. Lack of right properties where I actually live. Maybe I should ask Santander to find similar property for 72 K lol.- good luck with that.

Nebulous2

novymivo wrote: »

True, but at the end I have to pay mortgage even If I overpaid for the house, what I really do not understand. The most of the properties got higher prices on the market. Lack of right properties where I actually live. Maybe I should ask Santander to find similar property for 72 K lol.- good luck with that.

You are free to offer more than the valuation. The only problem though is you have to pay it and not Santander, as they won't. This happens to a lot of people, particularly where they are pushing affordability limits.

rtho782

You can still get a mortgage, it's just that you're looking at a 90% LTV product and will pay more interest, rather than a 75% LTV.

Up to you I guess, but you'd be mad to overpay this much.

silvercar

Wait until you get the full report and see why it has been valued so low.

If it is because there is some serious issue that will cost you to put right, then you need to have money set aside to deal with it.

If it is just because the valuer has a different interpretation to you on what the property is worth you will need to decide on re negotiating the price.

Say for example, the valuer has spotted that you will need a new roof within 2 years, you will need to find the money for this. it would be reasonable to renegotiate the price for this. As it is something you weren't aware of initially.

On the other hand, if the valuer doesn't think much of the area, he may put a low price on it for no other reason.

Estate agents usually show comparison properties to the valuer, I am surprised on the size of the reduction if there is no reason for it.

Wake_up_call

So you've agreed to pay £7,000 over the asking price (which was probably overvalued to begin with) and you're asking why the lender's valuation is lower?

Err....

kingstreet

What are the recent (last four months) SOLD prices for similar property in the vicinity (within 0.5 miles) as these are the comparables surveyors use to establish a value, outside of consideration given to essential repair issues;-

http://www.rightmove.co.uk/house-prices.html ?

Take no notice of estate agent marketing appraisals. These are not noted by qualified chartered surveyors for mortgage lending purposes. Only actual verifiable sold prices are.