Buying property

iantojones40

Davesnave wrote: »

Falls didn't happen with that sort of speed at the start of the 2008 Crash, so why should they do so now?

As someone who sold in 2008, went into rented and then sought a bargain in the depressed market of the time, I experienced first hand just how long people take, adjusting to a new situation.

I suspect there will be a large element of 'wait and see.'

I agree that the widely predicted falls won't happen over night, although maybe it's just coincidence but I've had more reduced property alerts and relistings of previous sstc properties come through in the last week than I've had in probably the last 3 months combined.

I've also noticed fewer new properties coming to market in the last week, suggesting potential sellers are holding off for now.

All purely anecdotal of course.

TBagpuss

NPatel,

In relation to the extension, it is possible to get an insurance policy which would pay out the costs of complying with any enforcement action - e.g. if the council requireed the extension to be demolished. Such policies are normally fairly cheap. They *don't* cover a reduction in value of the property.

Ask your solicitor about the lack of planning. If you have had a survey (not just a valuation) has the surveyor raised any concerns about the structure of the extension?

If not, and if it has been there for some time, then it is probably not a major concern, but this may depend on what type of extension it is, how long it has been there etc. If it was built 20 years ago and here haven't been any issues it is unlikely to fall down tomorrow!

In relation to the vlaue, you can of couse reduce your offer to take into account the lower valuation. The seller might be willing to negotiate, or they might pull out, if they think that they can find another buyer at the higher price.
How big a difference is there between th price you agreed, and the valuation? How does the valuation compare with sold privces for similar houses in the area?
At the end of the day, the house is worth what someone is willing to pay for it. If you still think it is worth what you offered, and you can afod to make up the gap between what your lender will lend you, and theprice, you are free to pay the full amount.

If you don't, then negotiate, but be aware that the seller may decide to remarket it and find someone who is more optimistic about the value, or whose valuer is more optimistic.