Valuation Less Than Asking Price - What To Do?

hierrodaknuckles

hello all,

first post, be gentle pls.

i'm selling my place, buying another. The valuation on the place i am buying was exactly the same as the purchase price, great.

Problem is, the surveyor came to my place today and was pretty rude and said the asking price that it was on for was optimistic. I have accepted an offer 3k under asking price and thought that it was a good deal. But what happens if he gives a valuation price less than the price i have accepted from my buyer?

She is getting a 100% mortgage aswell which doesn't help matters.

Does anyone know how much flexibility the mortgage company give with the loan offer and valuation price - none or a few thousand perhaps? What shoudl I do if the mortgage company will not allow her to borrow the amount we agreed? Will all be down to me to reduce my price but still pay the amount agreed on my purchase? Problem is, the purchase price on the place i'm buying was only possible cos of the price my place was being purchased for.

Hope this all makes sense, sorry for the ramble.

advice greatly appreciated ta.

HugoSP

The surveyour should not have discussed the valuation with you.

Wait until the buyer comes back to you, then take it from there. The surveyor still has to do some comparisons in the area.

hierrodaknuckles

i should hear in a week or so but the wait is gonna be tense. he was a really rude guy whose pessimism just filled me with dread. I hope he was just havin a bad day

codger

Hopefully your visitor was a "genuine" surveyor from an established firm, even if out of your area.

Back at the time of 1990's volatility there were cases reported of phony "surveyors" turning up -- actually, friends or relatives of the prospective buyer -- and announcing valuations that were deliberately marked down.

That the "surveyor" imparted this knowledge to the seller rang alarm bells (obviously, the "surveyor" wasn't actually reporting to anyone, and so instead of a seller finding out in the usual way, the "surveyor" had to announce the "valuation" there and then in hope that this would cause the seller to panic.)

I don't know if this has happened in your case but as HugoSP points out, the surveyor should not have discussed his / her valuation with you. The only thing you can do now is wait to hear from your buyer and trust she'll produce the written report for you both to sit down and discuss.

hierrodaknuckles

thanks for the heads up on that, crazy stuff, but yeh, he was def a genuine surveyor. I called my estate agent straight after and she knows him. she too was surprised about what he said.

it's difficult not to thing about it whilst waiting but i know i have no other option, i'm just not sure how i can make up the difference if the buyer wants a reduction.

Doozergirl

With 95-100% mortgages, you will find surveyors far more likely to undervalue, especially if they are feeling pessimistic about the property market. The higher the loan to the value of the mortgage, the less leeway they have should they need to repossess. 100% will be drying up in the credit crunch

eg. if your buyer had a 20% deposit, prices could fall nearly 20% and the mortgage company would still be able to recover the loan should they need to repossess. No deposit and even stable house prices would see the mortgage company down and having to chase the 'owner' for money.

dolce_vita

How's your sale going dooz?

Doozergirl

Nearly two weeks, seven viewings, no offers. All positive feedback except the main road is an issue for some.

mr.broderick

Post a link and i'll tell you where you're going wrong you amateur

dmg24

Doozergirl wrote: »

Nearly two weeks, seven viewings, no offers. All positive feedback except the main road is an issue for some.

Sounds like a good start.

I grew up on a very quiet little street, but for the past five(ish) years have lived on or near various busy roads. To be honest, I have got so used to the noise that I don't think I could go back to somewhere quiet!

My mum still lives on the very quiet street, but often has to stay at my grans, which is by a mega busy road. She admits that she sleeps a lot better listening to the lorries going past.

One negative for my selling (which I am hoping will be forgotten by the time I get it on the market): Some of my neighbours have complained to the local paper about all the noise we get at night from our local Tesco store. I am a very light sleeper, and there is no noise! Get the feeling my neighbours are just chasing compensation (but I'll being having words when I find out exactly who it was!).

Do you want me to have a word with your viewers DG?!! x

dolce_vita

mr.broderick wrote: »

Post a link and i'll tell you where you're going wrong you amateur

She's already had a few tips off me.

But you know what these bl00dy women are like mr. b