Homebuyers report valuation

Milkyjoe_2

Hi I'm a 1st time buyer - very inexperienced. Offered asking price of 92500 on older house which I Know had been bought in March for 60000 and done up. This is the 2nd house I've put an offer on. The 1st one was for 93000 (survey agreed with the the price) but I pulled out because of serious damp. I realise now that it's probably unrealistic to expect no damp in my price range.
My question is, while the survey has again found some damp, I'm willing to live with that. However it's valued the house at 80000. I'm waiting for my mortgage company to contact me but I don't know what to do for the best. I really like the house. It seems very similar to the first one which was valued much higher.
I really need some advice.

Flugelhorn

valuers and mortgage company will know that it was £60k in March and also know that it is unlikely to have gone up over 50% even with mega doing up

exiled_red

How much are similar houses in the same area/street sold for that should give you an idea about what it is worth - that said if the house is worth the higher price to you all that matters is whether you can buy it. The mortgage company ultimately are only interested in ensuring that there is sufficient value in the property that they will get their money back if the worst happens and you can't pay. So if you have a large deposit that is more than able to swallow the difference in value you might be able to go ahead, if you are wanting to borrow more than they believe the house is worth they will refuse to lend to you.

G_M

How much are you borrowing?

Milkyjoe_2

In terms of size, age, location there's very little difference between the 1st house I looked at which the surveyor agreed was worth 93000 and this one. If anything, this one is a little bit larger.
I have a 33000 deposit so only needed a 59200 mortgage.

Cakeguts

If this house has been done up properly there shouldn't be any damp found during the survey. So what else are you going to find that hasn't been sorted out apart from the damp? The interior might look wonderful but what is the roof like? Have you looked at the gutters are they in good condition? You need to look at the whole house not just what someone has done to the interior. Kitchens, bathrooms and decorations are cosmetic and won't look very good sitting there on their own if the walls fall down.

Milkyjoe_2

The only major thing in the homebuyers report was higher readings of damp, with the advice to get it checked. Everything else was apparently in reasonable condition. none of the houses I'm looking at have cavity walls so I'm thinking that some damp readings are almost inevitable. I walked away from the last house because the survey said the dpc had failed but I'm worried that if I'm too nervous I'm not going to find anything.

nimbo

How far away is the first house? If they're on different sides of town or in different areas then comparing them may be like comparing apples and oranges.

Look at other houses in the same street as the one you are looking at to see how much they are up for / are selling for and have sold for recently online to help you gauge this house worth. Obviously if the first house is on the other side of the street then fair enough.

I'm avidly reading these boards as I am hoping to soon be a first time buyer. Given the valuation I would personally be trying to renegotiate price using that as my reasoning as well as the potential to have to deal the damp. bir someone much more knowledgable will be along soon enough.

SparksAlive

Milkyjoe wrote: »

The only major thing in the homebuyers report was higher readings of damp, with the advice to get it checked. Everything else was apparently in reasonable condition. none of the houses I'm looking at have cavity walls so I'm thinking that some damp readings are almost inevitable. I walked away from the last house because the survey said the dpc had failed but I'm worried that if I'm too nervous I'm not going to find anything.

So, I had roughly the same thing happen with the house I'm buying, advice that there may be damp in the bathroom, and to get it checked.


I went back with a plumber and he advised that any damp readings were probably caused because the suite was old and badly fitted, and the shower was leaking around the seals because of this. Since I'm planning to get the entire bathroom refitted anyway, this isn't a problem, and I get the impression that it could be patched up if I weren't having it all ripped out anyway.


So don't take the survey as gospel that there must be a huge problem. Go back with an expert and have them take a look.

Milkyjoe_2

Vendor asked to see copy of homebuyers report. Stupidly allowed EA to persuade me itI was showing good faith by letting him have it. Waiting for their response. Am now thinking this was a very foolish move and not sure what to do next

Ray_Singh-Blue

Why do you think that might have been a bad move? I would say it shows you have well grounded concerns and could be a firm platform for negotiation.

Sounds like there are two main issues. The damp - you could negotiate around that. They fix, or reduce price and you fix.

The valuation- they will realise that this could make it difficult for any buyers to get a mortgage at the price they are asking. Another platform for negotiation. Suggest do not let them know that you have a large deposit.

It is important to negotiate here because, with the house, you will be buying these two problems and the price should reflect that. Without knowing more details I would aim to pay between 85 and 88 perhaps.

One exception, if have been searching for a long time and *know* that this is the perfect house for you and there is unlikely to be another one, then you may just have to take a hit. But see it as spending 12k, assume you will never see that 12k again. If you like the house so much that you can live with that, OK.