House down valued.

chamelious

We put in an offer of 96k on a house on the market for 100k which was accepted, it'll be our first house.

The mortgage valuation has taken place, and they're saying its only worth 90k.

As i understand it, our options are to find the extra £5-6k ourselves (no), or offer the vendors the 90k, which i assume they'll say no to.

In addition, apparantly the home buyers survey has uncovered some problems with damp, we're awaiting the arrival of that to see the full extent.

Can anyone offer any advice? Is it appropriate to apprise our soliciter in charge of conveyancing and ask them for advice?

Thanks

DanJKelly

We got our house for 10k under asking price without any lowered valuation prices they just accepted that price, so with the back up of the valuation they may be willing to move more on the price.. even if it isnt the full 6k this would leave you with less to find yourselves.

They will have this issue again with further buyers if their valuations also come in short.

Surrey_EA

chamelious wrote: »

We put in an offer of 96k on a house on the market for 100k which was accepted, it'll be our first house.

The mortgage valuation has taken place, and they're saying its only worth 90k.

As i understand it, our options are to find the extra £5-6k ourselves (no),Correct

or offer the vendors the 90k, which i assume they'll say no to.You can only ask and see what they say.

In addition, apparantly the home buyers survey has uncovered some problems with damp, we're awaiting the arrival of that to see the full extent. It is likely to suggest getting a specialist damp report carried out. Try to use an indpendent inspector, rather than someone working for a damp proofing company, who may well try and sell you damp proofing treatment, whether it is necessary or not.

Can anyone offer any advice?

Is it appropriate to apprise our soliciter in charge of conveyancing and ask them for advice?No harm in talking to them, but really the only options are the two you've already outlined, in addition to just giving up on this one and walking away

Thanks

You don't know what the owners might say, until you ask them.

chamelious

Many thanks.

I guess we'll have to just find out if they'll go for 90k, as theres going to be no point in getting a damp survey done otherwise.

chamelious

AFF8879 wrote: »

Have you done any research into recent sold prices in the area to get an idea of what similar houses have gone for?

...Isn't that exactly what the valuation is for?

AFF8879

chamelious wrote: »

...Isn't that exactly what the valuation is for?

No. The valuation is to provide affirmation to lenders that they will be able to recoup any debt outstanding from selling the property in the event you default on your mortgage payment.

chamelious

AFF8879 wrote: »

No. The valuation is to provide affirmation to lenders that they will be able to recoup any debt outstanding from selling the property in the event you default on your mortgage payment.

...Yeah, exactly. So they'll want to know accurately what the value of the house is. Are you telling me they seriously don't take into consideration the pricing of similar houses nearby when they work this out? That seems incredible.

eddddy

chamelious wrote: »

Is it appropriate to apprise our soliciter in charge of conveyancing and ask them for advice?

There's not really anything that your solicitor can say, which hasn't already been said above.

If you plan to reduce your offer, it's probably better to do this via the EA, not via the solicitor.

chamelious

eddddy wrote: »

There's not really anything that your solicitor can say, which hasn't already been said above.

If you plan to reduce your offer, it's probably better to do this via the EA, not via the solicitor.

Thanks. I guess the only plan is to wait for the report/valuation to arrive then go talk to the EA then.

DaftyDuck

chamelious wrote: »

...Yeah, exactly. So they'll want to know accurately what the value of the house is. Are you telling me they seriously don't take into consideration the pricing of similar houses nearby when they work this out? That seems incredible.

Well, they won't need to be too accurate, as you will have stumped up a deposit, and that's likely to cover any shortfall. In all likelihood, most buyers will also cough up some months payments as well, before reaching difficulty. Oh, and they can still chase the owner for shortfall in any case.

It is your hard-earned cash that you splurge out each month, and I'd want to know as much as I possibly could from my own research.

Alderbank

chamelious wrote: »

...Yeah, exactly. So they'll want to know accurately what the value of the house is. Are you telling me they seriously don't take into consideration the pricing of similar houses nearby when they work this out? That seems incredible.

They are not interested in the pricing of similar houses, that is just a wish list, however they are interested in the figure which similar houses have actually sold for. You should be interested in those as well (try Zoopla).

AFF's advice about damp treatment firms is excellent for when you actually carry out the work, but it can be useful to get their inflated and sometimes unnecessary quotes to use as a bargaining point with the seller