Renegotiating after Survey

quartzre

Hi,

I'm a first time buyer, where can I find some good advice about renegotiating after the survey/homebuyers report?

I have had an offer accepted for a house at 263000, which was on the market at 260k. There was another another offer at the time which WASN'T below the asking price (I don't know the exact value). However the results of my homebuyers report have valued the house at 240k.

I still wish to proceed, but I am wondering what price I should reoffer. I don't want to go too low in case I lose the house after having paid over £1000 in legal fees, and survey fees.

Any advice would be appreciated

G_M

Show the Valuation to the EA and say you are reducing your offer to

* 240? (you'll almost certainly not be accepted)
* 250K (mid-way so who knows)
* some other figure.

Very few sellers will agree to drop that much especially if they have a linked purchase and are dependingon their sale money and/or have a mortgage for close to the original sale price.

But if the property is genuinely over-priced and has been on the market for a long time, they may be desparate

ThePants999

Two things to consider here are:
- What does the valuation mean for your mortgage? E.g. if you were looking to borrow 90% of 263000, and can now only borrow 90% of 240000, you'll have no choice but to reduce your offer by the difference.
- What's it worth to you? We would have paid more than the surveyor's valuation for our current house, if we'd needed to in order to secure it. It was worth more than that to us. But if the information in your report leads you to agree with your surveyor that it's only worth 240K, you should only offer 240K.

quartzre

should I actually send the whole report to them?


Regards
Dan

quartzre

The lender completed a separate valuation, which they didn't show me, but they were happy they could recover the value on the property. Is there a way of getting the lenders valuation?

bruich76

could try asking your solicitor as it gets sent to them by the bank but, technically speaking, its for their eyes only and it shouldn't be sent or seen by you at all.

DaftyDuck

But the lender is almost certain to be able to recover the debt. You'll have paid a deposit, so that will probably cover any shortfall. You are unlikely to fail to pay the mortgage in the first few months, so they'll have that to put to their account. House prices do tend to increase (Hello Crashy:hello:), so come a year or so, they'll be even more safe. Oh, and then they can chase you anyway.

The Lender's Valuation wouldn't interest me particularly.

I wouldn't give the whole survey to the Estate Agent, as this might be of too much use to the vendor, but I'd give them much of it. Personally, I wouldn't put an opening value on a potential reduction, I'd simply point out that, as things stood, the difference between valuation and offer was too large, and ask them and the vendor to come up with a suggestion. In many bargaining gambits, it's the one who starts offering a price who holds the weaker hand.

However, you do seem to want this house, so try not to burn bridges.