House we're buying has been downvalued, please could anyone advise?

AdrianC

osz wrote: »

The sad part is that the vendors bought the house 6 months ago for £250k and did some work but not enough to justify a £75k rise in cost. They only did about £15k renovations.

Hold on one minute... You clearly thought £318k was a perfectly fair price right up until a couple of days ago, though. If you didn't, you wouldn't have offered it, would you?

The problem you have is that the people who you're asking for the money don't agree with you.

glasgowdan

AdrianC wrote: »

Hold on one minute... You clearly thought £318k was a perfectly fair price right up until a couple of days ago, though. If you didn't, you wouldn't have offered it, would you?

The problem you have is that the people who you're asking for the money don't agree with you.

You know it's not that simple. It's one thing offering a price if you have information saying it's worth that. But if the information you later receive suggests you were going to be paying over the going rate, it's human nature, sensible and reasoned, to change your mind and realise it's too much. House buying isn't like buying a pack of crackers where you can easily compare prices.

osz

@AdrianC, we did yes. The problem we have is that our LTV is already very high and I don't happen to have £13,000 spare to make up the difference.

When two professional surveyors valued the house lower then it made us think twice about it's value and how it will affect us remortgaging for an extension in the future.

So yes, while we were happy with the offer, we now cannot proceed as we don't have the funds. An issue I'm sure most people will face if buying with a mortgage.

AdrianC

glasgowdan wrote: »

House buying isn't like buying a pack of crackers where you can easily compare prices.

Actually, you can. There is not one single house for sale in this country which can't be compared to other houses for sale and sold.

osz

Has anyone here ever made a cash offer? If so are they usually made much lower than asking price? I'm trying to rule a cash buyer out of the equasion as I've a gut feeling no one in their right mind would offer £318k in cash on a house valued £305k.

Elfbert

csgohan4 wrote: »

Let the EA know the reduced offer stands and other buyers needing mortgages will encounter the same problem. Look for other properties with the Same EA as intent too

As above. Leave your offer on the table, look elsewhere. Either you will find another property, or they will see sense. Either way you win :T

AdrianC

osz wrote: »

Has anyone here ever made a cash offer? If so are they usually made much lower than asking price? I'm trying to rule a cash buyer out of the equasion as I've a gut feeling no one in their right mind would offer £318k in cash on a house valued £305k.

They're made for what the buyer thinks is a fair offer. Just like your offer. The ONLY difference is that there isn't somebody standing over your shoulder second-guessing you.

You thought it was worth £318k. The vendor thinks it's worth more than £305k.

Chapuys

AdrianC wrote: »

They're made for what the buyer thinks is a fair offer. Just like your offer. The ONLY difference is that there isn't somebody standing over your shoulder second-guessing you.

You thought it was worth £318k. The vendor thinks it's worth more than £305k.

You also failed to note that two surveyors believe it is worth less than £318k. If I liked a house and bid £500k then realised after a survey the house was built on sand. I may just change my offer to a realistic one. If the seller then puts their head on the sand, well, that is their choice. It doesn't mean the opening offer was right as new information has come to light.

AdrianC

Chapuys wrote: »

You also failed to note that two surveyors believe it is worth less than £318k.

Indeed they did - but that's beside my point. Your "built on sand" analogy doesn't work, because there's no suggestion that the downvalueing is based on condition, just on perceptions of market value.

They didn't agree with each other on what it IS worth, either.

glasgowdan

So, Adrian, you think the OP is wrong for changing their perception of the value following new information becoming available? or are you just playing devil's advocate?