Bidding war above house value

FattyBettyBoo

Hey, selling my house and had an asking price of around the market value. Type of house is sought after so lots of interest and offers. Ended up accepting an offer above the initial asking price.

Survey done a few days ago and comes back with market value order the original asking price. Buyer now wants to buy it at original price as mortgage company won't lend above the house value. Estate agents have advised to accept new offer even though 6% less as they say no one would be able to get a mortgage for more than its worth.

Is this all correct? I've got three people wanting to pay more, so does this not mean the value is too low?

Thanks in advance for any advise!

ACG

Do any of those people have more than a 10% deposit? Lets assume the sale price is £105k but the value comes back at £100k. Someone can still buy it for £105k, but they would need to put down atleast 5% of the £100k plus the difference between the £100k and £105k.

So if someone has a 10% deposit, they could still proceed but they would end up on 95% mortgage rather than a 90%.

One surveyor downvaluing does not mean they all will. You have nothing to lose but time by trying other buyers.

dlmcr

I think you are looking at this the wrong way if you are only looking at the £ offer amount - you should look at the positions of the potential buyer, eg cash buyer are they in a chain etc etc. eg a cash buyer offering 100k would arguably be better than someone in a chain offering 105k .

ACG

dlmcr wrote: »

eg a cash buyer offering 100k would arguably be better than someone in a chain offering 105k .

Personally I am anti cash buyers. On more than one occassion I have known them to reduce their offer at the last minute, knowing that the vendor is almost forced to accept it.

Because they do not need a Mortgage, they can afford to play a few more games as they do not need to wait for offers ot be reissued.

I agree in principle that the state of the buyer matters, but cash buyers are not as good as they are made out in my opinion.

getmore4less

If the buyers have something to sell is it through same agent?


as above, review all the other potential buyers positions and offer to them or remarket

The place seems popular enough, have you done your own what's sld selling and worked out your own value just accepted what EA said.

FattyBettyBoo

It's a starter home so they're all first time buyers with mortgages.

The estate agent has sold two more a while back the the valuations on those came in lower than expected, with different surveyors.

getmore4less

What are they selling at.

davidmcn

FattyBettyBoo wrote: »

Estate agents have advised to accept new offer even though 6% less as they say no one would be able to get a mortgage for more than its worth.

Their mortgage lenders will base their figures on the lower value but that doesn't mean buyers can't pay more if they want - that's how prices go up in a fast-rising area, otherwise everyone would be stuck at the conservative levels the surveyors use based on past sales.

comeandgo

A yes, the good old days when properties in Aberdeen were selling at 10% above marketed price. You just needed to have cash to fill the void between what your mortgage company would give you and the price of the property.

twigpig

Surely they'll need to just stump up extra for their deposit then. Nice that your house is in demand

chanz4

ACG wrote: »

Personally I am anti cash buyers. On more than one occassion I have known them to reduce their offer at the last minute, knowing that the vendor is almost forced to accept it.

Because they do not need a Mortgage, they can afford to play a few more games as they do not need to wait for offers ot be reissued.

I agree in principle that the state of the buyer matters, but cash buyers are not as good as they are made out in my opinion.

Fully agree, we had x2 buyers cash think they can gazump us