Down Mortgage Valuation

mrstemperton

Myself and my husband are first time buyers, we found the perfect house but it had only been on the market a week. Had been fully refurbished, huge garden, ideal location etc etc. So we made a couple of offers but all were turned down as there was "so much interest" in the property. We wanted the house so we were willing to offer the full asking of £149950. Fast forward a few weeks and the mortgage valuation came back yesterday.... £138k!! We spoke to the estate agents who said that the surveyor has been down valuing everything and that he has a reputation for it. Great. So this is the spiel they're gonna pass on to the seller. But come on, this isn't just down valuing, it's £12k! What are the chances another surveyor is going to value it at a lot more?

So I was wondering if any of you have any experience in this situation please? Or if you were the seller, would you just go on to the next buyer and hope you could get more or find someone willing to pay the difference? I can't see a lot of people having an extra £12k lying about, but it's possible. I have to wait now until the valuation document comes through so I can send it to the estate agents before they'll even talk to the seller so I've just got to sit, wait and worry

BLOW_FLY

Was this your lenders surveyor that put the value on or a surveyor you employed?

If it's the latter it won't make any difference, if it's the former then it's an issue. Also if it's the former you won't get to see the valuation document neither will the EA.

Slightly confused.... :undecided

BF

mrstemperton

It's the lenders' surveyor that valued the house at £138k.

My broker phoned me yesterday and told me that I would be sent the valuation document and the estate agent said I would have to send it to them before they can speak to the seller. I don't know exactly what they're going to send me, it might just be a letter with the valuation on it to prove that's what they've valued the house at.

BLOW_FLY

Ok I understand now.

Either you're going to have to find another £12k or your seller is going to have to lower their expectations.

You could of course see if they will 'meet in the middle' but you'll have to find £6k in hard cash and they 'lose' £6k. They're unlikely to want to do that because IMHO as they will probably see it as losing £6k (the fact they never had it in the first place won't occur to them) but it depends how motivated they are to sell.

Your lender could have just saved you from seriously over paying, look on the bright side :money:

BF

mrstemperton

Yeah, that's what I thought, that their mindset is that they're losing money and if they can get a few grand from another buyer (I don't have any extra thousands sitting in my bank at the moment) then it's probably worth it to them.

F*ck it. I'll go on holiday instead.

kingstreet

Think about another application to a different lender, one offering a free valuation, to see if a different surveyor attaches a higher value.

That's what I'd expect the EA to come back with.

Cirias

I can empathise with you because we had the valuation come back OK but now our lender has decided to approve our application but lend us £13K less than we need to buy the house!! We are appealing through the BDM but no idea if it will be successful or not.

hounsehunterftb

I was damn worried about our valuation too. Thought we are over paying a lot. But it came out fine. I can very well understand what you might be feeling as failed valuation was something that use to run in my mind all the time.

But I had decided that if the valuation came lower than the offer price, I would take the report back to the estate agent and renegotiate or be prepared to walk away. You can do the same.

Its a tough decision really and differs from circumstances for each

hounsehunterftb

Just out of curiosity, who are the surveyors ? And lender?

Thrugelmir

mrstemperton wrote: »

Had been fully refurbished, (

When was the property last sold and how much for? Has it been turned round for a sizable profit.

mrstemperton

Cirias wrote: »

lend us £13K less than we need.

WHAT?? Why have they done that?!?!