Help with wording reduction request to vendors please

newbieFTB

[SIZE=-1]The house I'm buying has it's mortgage valuation survey booked in for next week (alongside a homebuyer survey), maybe it's just FTB nerves but I'm worrying it's not going to be valued at asking price. I'd be more than happy to pay the asking price, 300k, as I've fallen in love with the house but if it is valued lower this means the bank will only lend me what they feel it's worth so I intend to ask the vendors (via the estate agent) if they'd consider reducing the asking price to the figure the surveyor values it at. [/SIZE][SIZE=-1]
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[SIZE=-1]I do actually think the asking price is higher than the norm as next door (identical but fully refurbished whereas 'mine' is fairly dated) went for 280k a few months back. No other houses have sold for 300k in the last 6 months within 0.5 mile, which I believe is the basis of appeal to a mortgage valuation.[/SIZE]

[SIZE=-1]My mortgage is based on a 10% deposit so if it's valued at say 280k, they would only lend me 252k plus my 28k deposit, leaving a shortfall of 20k between what they'd lend and the asking price. I realise this is my problem, not the sellers [/SIZE][SIZE=-1][SIZE=-1]and that the seller may be relying on the full asking price to fund their next purchase, however if I pull out if it's downvalued what's to say the next buyer won't do the same when it gets to survey/valuation stage.[/SIZE][/SIZE]

[SIZE=-1][SIZE=-1]As a worried FTB with too much time on their hands I wanted to draft an email to send to the solicitor asking the vendor to consider a price reduction but would appreciate help with the wording.[/SIZE][/SIZE]

melstar11

Why worry over something you don't yet know? If you feel you have offered too much whatever the valuation may come back with, then you need to act now. Nothing wrong with saying you were over eager and have now reconsidered, you don't want to mess anyone around further down the line, etc will they accept a revised offer? Be prepared for them to say no and you'll have to find somewhere else.

sparky130a

Rewind.

Why have you offered more then you think the place is worth?

Keep looking and stop stretching your limit. There's plenty of properties out there.

newbieFTB

melstar11 wrote: »

Why worry over something you don't yet know? If you feel you have offered too much whatever the valuation may come back with, then you need to act now. Nothing wrong with saying you were over eager and have now reconsidered, you don't want to mess anyone around further down the line, etc will they accept a revised offer? Be prepared for them to say no and you'll have to find somewhere else.

I don't feel I've offered too much, I'd happily pay 300k - it's just I'm reliant on the bank to agree that it's worth this much too! I really do want this house but may not be able to buy it if the bank don't agree it's worth 300k

sparky130a wrote: »

Rewind.

Why have you offered more then you think the place is worth?

Keep looking and stop stretching your limit. There's plenty of properties out there.

As above, 300k is not stretching my limit - the mortgage is affordable and I have 10% deposit - what I don't have is the shortfall if the bank downvalues it at survey stage. I really do want this house and would be very happy to pay 300k for it.

If it's downvalued my only option is to ask the vendors to reconsider a lower offer, hence asking for help with the wording. As I said in my OP, this hasn't even happened yet - I'm a worried FTB with too much time on their hands!

The_Logans

If the mortgage valuation comes back with a shortfall, other potential buyers will have the same problem. No point worrying yet, worry when it happens (if it happens). When is the survey booked for?


When my DH had this situation in the first house he bought, he lowered his offer to a bit over the mortgage valuation. The vendors argued a bit but they accepted his lower offer in the end as he was a chain free buyer.

newbieFTB

The_Logans wrote: »

If the mortgage valuation comes back with a shortfall, other potential buyers will have the same problem. No point worrying yet, worry when it happens (if it happens). When is the survey booked for?

I did think this too but I still need to ask the Q of them, hence asking for help with how to phrase it. Survey is booked for 10th May so I have 10 days to overthink things :rotfl:

Edit: just seen your edit too, I'm chain free too and have told the vendors I can work to any timescale they request

Mr_da

I think I'd wait until the valuation comes back first then you will know what you are playing with, though do understand that you might want some rough idea of what to write if it does come down to it.

ACG

You would go to the agents and say it has been valued at £xxx based on whatever it says on the valuation (usually comparables). And put the ball in their court.

Dont email, pick up the phone and discuss it with them. As much as I do not like agents, they want the sale to go through to get their commission. They may ask you to try another lender/surveyor.

eddddy

Just a gentle warning - I guess you're hoping that any negotiation like this will be handled by email.

In reality, when the email arrives, I suspect the EA will get straight on the phone to you. The EA's initial position might well be that a reduction is not possible and/or you're being ridiculous in asking for one.

You will need to make the EA/seller believe that you will walk away if don't get a reduction. Otherwise they have no reason to agree to a reduction.

cattie

As others have said, try not to worry 'til you know that you need to.

Anyway you don't have to faff about writing reasons why your offer is reduced, you just come out & tell them that valuation came back less than selling price & as you'll have a shortfall in your mortgage, you can't go any higher than valuation price. It's actually quite a common occurrence as I'm sure ea will be aware of. If sellers are keen for sale to go ahead, they should be quite willing to renegotiate.

newbieFTB

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ACG wrote: »

You would go to the agents and say it has been valued at £xxx based on whatever it says on the valuation (usually comparables). And put the ball in their court.

Dont email, pick up the phone and discuss it with them. As much as I do not like agents, they want the sale to go through to get their commission. They may ask you to try another lender/surveyor.

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[SIZE=-1]Thanks, I was hoping to email rather than phone as any replies given can be more considered. I would be willing to try another lender if it comes to it but fear that may not help matters due to the fact that it does look like this house is a bit overpriced, albeit it's a price I would willingly pay if I can get a mortgage.
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eddddy wrote: »

Just a gentle warning - I guess you're hoping that any negotiation like this will be handled by email.

In reality, when the email arrives, I suspect the EA will get straight on the phone to you. The EA's initial position might well be that a reduction is not possible and/or you're being ridiculous in asking for one.

You will need to make the EA/seller believe that you will walk away if don't get a reduction. Otherwise they have no reason to agree to a reduction.

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[SIZE=-1]Yep, I was hoping it could be done by emails as I feel more confident in giving the 'right' answers given a bit of time to think about it . Although the EA is also selling the house my vendors are buying so I'm hoping that might mean he tries to persuade the vendors to reduce to whatever the surveyor values it at.
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cattie wrote: »

As others have said, try not to worry 'til you know that you need to.

Anyway you don't have to faff about writing reasons why your offer is reduced, you just come out & tell them that valuation came back less than selling price & as you'll have a shortfall in your mortgage, you can't go any higher than valuation price. It's actually quite a common occurrence as I'm sure ea will be aware of. If sellers are keen for sale to go ahead, they should be quite willing to renegotiate.

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Thanks, I was thinking of going into loads of details, showing links to nearby sold properties etc but seems that might be pointless then. I'm trying not to worry/overthink but it's just in my nature I'm afraid![/SIZE]