Survey lower than offer

sulphate

We had a lenders valuation done on the property we are buying but also a homebuyers survey done by an independent surveyor.

The valuation came back with the mortgage offer that valued the house at the price we have offered, but the homebuyers (which also includes a valuation) has valued the house at 15k less than offer (we offered at 310k, valuation is 295k). The house is in good condition but the street it is on sits within the central part of a new development which is in its very early stages but the plan is for a new town, 10k houses etc. The surveyor states that the building of new modern houses may devalue the older ones and the "uncertainty" of this led to the "conservative valuation".

We do not have to worry about this for mortgage purposes but is it still reasonable to ask for a reduction or negotiate on price a little?

Any advice appreciated!

G_M

Valuations are more of an art than a science. there is no 'right' valuation - just the best opinion of a professional based on his research into the property, area and his experience.

By his own admission, he has been 'conservative' (ie tending to under-value rather than over-value. And the mortgage lender has alued it at the agreed price, and is willing to take the risk of lending to you on that basis.

Having said all that, by all means show the valuation to the seller and see if they'll drop the price. They might. Might not.

What would you do if they refused? Buy it anyway or walk away?

juniordoc

It's definitely evidence you could use to support a downwards negotiation on the price.
Don't be greedy, but I expect you could get 5k off your offer with this new information altho this depends on other factors and how keen the vendors are to sell.
Best of luck with your negotiations!

davidmcn

So if you split the difference between those figures this could be £302.5k +/- 2.5%.

To put it in context, for professional negligence cases I think the allowed margin of error for valuing newbuild properties is 10%.