Valuation!!!

moneysavinmonkey

han2505 wrote: »

I have already told them that i wont pay the difference if the value doesnt go up or the builders dont decrease the house as i refuse to start a new home in negative equity.

I'm just worried why our house, which is the same as the rest of the other houses is the only one being under valued???

Do you definately know what the other houses were valued at?
Also when were these other houses valued...

It is very recently that the the housing market has started to look a little unsteady, so perhaps the valuer has just started to be more cautious... if he was asked to revalue the other houses in the present climate he may devalue them also.

han2505

Cazza wrote: »

He would probably have been told by the developer that your deposit was being paid by them, either that or your borker (if you have one) would have disclosed it on the mortgage application form. If neither of these, he will be a local surveyor that knows, as a result of doing other surveys on other properties that the builder is currently offering 5% gifted deposit. You have to disclose the deposit to the mortgage company, you don't really have a choice, if the valuer hadn't found out the solicitors would have told the mortgage company and they would have gone back to the surveyor anyway.

Which mortgage company are you using?? The are some lenders who just do not like new build proerties (new build is my main area of business!) Did you do the mortgage yourself or did you use a broker? Did you use a broker reccomended by the builder??

We dont know what mortgage company were using, but we went with the mortgage adviser that the builders told us to. Didnt look round just went straight with theres.

han2505

Conrad wrote: »

Most lenders are now ultra cautious on new builds and many now refuse to lend on them above 75% if at all.

Your situation is not unique, new build prices are tumbling - see my thread on bargain repos where flats are selling for £70,000 having been sold for £140,000 12 months ago.

There is in most areas an over supply of new build.

Cant you see this is ablessing in disguise. Get your mind right on this and you will make the right decision. YOU HOLD THE WHIP HAND NOT THE DEVELOPER.

Were trying to be careful with everything and it's just that this was the last house so they knocked a bit of already for us. I am re-locating as well so this is just adding to the stress of it all.

I understand that prices are meant to be falling, just that if it all falls through now we will have lost all the money we have paid into Solicitors etc so far....

han2505

moneysavinmonkey wrote: »

Do you definately know what the other houses were valued at?
Also when were these other houses valued...

It is very recently that the the housing market has started to look a little unsteady, so perhaps the valuer has just started to be more cautious... if he was asked to revalue the other houses in the present climate he may devalue them also.

The houses were valued about 1 month (if that) before ours, dont know if it is with the same company though.

I know the house prices are meant to be falling so i would be happy if that were the case as them the builder might drop the price if it wont sell. I'm just worried if they refuse to do it where that leaves us???

Doozergirl

That £6579 doesn't even exist, let alone it being part of the value of the property. You are paying £125,000 for the property, they con the mortgage co into believing that 5% of the deposit is already paid (mortgage lenders aren't stupid btw, there's a reason why they only allow 5% deposit paid)

If you took what you were offered and didn't even haggle then you should easily be able to knock £7000 off the real asking price which is £125,000. Whether you have a deposit of your own to put towards that is another question.

Who told you the valuer was annoyed? Were you there? Sounds to me like the sales office is trying to convince you that he downvalued it because he had a grudge?! He is simply protecting the interests of the mortgage lender

There are new build flats all over the country where surveyors agreed with developer's VASTLY overinflated asking prices. They were very, very worng to do so. Simply because people get seduced and swayed by marketing and want to invest at silly prices and expect to sell for even more, doesn't mean they are right.

I would err on the side of a surveyor over a developer, or their unwitting buyer any day. Listen to what he says. No doubt there will be a similar sized, second hand house on the market for less, down the road. There always is.

Renegotiate. If they say no, then walk away. They'll come after you anyway, I bet.

EDIT: Come on! Even the mortgage co recommended by the builder is undervaluing the house. Are you really prepared to be conned into paying £13,000 over the valuation to save on conveyancing fees?

han2505

Doozergirl wrote: »

That £6579 doesn't even exist, let alone it being part of the value of the property. You are paying £125,000 for the property, they con the mortgage co into believing that 5% of the deposit is already paid (mortgage lenders aren't stupid btw, there's a reason why they only allow 5% deposit paid)

If you took what you were offered and didn't even haggle then you should easily be able to knock £7000 off the real asking price which is £125,000. Whether you have a deposit of your own to put towards that is another question.

Who told you the valuer was annoyed? Were you there? Sounds to me like the sales office is trying to convince you that he downvalued it because he had a grudge?! He is simply protecting the interests of the mortgage lender

There are new build flats all over the country where surveyors agreed with developer's VASTLY overinflated asking prices. They were very, very worng to do so. Simply because people get seduced and swayed by marketing and want to invest at silly prices and expect to sell for even more, doesn't mean they are right.

I would err on the side of a surveyor over a developer, or their unwitting buyer any day. Listen to what he says. No doubt there will be a similar sized, second hand house on the market for less, down the road. There always is.

Renegotiate. If they say no, then walk away. They'll come after you anyway, I bet.

EDIT: Come on! Even the mortgage co recommended by the builder is undervaluing the house. Are you really prepared to be conned into paying £13,000 over the valuation to save on conveyancing fees?

Thanks for this is good to hear everyones views. I know that the deposit isnt there really but we dont have a deposit of our own so thats why we went for this house.

We know that the valuation got kicked off site as we spoke to the builders today to confirm it as we didnt know whether to believe it either, and they have nothing to gain from us having it or not, and they said that they did kick someone off as he didnt have a hard hat on and hadnt told anyone he was there, but that could have been anyone i suppose.

I have said before if you read above that i would walk away if the price isnt dropped as this is my first home and i want a home not a profit place, i dont want my first home to start in negative equity. So if it means walking away then i would.....

moneysavinmonkey

any reason why you can't wait a bit and save up for a deposit?
that way you won't get straight into negative equity + you will have access to better mortgage rate + better choice of houses to buy??

I personally can't understand why anyone buys a house without one, but that seems nowadays to be a very old fashioned view!

--

I would ask the developer for a substantial discount and if they don't give it walk away... actually i would just walk away at this stage anyway!!

i realise you will loose your conveyancing fees but to me it sounds like you are saving yourself a lot more in the long run!

CB1979_2

simple tell the builder this and unless they offer a discount, they'll end up with the next buyer having the same issue anyway.