Bidding over asking price - risk bank won't value it as high as we pay?

GeorgeRob

kingstreet wrote: »

It's worth bearing in mind the lender doesn't value the property. This is delegated to a chartered surveyor with whom the lender contracts for a mortgage report & valuation.

Surveyors typically use comparables; the recent (last four months) sold prices of similar property in the vicinity (under 0.5 miles) to establish the if the value hits the agreed price.

For a guide, check the sold prices on Rightmove to establish of there are comparables for your chosen property;-

http://www.rightmove.co.uk/house-prices.html

Thank you. I had checked this already, so was feeling fairly happy with our bid. Its an end terrace, which kind of puts it between the values of a semi and a terrace I would imagine. So £199 seems OK judging by the rightmove table for the area:

http://imgur.com/a/rRZ5s

Cakeguts

GeorgeRob wrote: »

Thanks, that's a very sensible, helpful and reasonable reply!

It's not uncommon in Manchester at the moment. My friend paid £14k over the asking price for his house, and the bank agreed that was the value for the mortgage.

This house isn't cheaper than the others we've seen (same asking [price as 3 others nearby), but it is much more nicely decorated, and the 3rd bedroom is slightly larger.

No road humps. No pub, no pub car park. railway nearby but several streets in between. It does have off street parking. Don't know about the roof.. will presumably find out about that in the survey? Its an end terrace, so no room for new block of flats next door. Is not next to a motorway, fire station or ambulance station. No flood risk.

It is however only about 1/2 km from a football stadium though, which will be a pain on match days. I presume this is a big factor. But then, all the houses nearby are!

There were 27 viewings of the house on one day last saturday, and there's been 8 bids, 7 of which were over the asking price.

Go and look at it again on a match day and see what it is like then. You don't want any nasty surprises.

GeorgeRob

Just found out we didn't get the house. The vendor went with a full cash offer in excess of £200k from an investor in London. £25k over the asking price!

Wake_up_call

GeorgeRob wrote: »

Just found out we didn't get the house. The vendor went with a full cash offer in excess of £200k from an investor in London. £25k over the asking price!

Are you sure the EA isn't bluffing to get you to increase your offer?

Expect a call in a week to say it's miraculously back on the market.

Cakeguts

GeorgeRob wrote: »

Just found out we didn't get the house. The vendor went with a full cash offer in excess of £200k from an investor in London. £25k over the asking price!

You may have had lucky escape. Now you can look for something a bit cheaper and have a bigger deposit. Are you prepared to live outside the centre of Manchester and travel in?

GingerFurball_2

As someone who's just gone through the FTB process in Scotland, England sounds like a lawless free-for-all.