New build property valued at less????

Bongofish

Hi

So as some of you may know we are in the 5th week of getting a mortgage through nationwide due to our brokers not being very competent in sending the documents in at the correct time.

Anyway, we are so close to getting the offer that we got told it would be today. But I rang on Friday and they said the valuation was just being looked at. They sent me a copy of the report and it shows that they have valued the property at £5000 under what the property is for sale for. What does this mean? Will they not be too concerned as it’s only 5k and we are putting a large deposit down or is this going to set things back again as we will have to make up the difference or try and get Taylor Wimpey to come down 5k.

We were meant to be exchanging on Saturday but due to all the poor communication it seems like it’s going to be another few weeks for sure. All the company’s we have used are what Taylor Wimpey recommended as well.

Any help would be great.

Thanks

juniordoc

Yes you're going to have to get a reduction or come up with the extra.
If an independent valuation puts it at 5k less then you have good grounds for them reducing the price. Best of luck!

amnblog

Doesn't sound like this will stop you exchanging, but you might want to consider the pricing.

A question for your brokers.

the_quick

When we bought our flat 6 years ago first mortgage provider value flat 10k lower than developer price. Developer wouldn't budge and mortgage adviser said that only thing we can do to go to different mortgage provider - and we did and got same price as developer. Not sure if Taylor Wimpy would move on the price.

Thrugelmir

Bongofish wrote: »

What does this mean?

Probably disregarded some of the extras that the developer has put into the property. You'll need to fund the difference if you wish to purchase the property.

Amst

the_quick wrote: »

When we bought our flat 6 years ago first mortgage provider value flat 10k lower than developer price. Developer wouldn't budge and mortgage adviser said that only thing we can do to go to different mortgage provider - and we did and got same price as developer. Not sure if Taylor Wimpy would move on the price.

But why would you do that? If the flat isn't worth what the developers are selling it for (shock) then the original lender were doing you a favour in highlighting this. Instead you've found a lender who agrees with the over-inflated value of the property and lent against it without haggling on the price?

I hope you weren't bragging about what you did :rotfl::rotfl:

davidmcn

Amst wrote: »

But why would you do that? If the flat isn't worth what the developers are selling it for (shock) then the original lender were doing you a favour in highlighting this. Instead you've found a lender who agrees with the over-inflated value of the property and lent against it without haggling on the price?

What makes you think the first valuer was right and the second one was wrong?

Amst

davidmcn wrote: »

What makes you think the first valuer was right and the second one was wrong?

Two reasons, the common knowledge that new builds are overpriced and the fact he wanted to hear the value he was looking for rather than the one he was given.

Even if it's leveled off now 6 years later, I bet any Zoopla, or the like, check would show it dipped in price after it was bought.

kingstreet

We had a downvaluation recently.

Surveyor one valued the property at £300,000.

Surveyor two valued the property at £330,000 which is the agreed price.

Surveyor one didn't know the area, had no experience of the site and had no justification for his valuation.