Home Buyer’s report valuation over 8% lower than the offer

Ironek

Hi everyone,

We’re planning on buying our first house and have just had the Home Buyer’s survey, which has highlighted some level 2 & level 3 issues (tried attaching screenshots of the report but it wouldn’t let me) and has valued the house at 18k less than we offered - the house was on the market for £215000, we offered £208000 and the valuation on the report was £190000. Also, the house was bought for £160000 in 2016.
We’ve applied for a 90% mortgage and are still waiting for the lender’s valuation. However, having received the Home Buyer’s report should we go back to renegotiate the price? If so, how much should we offer? Should we go at the valuation suggested on the report? Also, would it be handy sending the report to the seller (the house was on the market with Purple Bricks, who encourage direct contact between sellers and buyers)?

Candyapple

You have 3 choices:
1. Pay the extra £18k out of your own pocket if you like the house that much
2. See if the seller is willing to negotiate the price down to either £190k or possibly meet you halfway, in which case you would still have to pay an extra £9k out of your own pocket
3. If the seller refuses to negotiate then walk away and put the costs you have incurred such as for the survey down to experience and continue house hunting

Lioness_Twinkletoes

Has it really increased more than £30k in 2 years???

eddddy

Wait to see what your mortgage lender values the property at - to see if it's different.


You've commissioned the homebuyer's survey, so the surveyor will act in your interests.

When instructed directly by the buyer, many surveyors will emphasise (exaggerate?) problems, and value low - so that you can use the survey as a 'negotiating tool' to get a price reduction.

By all means use the survey to negotiate a lower price, but also bear in mind whatever valuation your lender gives.

(You might get a clearer opinion over the phone, if you give your surveyor a quick call.)


Edit to add...

I think Candyapple (above) is thinking of a mortgage lender's valuation, not a valuation commissioned by you.

PurplebricksUK

Good Morning Ironek

Hope you are well. Have you made a decision on what you would like to do? More than happy to help with this if you would like to send a message over with your details/the property details?

Thanks!

Debbie

eddddy

PurplebricksUK wrote: »

Good Morning Ironek

Hope you are well. Have you made a decision on what you would like to do? More than happy to help with this if you would like to send a message over with your details/the property details?

@Ironek - obviously, you need to think carefully before contacting any company reps through this board.

If you PM the estate agent with your name and details, they will find out who you are - and match you to your post above, and any future posts using that username.

If, for example, you want to discuss your negotiating strategy on this board (e.g. "I'll offer x initially, but my limit is y."), you might prefer the estate agent not to know who you are.

Crashy_Time

Lioness_Twinkletoes wrote: »

Has it really increased more than £30k in 2 years???

No, offer them 155k, and even then you will still be over-paying.

Ironek

Thank you for all the replies and advice.

We’ve now received our mortgage offer for the 90% of the original offer. However, they’ve not sent us their valuation (would they only do that if the valuation didn’t meet the amount we offered?).

We want to try and negotiate the price a bit. We’ve been dealing directly with the seller up to this point so I feel like we should negotiate directly with them rather than going through the EA though.

On the other hand we’ve reread the report many times now and the things that need doing immediately according to them are mostly the things that they were not able to investigate fully, eg.:

‘Electrics.
The property is connected to the mains electricity supply. The meter and dated fusebox are located in the hall.
The system is dated and you should budget for general upgrading works.
Regulations concerning electricity safety are constantly being improved. The IEE regulations recommend that installations are tested every 10 years and upon change of occupancy. We do not know when this system was last tested ! a test is probably now due.
If you wish to obtain information as to the safety of the installation and how it can be improved, then you will need a specialist report.
In the absence of a current test certificate the installation should be checked (prior to exchange of contracts) by an NICEIC registered electrician who should carry out any necessary repairs or upgrading works to comply with current regulations.’

Or

‘G6 Drainage
The property is assumed to be connected to the main foul sewer but this point obviously could not be checked.
We were unable to locate any inspection chambers within the site/gardens and cannot advise further.
The drains and above ground pipework have not been tested. We cannot confirm that they are free from leaks. It is important that drains are maintained without leaks for when leaks occur, close to foundations, they could disturb the stability of the building. If you require further and better information in this respect, then a specialist test and inspection will be necessary.
Some of the wastes discharge into a hopper head and also to an open gulley. The hopper and gulley should be kept clear of debris at all times and will need to be regularly inspected. Blocked hoppers, particularly, are a regular source of damp penetration in buildings’

Therefore I’m not really sure whether we should be negotiating the price or not.

Crashy_Time

Lioness_Twinkletoes wrote: »

Has it really increased more than £30k in 2 years???

If sentiment and cheap credit were in abundance, and there wasn`t the "threat" of rising interest rates, well maybe....probably :rotfl:in the nutty world of UK property, but in this market probably not.