Down valued by £500

3miry

We initially put an offer in (Nov 2017) for £126000 on a part-exed property whiich was accepted. Sellers dragged things out for months and in March 2018 some property damage occurred. Sellers offered £500 “cash back on purchase”. Right before exchange our brokers informed us this was not possible so we renegotiated a reduction to £125500 sale price (they refused to fix the damage or anything other than this small reduction). Unfortunately this was the day before exchange (and completion, as our mortgage offer expired on 15th May and all this happened on 14th May) and our solicitors had already requested funds from nationwide. They had to send the funds back to the lender and the offer expired.

Our broker found us a new deal with Accord so we got the application under way. The valuation survey was past Friday and has now come back stating they have valued the property at £125000 - £500 less than the selling price.

I’m so frustrated at this whole ordeal. We’re FTB, chain free, but the sellers (builders) refuse to drop the price any more and insist it’s sold as seen. We still have to foot the bill for the damage (one fence came down and French doors hinge was attempted forced open) - now it seems we have to foot the £500 difference in mortgage vs sale price too. It’s been 7 months now and the damage only happened because the property was empty for so long.

What’s the chances the lender will negotiate up to £125500 loan?

westernpromise

£500 is nothing. Nobody knows what a house is worth to within 0.4% FGS.

diggingdude

If you want this house spend £500. It's peanuts in the grand scheme of things. Or....find another property. I'm pretty sure this is what the experts will say to you

exiled_red

If the property is valued at £125000 you won't be able to borrow more than that, you will have to make the difference up yourself.

poppy10_2

If the builders don't have enough pride and faith in their product to put right the damage before the sale, who knows what else might go wrong with the property?
Walk away

Thrugelmir

poppy10 wrote: »

If the builders don't have enough pride and faith in their product to put right the damage before the sale, who knows what else might go wrong with the property?
Walk away

Not their property. It's a p/ex.

flashg67

But if you don't buy, the same problems will come up with the next survey - makes me suspicious they won't spend £500 (or maybe less to them as a builder) to fix the issue

Doozergirl

I bet the surveyor got their numbers mixed up and read more zeros instead of more fives.

Contact them and ask if they'd made an error. No one under values by £500. It's pointless.

da_rule

Is their need to sell greater than your need to buy? If there are other properties that you are interested in that you can afford and do not need the additional works then why not just walk away? You may find the sellers come chasing you with their tails between their legs.

foxy-stoat

So you have already spent out on legals and searches/surveys and are worrying about £500 on a 6 figure property purchase - maybe you are not ready for house ownership just yet.

shortcrust

Doozergirl wrote: »

I bet the surveyor got their numbers mixed up and read more zeros instead of more fives.

Contact them and ask if they'd made an error. No one under values by £500. It's pointless.

I think this is bang on the money. Perhaps whether they’ll admit the error is another matter?