First Time Buyer - Scotland

NicolaScot

Hi all,

I recently viewed a property which was advertised as offers over 125,000, and the valuation on the home report was 130,000. Having seen several properties go under offer fairly rapidly (before we were able to view), I made an offer for 130,000 which was accepted.

In hindsight, I should probably have offered lower etc etc, but we love this house and think it is worth 130,000 (by that I mean that we are happy to pay that, and the Home Report has valued it at that too.)

We are applying for our full mortgage now (AIP was for 155,000 so we are hoping that it will go through). Our worry is that our lender wish to do their own valuatoon, and we are trying to prepare ourselves for what happens if that valuation is lower than the Home Report valuation. Is it a case of our solicitor negotiating a lower offer with the seller, or us paying the difference in cash? There aren’t many properties recently sold in the same village so it’s hard to gauge the value of ‘ours’ against others.

Any advice would be much appreciated!

Thanks x

Pixie5740

NicolaScot wrote: »

Hi all,

I recently viewed a property which was advertised as offers over 125,000, and the valuation on the home report was 130,000. Having seen several properties go under offer fairly rapidly (before we were able to view), I made an offer for 130,000 which was accepted.

In hindsight, I should probably have offered lower etc etc, but we love this house and think it is worth 130,000 (by that I mean that we are happy to pay that, and the Home Report has valued it at that too.)

We are applying for our full mortgage now (AIP was for 155,000 so we are hoping that it will go through). Our worry is that our lender wish to do their own valuatoon, and we are trying to prepare ourselves for what happens if that valuation is lower than the Home Report valuation. Is it a case of our solicitor negotiating a lower offer with the seller, or us paying the difference in cash? There aren’t many properties recently sold in the same village so it’s hard to gauge the value of ‘ours’ against others.

Any advice would be much appreciated!

Thanks x

Did you make your offer subject to the mortgage lender's valuation?

In my experience the mortgage lender uses the home report valuation or their surveyor comes up with the same valuation so I doubt you have anything to worry about.

hazyjo

There's enough to worry about when buying a house. Try not to worry about the things that haven't happened and might not happen. Cross that bridge if you come to it.


Sounds like you've pitched it right to me taking into account the offers over price and the home report price.

scottishblondie

It’s very unlikely that the mortgage lender will want to perform their own survey. 99% of the time they rely on the home report. If you’re regretting your offer you can try to renegotiate, but to be honest with an OO of 125k I’d say they were never going to accept anything less than HR value.

Hasbeen

scottishblondie wrote: »

It’s very unlikely that the mortgage lender will want to perform their own survey. 99% of the time they rely on the home report. If you’re regretting your offer you can try to renegotiate, but to be honest with an OO of 125k I’d say they were never going to accept anything less than HR value.

In Scotland the mortgage lender will only accept the Scottish home report if it is done by someone who is registered with them.

The Scottish home report is a very basic report and gives usually the valuation the property is marketed at.

Prospective buyers should always offer "subject to survey"

davidmcn

Hasbeen wrote: »

In Scotland the mortgage lender will only accept the Scottish home report if it is done by someone who is registered with them.

The Scottish home report is a very basic report and gives usually the valuation the property is marketed at.

It's considerably less basic than a mortgage valuation report (a home report is typically about 40 pages long, 4 of which are a mortgage valuation report).

Even if the lender instructs their own valuation, the valuer will know the agreed price and HR valuation and is quite likely to agree with them unless matters seem seriously amiss.

NicolaScot

Thanks all for your replies. Our offer is subject to getting a mortgage, which we are happy with. If the valuation is 130,000 then we are happy to pay that. I just like to prepare myself for the possible problems, but I will try to relax! Thanks again.

Hasbeen

davidmcn wrote: »

It's considerably less basic than a mortgage valuation report (a home report is typically about 40 pages long, 4 of which are a mortgage valuation report).

Even if the lender instructs their own valuation, the valuer will know the agreed price and HR valuation and is quite likely to agree with them unless matters seem seriously amiss.

Sorry. was not interested in valuation from reports they all say the same.

I was indicating these are very basic reports the Scottish homebuyers filled up with meaningless standard put in pages etc.

I quoted "subject to survey" meaning the buyer should commission for themselves a more in depth report on the condition of the property.:)