House undervalued (first time buyer)

lookstraightahead

Why do you want to pay more than the house is worth?

alumende27

G_M wrote: »

* find a different lender and hope to get a different valuation

Be aware that many lenders use the same valuers (Countrywide seems to be the popular choice). So even if you went with a different bank you may end up having the same person go out and value the property.

eddddy

Al_Zombie wrote: »

The advisor has suggested we get 2-3 different values completed to challenge it, but of course that will cost us each time.

Are you sure you've got that right?

The requirement is usually for 3 comparables.

i.e. Details of 3 similar properties nearby which have sold recently, at a higher price.

The estate agent could normally provide details (at no charge).

But even then, it's very rare for a challenge to succeed. The valuer will not want to concede that they made a mistake in their valuation.

Gwendo40

Al_Zombie wrote: »

Of course, but there is a string of bidders with houses to sell and much larger deposits.

And an offer of £5k lower than the asking price would get laughed at.

Who told you this?

The nice estate agent?

lookstraightahead

Really you must start seeing this major purchase as a serious financial responsibility. You are asking, almost pleading, with people to let you pay more for a house than what it is worth. House prices go down as well as up and it's not a good start to potentially be in negative equity straight away. House prices are generally going down at the moment not up. Please take a reality check and stop throwing your money away

Goldust

lookstraightahead wrote: »

Why do you want to pay more than the house is worth?

This was my first thought too. And pay more than the asking price if I've read it correctly.

Mutton_Geoff

It's all relative as well. £5k/£10k off what? A £90k place or £900k house?


Why is knocking £5k off not possible? I knocked £100k off my last purchase even though it had already been reduced 10%.

c_tyler

It happened to us when we were buying our first house. We had an offer accepted 10% above the asking price. When the house was valuated by the bank, they said it was not worthy more than the asking price. So we basically told them that they could either drop the price and accept the offer for the asking price, or we were not going ahead. The estate agents also pressure the seller, and they accepted in the end.

Do not pay more than what the house is valued for. It doesn't make sense.

G_M

lookstraightahead wrote: »

Why do you want to pay more than the house is worth?

Presumably because he believes the property is worth more than the Valuer.

Valuations are not a science- there's no 'right' answer'.

And properties are subjective- the OP may be happy to pay more for this property which ticks all his boxes, than you or I would.

It's not always just about the money - it's about the next 5, 10, 20 years of your life.

Crashy_Time

lookstraightahead wrote: »

Really you must start seeing this major purchase as a serious financial responsibility. You are asking, almost pleading, with people to let you pay more for a house than what it is worth. House prices go down as well as up and it's not a good start to potentially be in negative equity straight away. House prices are generally going down at the moment not up. Please take a reality check and stop throwing your money away

And transactions and mortgage approvals are going down as well meaning that prices need to go down a lot more.