Pulling out of a sale

Pinkblue19

Hi all,

Need some advice! I have just had the valuation back and its £9000 less than what offer i put in. The bank (who organised the valuation) is asking for some feedback to see what gets said. However, i am a FTB and feeling bad at the idea of pulling out of the sale! Is it a common thing to happen?

Thanks
B

middleclassbutpoor

The valuer acts for the bank to say that the money they are lending is secured against an asset that is worth what you are paying .

They haven't valued it at that unfortunately. You should now proceed to speak to the agent who is selling this and explain the valuation has come back at 9k less and that you would like to adjust your offer based on this.

The outcome of this may be one of a few ways

1- You seller accepts and realises they had got top dollar in your offer.
2 - The seller refuses and requests that you get another valuation - which may mean applying to another lender (speak to your broker about this if this option is presented)
3 - You are asked to make up the difference in cost - so increase your deposit
4 - they come down a little in price and you find the difference.

Reality is though, the valuer is not down valuing for the sake of it, they are valuing it to protect you and the lender.

Bossypants

Pinkblue19 wrote: »

Hi all,

Need some advice! I have just had the valuation back and its £9000 less than what offer i put in. The bank (who organised the valuation) is asking for some feedback to see what gets said. However, i am a FTB and feeling bad at the idea of pulling out of the sale! Is it a common thing to happen?

Thanks
B

To add to the advice above, don't feel 'bad' about pulling out of a sale if the property turns out to not be what you thought it was when you offered. That's precisely why all the surveys, valuations and legal bits happen before anything becomes binding, so that you can know as much as possible about a property and be free to walk away if what you discover doesn't suit you.

Thrugelmir

Pinkblue19 wrote: »

I have just had the valuation back and its £9000 less than what offer i put in.

Why? Have particular maintenance issues been highlighted for example.

kinger101

Don't feel bad about it. It's very common. However, you have other options.

(a) ask vendor to reduce price.
(b) pay over the valuation (by getting higher LTV or making up the difference)
(c) a combination of (a) and (b).

You've not said how much over it is. I might worry about £9K on a £100,000K property. I'd be less worried on a £500K property, particularly if I planned staying there for many years.

Sibz

Did you not get a survey done yourself prior to putting in an offer?

Bossypants

Sibz wrote: »

Did you not get a survey done yourself prior to putting in an offer?

Assuming OP is in England, the survey generally comes after the offer has been accepted. If it turns up something unexpected, the buyer may attempt to renegotiate, but the seller isn't obliged to agree.

Sibz

Bossypants wrote: »

Assuming OP is in England, the survey generally comes after the offer has been accepted. If it turns up something unexpected, the buyer may attempt to renegotiate, but the seller isn't obliged to agree.

Fair point - though I'd still think that the survey would come before you instruct your mortgage company to proceed?