Offered £15 higher than valuation but still rejected

W_First_Time_Buyer

Hi All, we are FTB and we need some advice!

Firstly, the house we are really interested in was marketed at £345k. After negotiating, our offer of £337,500 was accepted. So we thought everything is going smoothly, but we are WRONG! The valuation came back and the property was only valued by Nationwide at £315k. That's £22,500 lower than our offer and £30k lower than their first asking price! Not sure if the house was just undervalued?

So, we told seller our ideal offer is £320k, but we can do £325k. But that is still rejected! and now house is back on market.

What to do??

We really want the house, it's STPP, newly refurbished kitchen, parking, basically everything we need! We did think the house at our first offer of £337k is already a good price compared to the properties we have viewed.

Should we still go ahead?

Comms69

W_First_Time_Buyer wrote: »

Hi All, my family is a FTB and we need some advice!

Firstly, the house we are really interested in was marketed at £345k. After negotiating, our offer of £337,500 was accepted. So we thought everything is going smoothly, but we are WRONG! The valuation came back and the property was only valued by Nationwide at £315k!!! That's £22,500 lower than our offer and £30k lower than their first asking price!! CRAZZZZY!! Not sure if the house was just undervalued or seller are greedy??? - How are they greedy? Sell me your car for £10. No? You're greedy!

So, we told seller our ideal offer is £320k, but we can do £325k. But that is still REJECTED! and now house is back on market.

WHAT TO DO????

We really want the house - then find the money! , it's STTP, newly refurbished kitchen, parking, basically everything we need! We did think the house at our first offer of £337k is already a good price compared to the properties we have viewed.

Should we still go ahead!??

I suspect they will not be interested in negotiating again

[Deleted User]

W_First_Time_Buyer wrote: »

WHAT TO DO????

Firstly, take some deep breaths and step away from the exclamation marks. You're going to give yourself a heart attack.

If they won't accept your offer, you'll need to find a property you can afford.

W_First_Time_Buyer

Comms69 wrote: »

I suspect they will not be interested in negotiating again

Sorry, if I came out so negative. As I said, we are first time buyers so we have no clue on how it really goes. But how are we greedy? The house was valued at £315k only?

We can afford to buy the house, but we could be overpaying??

thriftylass

W_First_Time_Buyer wrote: »

Hi All, my family is a FTB and we need some advice!

Firstly, the house we are really interested in was marketed at £345k. After negotiating, our offer of £337,500 was accepted. So we thought everything is going smoothly, but we are WRONG! The valuation came back and the property was only valued by Nationwide at £315k!!! That's £22,500 lower than our offer and £30k lower than their first asking price!! CRAZZZZY!! Not sure if the house was just undervalued or seller are greedy??? They can ask how much they want for the house if someone is willing to pay it.

So, we told seller our ideal offer is £320k, but we can do £325k. But that is still REJECTED! and now house is back on market.

WHAT TO DO????

We really want the house, it's STTP, newly refurbished kitchen, parking, basically everything we need! We did think the house at our first offer of £337k is already a good price compared to the properties we have viewed.

Should we still go ahead!??

They don't have to ask valuation price. Maybe they had a bad mortgage=, are in negative equity etc etc and need the extra money if they can find someone to pay it. No harm in trying on their part. If you can't afford it or unwilling to pay their price, look somewhere else or wait and see if they over time reduce it.

Comms69

Whether you're FTB or not is irrelevant.


The house is valued at £315k; it's not for sale at that price.


Much like any asset you own; it has a value, but I cannot force you to sell it at that price can I? (hence my car example)

thriftylass

W_First_Time_Buyer wrote: »

Sorry, if I came out so negative. As I said, we are first time buyers so we have no clue on how it really goes. But how are we greedy? The house was valued at £315k only?

We can afford to buy the house, but we could be overpaying??

Then don't buy it. If you think it's only worth £315K and you don't/can't pay more, then leave it as the asking price (not the value!) is £345K

spadoosh

Comms is referencing you call the seller greedy because they have determined a price they are willing to accept. Its not greedy, it might be optimistic but that doesnt matter to you.

THe difference in value is less than 10% of the property value, that amount in itself should suggest their asking price isnt that far fetched.

Your issue is you need to borrown money to fund buying the house. The people you have asked to borrow money from have determined theyre only willing to lend up to the value of £315k. Fromt hat you either need to negotiate the price down or find more money.

You can try another lender who might use a different valuer and as such value the house differently. There not a lot of different valuers though so this route might be unlikely.

So pretty much all you can do, if theyve rejected a lower offer and youre unable to find more money, is look elsewhere leaving your offer on the table.

shortcrust

Friends of mine were the sellers in a similar situation last year. They took the view that the low valuation was the buyers problem rather than theirs. They'd had plenty of other interest including a cash buyer so had no intention of renegotiating.

I've noticed a lot of threads on here recently from buyers who think sellers are being greedy or unreasonable for not selling their home at a price of the buyer's choosing. I think it's an odd way of viewing things.

W_First_Time_Buyer

We are just having doubts as we were told someone was supposed to purchase the property at £330k. But for some reason the sale fell through.

This has house been on the market for nearly a year now.

We've also done lots of research and read so many threads, indicating that sometimes sellers' asking price is based on the value of house they wanted to purchase for themselves. So that probably messed my head into thinking they are greedy huh. I admit I'm wrong into thinking that.

PasturesNew

The value of a house is what somebody with money is prepared to pay for it.

A mortgage valuation is what a lender is prepared to lend on it, based on the house, the borrower and what their Head Office are telling them to do with regards "future risk/the market as we think it'll be in the next year".

If you pull out, maybe they will find another buyer who needs to borrow less and has more of their own money to put into it, and/or who has a higher salary. The same lender, with a different buyer, might even offer to lend them more (value it higher).

If you pull out, maybe the seller will never sell at that price and will drop the price.

They don't have to drop their price because you want them to.

There is no such thing as "an actual value of a house"..... it's just a game of Poker with seller, buyer, lender, cash on the table .... until somebody chucks the right cards down.