Mortgage valuation has under valued

MobileSaver

Diocletian_II wrote: »

The mortgage valuer has given you the perfect tool to negotiate down the price of this house to the official mortgage valuation. I am not sure why you are so reluctant to use its full power.

Because the OP doesn't want to end up like you, still renting several years down the road?

The OP wants to get on with their life and start paying off their own mortgage rather than their landlord's; sounds like a very sensible plan to me.

MobileSaver

Crashy_Time wrote: »

10-20k + seems to be "trivial", overpaying for anything else is considered not very Money Saving. Overpaying for property is likely to be the biggest mistake someone can make in this economic climate

Oh the irony of Crashy Time educating others on the biggest financial mistake they can make. :rotfl:

Everything in life is relative; £10k extra for most cars is significant, £10k extra for a house is relatively trivial.

There's no evidence the OP would be overpaying anyway; a lender's valuation is only to protect the lender, it is not a proper impartial RICS valuation.

MobileSaver

Diocletian_II wrote: »

The smart money disagrees with you.
www.telegraph.co.uk/business/2019/10/10/thanks-corbyn-brexit-britains-army-super-rich-renters-going/

"so-called “super-prime” tenancies, where renters pay £5,000 a week or more. "

Ha ha, well that article is definitely not talking about renters like you and Crashy Time is it? :rotfl:

Mutton_Geoff

MobileSaver wrote: »

Everything in life is relative; £10k extra for most cars is significant, £10k extra for a house is relatively trivial

I don't agree. It's easy to say that £10k is a small percentage of a house price then it's OK. And people will say "oh, it's only 3 or 4 months salary" but as I've said before, think carefully how long it would actually take you to earn ten thousand quid and put it on the kitchen table.


The effort you put in to earning that is what you are effectively going to have to do if you want to exceed professional advice on the value of the item you are about to buy. Use this information to your advantage and spend a few hours negotiating the price with the vendor. It will be the easiest £10k you will have earned (£12,800 before tax for basic rate tax payers or £17,240 for high rate earners).


I bet the same people that blow £10k scrimp on a survey by going for the cheapest option and forgo specialist electrical, structural, damp etc surveys because it may cost them an extra few hundred quid.


If anyone is in doubt, go and withdraw £10k from the bank in £20 notes and hold it for 10 mins then pay it back in. Then imagine just throwing it at a stranger instead. Go back in and negotiate, you have done your due diligence in getting a professional valuation, now start speaking like the money is your hard earned, not "just £10k in the big scheme of things".


Here's what real money looks like in case you need reminding:

wesleyad

Leard91 wrote: »

We're kind of in a rush to move since we're being kicked out of our flat on December 7th. We both love the house, as much as the last house we were in the process of buying which we were willing to pay £273k for.

On a slightly different note, I dont think anyone addressed this, what do you mean by kicked out on the 7th Dec?

Have you been served noticed that expires on the 7th? If so that's not the same as being kicked out. If you found yourself with no home at that point you can stay and the LL would have to go to court and then get bailiffs. This process takes 6-8 months. Also has the notice been served correctly (check here: https://markprichard.co.uk/content/documents/180408-Section-21-checker-tool.pdf).

I know you don't want this to happen as it's more stress on top of the house buying, but it does give some leeway.

System

Again, I am doing what the smart money is doing, not what the dumb money on MSE is advising:

Thanks to Jeremy Corbyn and Brexit, Britain's army of super-rich renters is going to get bigger
The Daily Telegraph 10th Oct 2019

https://www.telegraph.co.uk/business/2019/10/10/thanks-corbyn-brexit-britains-army-super-rich-renters-going/

System

Mutton_Geoff wrote: »

I don't agree. It's easy to say that £10k is a small percentage of a house price then it's OK. And people will say "oh, it's only 3 or 4 months salary" but as I've said before, think carefully how long it would actually take you to earn ten thousand quid and put it on the kitchen table.


The effort you put in to earning that is what you are effectively going to have to do if you want to exceed professional advice on the value of the item you are about to buy. Use this information to your advantage and spend a few hours negotiating the price with the vendor. It will be the easiest £10k you will have earned (£12,800 before tax for basic rate tax payers or £17,240 for high rate earners).


I bet the same people that blow £10k scrimp on a survey by going for the cheapest option and forgo specialist electrical, structural, damp etc surveys because it may cost then an extra few hundred quid.


If anyone is in doubt, go and withdraw £10k from the bank in £20 notes and hold it for 10 mins then pay it back in. Then imagine just throwing it at a stranger instead. Go back in an negotiate, you have done your due diligence in getting a professional valuation, now start speaking like the money is your hard earned, not "just £10k in the big scheme of things".


Here's what real money looks like in case you need reminding:

It's not just how long it takes to earn £10,000, it's how long it takes to save up £10,000. Say an average person has superfluous income (after all expenditure) of £400-£500 a month, they would need to work for 2 years to save up that £10,000 again. If they blow an unnecessary £10,000k in a few minutes by half-hearted negotiations, they then pay for it by working an extra 2 years in a job they may hate.

Mutton_Geoff

Diocletian_II wrote: »

It's not just how long it takes to earn £10,000, it's how long it takes to save up £10,000. Say an average person has superfluous income (after all expenditure) of £400-£500 a month, they would need to work for 2 years to save up that £10,000 again. If they blow an unnecessary £10,000k in a few minutes by half-hearted negotiations, they then pay for it by working an extra 2 years in a job they may hate.

That is true, it's £10,000 out of your surplus disposable income, not net salary.

Crashy_Time

stayathomeandsave wrote: »

Quite! You missed my point Crashy, I was showing that a 'valuation' can vary depending on a number of factors and asking on a forum such as this for advice about the value of a property often goes round in circles. My house isn't 'worth' a cracker unless someone else thinks it is.

It will always be worth more than a "cracker", but assuming 550k just because you have spent money on it isn`t sensible in my view, it could fetch more, but in the choppy economic waters ahead it could also fetch a lot less when you come to sell.

MobileSaver

Mutton_Geoff wrote: »

Use this information to your advantage and spend a few hours negotiating the price with the vendor. It will be the easiest £10k you will have earned

No-one is suggesting the OP does not try to negotiate, that goes without saying. This issue is that they already have negotiated, the sellers have compromised and as far we know put a red line in the sand.

So now what does the OP do? Does the OP follow the Crashy/Diocletian "cunning plan" and keep renting for years or do they buy this house that they've fallen in love with and is already below their budget anyway?

Mutton_Geoff wrote: »

exceed professional advice on the value of the item you are about to buy.

They've not had any professional advice on the valuation. The lower valuation is by the lender's valuer whose only responsibility and concern is to the lender.