Bank just undervalued house!! Help!

Da92

Ah that's interesting @AdrianC - is it risky to buy a property at 439k if it has only been valued at 410k though? I love the house but don't want to shoot myself in the foot when it comes to selling- what would you do in this situation?

And re post no 7 - that sounds good, but do you think a different mortgage provider would really value the house 29k differently to a bank?

And surely if the bank has valued it so low, the sellers are going to have a hard time finding anyone to buy it pay above 410k anyway?

AdrianC

Da92 wrote: »

Ah that's interesting @AdrianC - is it risky to buy a property at 439k if it has only been valued at 410k though?

It's the same house for the same price.
It's just that some random surveyor doesn't like it as much as you do.

You're going to be doing work to it and living there for years, right?

And surely if the bank has valued it so low, the sellers are going to have a hard time finding anyone to buy it pay above 410k anyway?

We're talking about a 6-7% difference in valuation...

That's all.

Da92

Thank you all so much!
I think what i'll do is this:
1) Email the solicitors to inform them and send the valuation report (did this already in a panic haha)
2) Contact the estate agent- see what they say, and see if we can re-negotiate the cost
3) If there is no re-negotiation we can go to a broker we had as a back up (although do the same banks use the same valuation methods- as we have gone with Halifax and our broker suggested halifax too ?!)
4) Possibly pay the difference if its not as big as 29k

I never thought this would ever be an issue and especially not at this stage! I know the sellers are keen to sell but not sure how happy they will be with all this!

Jonbvn

Da92 wrote: »

Thank you all so much!
I know the sellers are keen to sell but not sure how happy they will be with all this!

I doesn't really matter how unhappy they are with the situation. This is just a business transaction and you have to view it as such.

theartfullodger

They haven't undervalued, you've overvalued.

Thrugelmir

Da92 wrote: »

We are so far through this process and have already spent so much money on surverys, solicitors, and now the valuation, plus we really want this house so just want to see if we have any other options?

Why are you so far into the process without a formal mortgage offer?

Have you spoken to the surveyor to obtain their feedback?

m0bov

Speak with your broker, try for another mortgage with a lender who uses another valuer. Check the valuation paperwork that they have correctly identified the property and the description is accurate.
Otherwise the vender will have to face facts the property is overpriced and another else will have the same issue.
It would be unwise to top up the loan as you will be in negative equity for far longer. Bad investment choice.

csgohan4

Thrugelmir wrote: »

Why are you so far into the process without a formal mortgage offer?

Have you spoken to the surveyor to obtain their feedback?

Lesson for those future FTB, don't start anything until you have a mortgage offer, and/or survey, you never know you may find something negative

m0bov

As above, the mortgage offer is poss the second or third step, way before searches are done.

lindens

Jonbvn wrote: »

I doesn't really matter how unhappy they are with the situation. This is just a business transaction and you have to view it as such.

And don't forget - should you decide to walk away and they find another buyer - the same thing may happen to them too!