Bank just undervalued house!! Help!

Da92

We had the mortgage offer in principle as our first step- we only paid for the valuation to confirm the mortgage (that we assumed we pretty much had in the bag) after the survey which is how this has all happened.

Skiddaw1

I'd hazard a guess that the sellers will be prepared to negotiate down a bit (perhaps meet half way?) especially in view of the fact the house has been on the market for a while (and they had to drop the value to find a buyer).



Good luck OP- do let us know what happens.

Da92

Yes I am hoping we can agree to meet halfway-thank you so much- thanks everyone for all your advice- would definitely have done a few things a different way round if i had the chance, but thats the power of hindsight i guess!

Will let you know what happens- keep your fingers and toes crossed for me!

Thanks all

Skiddaw1

Ears and eyes crossed too....:)

robatwork

Gobsmacked Crashytime hasn't been on yet telling you that the house is in fact worth £150,000 and dropping by the day.

If you're feeling brave you can post the rightmove link or the postcode and you can get the considered and not-so-considered opinion of this forum regarding its actual value.

Mutton_Geoff

I've just remortgaged my house. The mortgage valuation was £200k less than two agents (with good comparables to show me) had valued the house at only a week earlier. Fortunately I have a very low LTV so it wasn't an issue but I get the impression valuers are very cautious these days.


Take a close look at actual sold prices in the immediate area over the last 12 months to check your own thoughts on the value of this house.

Crashy_Time

Da92 wrote: »

So we agreed on £439k (and had the mortgage in principle based on that), but it has been valued at £410k...
when you say make up the difference, do you mean paying the 29k in cash? That's something that would be quite difficult as we have set aside money to do up the property abit,
I am really shocked to be honest, lots of houses in the area are on the market for similar to what we offered, so we felt like we were getting an alright deal! The house was initially on offer for £500k - we never viewed it then, and clearly noone else did as that was way to high, but when they dropped it to £450k we viewed it and put our offer down and eventually both settled on £439l.

Hope that all makes sense!

So according the the main market maker (the bank) the seller was originally asking 90k more than he could possibly hope to get? Just shows how out of whack people`s expectations about the value of property has become....

lookstraightahead

theartfullodger wrote: »

They haven't undervalued, you've overvalued.

Exactly this.

lookstraightahead

robatwork wrote: »

Gobsmacked Crashytime hasn't been on yet telling you that the house is in fact worth £150,000 and dropping by the day.

If you're feeling brave you can post the rightmove link or the postcode and you can get the considered and not-so-considered opinion of this forum regarding its actual value.

To be fair that's what the banks are telling them (not to such an extent but the same principle).

getmore4less

Da92 wrote: »

So we agreed on £439k (and had the mortgage in principle based on that), but it has been valued at £410k...
when you say make up the difference, do you mean paying the 29k in cash? That's something that would be quite difficult as we have set aside money to do up the property abit,
I am really shocked to be honest, lots of houses in the area are on the market for similar to what we offered, so we felt like we were getting an alright deal! The house was initially on offer for £500k - we never viewed it then, and clearly noone else did as that was way to high, but when they dropped it to £450k we viewed it and put our offer down and eventually both settled on £439l.

Hope that all makes sense!

Using asking prices to judge the market is a FTB error.

You need to be researching the sold data and the SSTC data.