Bank just undervalued house!! Help!

Crashy_Time

shinytop wrote: »

I don't know what anyone else is thinking; I'm just illustrating, with my sample of one, that (1) sometimes reductions aren't because we are in the middle of a price crash and (2) house prices are still showing a healthy increase after the drop in 2006. Actually, I wouldn't mind a crash soon as I'll be buying early in the new year. I'm not holding my breath though.

Transactions are not doing so well, down a lot from peak transactions, and if there was ever a time when someone WOULD have paid 100 for your house then your achieved price would be considered a "slump" from that price point.

ToadsFriend

My own little house (ex-council semi in South Yorkshire, but with a lot of modernisation and new bathroom/kitchen etc.) was valued by 3 different EA...from £130k to £105k

We decided to try middle fee of £115k...accepted an offer of £110k...found a house we wanted an started buying...then *dramatic music* bank valuer came and valued it at £100k..our FTB said he would try another one (we didn't ask him to) and this one also valued at £100k...so we have had to accept that, in the current market (Bank did say it was due to market uncertainty and not that the house was only worth that)...we have said we will accept thr £100k although it'll cause us fainancial problems as we had bought another house banking on the extra £10k, but we don't want to let our new house get away as it's perfect. We'll just have to accept it and put it down to experience.
What do you guys think? At least our FTB has got a little bargain, and we haven't really LOST any money (or gained any either tbh!)

[Deleted User]

ToadsFriend wrote: »

What do you guys think?

If it works for you, that's all that matters.

shinytop

ToadsFriend wrote: »

What do you guys think?

Well one EA thought it was worth about £105k, maybe they were right. When I sold mine (see post above) I chose the highest of three but sold for slighly less than the middle one and a lot more than the lowest. It sounds like you can make the numbers work and have found your ideal home. Good luck!

getmore4less

Crashy_Time wrote: »

Transactions are not doing so well, down a lot from peak transactions, and if there was ever a time when someone WOULD have paid 100 for your house then your achieved price would be considered a "slump" from that price point.

You have to go back over 10years for that claim.

Historic residential transactions
Chart 5 : Although fluctuating, residential transactions have been relatively stable over the previous 10 years

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/847286/UK_Commentary_Nov_2019__cir_.pdf


of course next month it is all going to change.

Remind us again how many dips in the market you have missed waiting for the big crash

Boppy30

ToadsFriend wrote: »

There does seem to be a HUGE increase in banks 'downvaluing' and it is not always down to the property being over priced at all...with market uncertainty banks do not want to expose themselves by lending large amounts. I have had a LOT of discussions about this lately, trust me!! haha

Try anther bank/valuer as they could value differently, or as someone else suggested, make up the money yourself or see if you can meet in the middle with the seller, as others may face same issue.

BUT it doesn't necessarily mean the house is prices worng, just that the bank daren't lend such a big amount at the moment..Keep us updated please!!

The bank are still willing to lend the amount offered initially aren’t they? Just the poster will have to cough up more deposit (if they can’t get a reduction from the seller) and therefore the LTV will change?

Can’t see it becomes more riskier for the bank if the amount they lend stays the same?

ToadsFriend

I'm not sure if the bank will still lend, I don't know how it works but-in reality, very few people would want to pay OVER the valuation. My buyer didn't and I probably wouldn't either.

It's annoying as the surveyor apparently said it was a ''lovely'' house and well worth £110k+...but he has to value it based on current uncertain market and neighbouring properties (and next door but one house was sold from a dad to his daughter for 50% of the actual value...which has affected prices it seems) I'm trying very hard to not think of it as REAL money...I have no mortgage on mine so the £10k is REAL money...but still, I'm trying to be positive about it..

Boppy30

ToadsFriend wrote: »

I'm not sure if the bank will still lend, I don't know how it works but-in reality, very few people would want to pay OVER the valuation. My buyer didn't and I probably wouldn't either.

It's annoying as the surveyor apparently said it was a ''lovely'' house and well worth £110k+...but he has to value it based on current uncertain market and neighbouring properties (and next door but one house was sold from a dad to his daughter for 50% of the actual value...which has affected prices it seems) I'm trying very hard to not think of it as REAL money...I have no mortgage on mine so the £10k is REAL money...but still, I'm trying to be positive about it..

Hope it all works out for you, it must be really disheartening to have this happen at this stage.

Crashy_Time

getmore4less wrote: »

You have to go back over 10years for that claim.



https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/847286/UK_Commentary_Nov_2019__cir_.pdf


of course next month it is all going to change.

Remind us again how many dips in the market you have missed waiting for the big crash

And in those ten years there has been massive central bank intervention to prop up the debt and property bubble, resulting in half the transactions on even sillier prices, do you think that intervention will be harder or easier as we leave the EU? The main point though was when would someone have paid "100" for the house, that probably isn`t as far back as ten years IMO, Brexit and the woeful way it has been handled have made people think a lot more about the multiples they borrow for basic living space.

Crashy_Time

ToadsFriend wrote: »

I'm not sure if the bank will still lend, I don't know how it works but-in reality, very few people would want to pay OVER the valuation. My buyer didn't and I probably wouldn't either.

It's annoying as the surveyor apparently said it was a ''lovely'' house and well worth £110k+...but he has to value it based on current uncertain market and neighbouring properties (and next door but one house was sold from a dad to his daughter for 50% of the actual value...which has affected prices it seems) I'm trying very hard to not think of it as REAL money...I have no mortgage on mine so the £10k is REAL money...but still, I'm trying to be positive about it..

Apart from the dad to daughter one, how many houses have sold in the street recently?