Valuation Issues

Tightaz

Hi team,

We have run into a valuation issue and would appreciate a few opinions on how to proceed.

So the bottom line is the banks valuation has come back close to 10% under what we have offered (>£25k) We really like the house, but don’t want to cause ourselves any financial stress, particularly if we need to sell in the future.

Side note: Just Googled the company who carried out the valuation and there is HUGE amount of 1 star reviews. Looks like they work for many of the banks.

Slithery

Either stump up the extra cash yourself, try a different lender, or find a different property to purchase.

Those are your only 3 options.

davidmcn

Slithery wrote: »

Either stump up the extra cash yourself, try a different lender, or find a different property to purchase.

Those are your only 3 options.

"Lower the offer" is another one, surely?

G_M

As slithery says. But to add.... how long do you plan to live there? If this is a long term family home, then future sale price/issues really don't figure.


If you plan to move again in 12 months, then purchase/sale price is more of an issue.

Slithery

davidmcn wrote: »

"Lower the offer" is another one, surely?

Oops - meant to suggest that but it didn't make it into my post somehow...

Tightaz

I’m happy to lower the offer but I’m not sure if the vendor will entertain that idea. How do I sell it to them? There were other interested parties at the viewing.

I guess another question is what % over the bank valuation is not an absurd amount?

diggingdude

Tightaz wrote: »

I’m happy to lower the offer but I’m not sure if the vendor will entertain that idea. How do I sell it to them? There were other interested parties at the viewing.

I guess another question is what % over the bank valuation is not an absurd amount?

Hello property owner, a professional property valuer only thinks your property is worth this. So that is what I am prepared to pay. Yours, Wannabe buyer

Just a suggestion

Mutton_Geoff

Search this forum for “undervalued”. You may find some correlation with “overpriced”.

eidand

The only option for me would be to lower the offer.

What a vendor dreams about is irrelevant. Anyone else who will come to buy that house will more than likely encounter the same issue.

I'd show them the valuation, change my offer accordingly and if they refuse, move on.

Tightaz

Thanks for the advice guys.

It’s just frustrating because we were unsure what to offer and the general advice is “offer what you think it’s worth to you” which we have done and now it looks like we have over shot the mark. I’m 100% certain if I go back to the vendor with an offer at or close to the valuation they will put it back on the market instantly.

Such a shame really. I do feel that the valuation is a bit unfair to be honest.

Mutton_Geoff

Tightaz wrote: »

Thanks for the advice guys.

It’s just frustrating because we were unsure what to offer and the general advice is “offer what you think it’s worth to you” which we have done and now it looks like we have over shot the mark. I’m 100% certain if I go back to the vendor with an offer at or close to the valuation they will put it back on the market instantly.

Such a shame really. I do feel that the valuation is a bit unfair to be honest.

Valuers will usually have a professional qualification unlike estate agents. They are usually the first people in the selling/buying process that are able to put the brakes on inflating selling prices and some valuations can be extremely cautious. It is up to you whether and by how much you exceed the professional advice you have been given.


Bear in mind all % LTV from the bank will now be based on that valuation, not your application form.