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Survey Valuation Lower Than Offer

2

Comments

  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    Tell the agents to let them know of the valuation, then wait
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Good advice.
  • Not mentioning it at all would certainly be a mistake. 
  • hazyjo
    hazyjo Posts: 15,476 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Just to clarify, it isn't 'negative equity' (know you said 'so to speak' but it's not even loosely negative equity). That is where you owe more on it than it's worth. Wouldn't be the case here.
    2024 wins: *must start comping again!*
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    The case here would be "paying more than it`s worth", meaning that your deposit gets eaten first before you approach the Negative Equity threshold.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Remember the buyers might not be in a position to pluck an extra £2000 out of thin air! Our house was downvalued by £5k under our accepted offer, we were already stretching ourselves affordability wise as it was so finding another £5000 just wasn't possible
    If somebody is buying a £360k house with their affordability absolutely on the limit of maximum borrowable possible, then - yes - £2k may make a difference.

    But if they're looking at, say, a £300k mortgage then the difference between a £360k and £362.5k valuation is a difference in the LtV of 83.3% and 82.7%. Absolutely negligible. It is almost certainly purely an issue of perception.

    Like the OP said...
    Thanks everyone for your advice. I know you are all right but it just feels like I didn't get the bargain I thought I had. I love the house though so in the long run I suppose that's all that matters. 

  • cjohnson355
    cjohnson355 Posts: 61 Forumite
    Tenth Anniversary 10 Posts
    edited 12 February 2020 at 8:59AM
    chanz4 said:
    Tell the agents to let them know of the valuation, then wait
    Thanks for the advice. That’s exactly what I did and the vendor thankfully did drop the price. Bring on the completion date. 
  • lees80
    lees80 Posts: 160 Forumite
    100 Posts First Anniversary
    SMR710 said:
    If I was the vendor and I had already agreed 12k reduction and you came back quibbling over 2.5k (0.6% on a house worth 360k) then I'd tell you where to go to be quite honest! 
    Although it wouldn't be their fault the valuation came back as it did, or if they didn't have the £2.5k available to make up the shortfall - none us know a buyers personal circumstances. 
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    chanz4 said:
    Tell the agents to let them know of the valuation, then wait
    Thanks for the advice. That’s exactly what I did and the vendor thankfully did drop the price. Bring on the completion date. 
    Excellent!
  • Great outcome, congratulations!
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