Downvaluation of property and how to deal with it?

E7residenttobe

We are in the process of buying our first home and we've had a mortgage valuation done with Nationwide. They came back with down valuation by reducing the price by 20,000 GBP. The seller is not willing to accept this price however has agreed that if we do a second valuation with another bank and the price comes back again below the agreed sale price he is willing to accept the lower sale price.

Any advice on how to deal with this? Should we be going and cancelling our existing mortgage application with Nationwide, or just simply look out to pay for a property valuation.

Very frustrating as first time buyers but would be super grateful to get an advice on this!

SpiderLegs

If you apply with a different lender just make sure they use the same surveyors.

AdrianC

Are YOU happy with the agreed price?

What is the LtV at the agreed price, and what is the LtV taking the valuation as the value?

If the lender are happy to lend the required amount against the lower valuation, then there's no issue - you can still borrow.

Vestraun

Have you seen the situation in the markets today? This will hit the housing market just as hard. Unless you’ve got a good discount I would run fast.  

Crashy_Time

Good advice IMO.

foxy-stoat

Walk away, you don't want to buy an overpriced house

E7residenttobe

SpiderLegs said:

If you apply with a different lender just make sure they use the same surveyors.

I don't actually know which surveyors Nationwide used - is it common for the bank to share this type of information?

SpiderLegs

E7residenttobe said:

SpiderLegs said:

If you apply with a different lender just make sure they use the same surveyors.

I don't actually know which surveyors Nationwide used - is it common for the bank to share this type of information?

I’d have thought one of the forum brokers would know this?

Failing that, ask nationwide, then ring the surveyor up and ask which other lenders use them?

Cakeguts

It isn't a down valuation it is a valuation of what the lender thinks it is worth. What has happened is that you have offered too much for it. Your offer is £20k too high and the house has been marketed by the owner at £20k too much. If they try to sell to someone else they will have the same problem.

kinger101

It depends how much you want the house and how much you can take the vendors at their word they'll agree to sell at that price if it comes in low again.

bob_the_dinosaur

have they actually been to the house?  its common for lenders to value the house by either driving past or using googlemaps