Bank Valuation

dani17

Hi,
We are FTB and we had our offer accepted just before the virus crisis started. Our mortgage application is now approved subject to valuation and we will need to wait until the end of the lockdown so the surveyors can view the house. We are concerned about all the reports talking about an imminent house prices drop in the coming months and  we are wondering if we need to renogociate the price. the question is : do you think it is better to renegociate the price now or wait until we get the bank valuation first?  thanks

Wkmg

Wait for the bank valuation. If they value under that puts you in a better negotiating position. At the moment there is no evidence that prices have dropped

Crashy_Time

Obviously you have to wait I think.

dani17

thank you. I am just wondering if the bank valuation will take into account what is happneing now or it will be only based on previous transactions. in the second case, i think it will be useless to wait for it because it will validate the agreed price and the seller will refuse to renegociate. i would prefer simply pull out and avoid paying the survey valuation in a such scenario. 

Thrugelmir

Very little is happening currently. Local markets can be impacted by many factors, not just national ones. You might as well pull and out and bide your time. 

greatcrested

dani17 said:

thank you. I am just wondering if the bank valuation will take into account what is happneing now or it will be only based on previous transactions. in the second case, i think it will be useless to wait for it because it will validate the agreed price and the seller will refuse to renegociate. i would prefer simply pull out and avoid paying the survey valuation in a such scenario. 

The valuation will be based on what the surveyor believes the property is currently worth. Naturally he will look at previous sales as one factor in his calculations, but he'll also consider both national and local trends.