Barrett home undervalued

GCal

New build Barrett home on the market for 202k, but the valuation from our lender us come back at 185k so 17k under asking.

On the same development I can’t see any houses of the same type going for the higher price.. they are all in the lower bracket.

It’s been a long process to get to here..
Is there anyway we could negotiate the selling price? Or are we going to have to go with another lender who will hopefully revalue at the higher price? 

hazyjo

You want to overpay? 🤔

Try to negotiate the price down if you don't have the cash spare.

What do 'second hand' properties go for?

Thrugelmir

What incentives have you been offered? 

diggingdude

why would you want to overpay?

Scotbot

Why do you think another lender will value it higher? Send a copy of  the valuation to the seller and tell them you need a better price.

Vestraun

Is this new from Barratt or a resale?

SpiderLegs

GCal said:

...Or are we going to have to go with another lender who will hopefully revalue at the higher price? 

Just read that bit back to yourself OP.

What you are effectively saying is you want to walk into a bank and ask them for a 17k loan over 25-ish years. Then when they give you that money you want withdraw it in nice crisp £50 notes and have a massive bonfire.

Sounds ridiculous doesn’t it.

AnotherJoe

GCal said:

New build Barrett home on the market for 202k, but the valuation from our lender us come back at 185k so 17k under asking.
On the same development I can’t see any houses of the same type going for the higher price.. they are all in the lower bracket.
It’s been a long process to get to here..
Is there anyway we could negotiate the selling price? Or are we going to have to go with another lender who will hopefully revalue at the higher price? 

Seems you've become fixated on the house and missed the bigger picture, whats its costing you.

Why would you want to pay more than someone who values houses for a living thinks its worth? AND when there are no other houses selling for that much.

When in say 5 years time you sell and that £17k "undervaluation" (aka drop in valuation) in included in the price you can get for it, plus the drop in price from a new house to an old one,  so you are now down serious money unless prices have gone up, and even then you are still down on where you would have been.

Go back to Barrats, show them the valuation and tell them you need £17k off otherwise you wont buy.

And dont if they wont. There will be plenty more new houses available soon at lower prices.

RelievedSheff

GCal said:

New build Barrett home on the market for 202k, but the valuation from our lender us come back at 185k so 17k under asking.

On the same development I can’t see any houses of the same type going for the higher price.. they are all in the lower bracket.

It’s been a long process to get to here..
Is there anyway we could negotiate the selling price? Or are we going to have to go with another lender who will hopefully revalue at the higher price? 

It is really unusual for new build properties to have a down valuation which does suggest that this property is very over priced for the area.

Go back to the developer with the valuation report and reduce your offer. If they say no then walk away and find another property.

AdrianC

Of course you can try and renegotiate.

Are you prepared to walk away if they won't?

What else would that money buy you in the area?