New build undervalued by 17%??

jackieblack

getmore4less said:

Always best to think overpriced rather than undervalue

That makes 17% right.

Indeed, approx 14.5% undervalued = 17% overpriced 😄

jamielutz1987

@Cal90 I'm a bit confused when you say you expect Persimmon to mount a challenge? AFAIK, it's the applicant for the mortgage who needs to make an appeal. 

Cal90

This is exactly what I thought! 

I questioned my broker once he informed me of the down valuation, I asked if it was worth challenging or whether I should move on and ask for any money back i’ve already spent with them (reservation fee and finishing touches) 
He then informed me that it was the builders option to challenge it within 7 days. 

So I guess by Monday time I will see what they have to say. 

Semple

If the plots not due to be finished until December, they might ask you to put your mortgage application on hold and to then do another valuation in a few months time. 

The actual housing market doesn't appear to have had this plummet that some were predicting. So prices may well recover a little. 

ACG

I have never had an appeal on price overturned - I used to put war and peace together, now I dont bother. 
However, Persimmon are much bigger and might hold some flack brokers do not. You may find Persimmon ask you to try a different lender in order to get a different surveyor before they consider a lower price. 
 
The problem you have is if there are 50 unsold properties on the development, that is £34k x 50 which is £1.7m, so they are going to be reluctant to accept that sort of drop as it sets a precedent so to speak. If it is the last property or 2 then they might be more inclined to accept it. 

getmore4less

I checked local(1/2m) to me and there were a couple sold the beginning of the year and completed just before the fan hit.
Those that went on Feb/March and got stalled and some got a refresh with new details and others sat waiting, a few have now gone SSTC will be a while before we see the sold through prices but not seeing drops except on the ones that had  speculative pricing anyway.

Across all properties, for sale 68/45 SSTC  which is fairly good 
capture the full residential area(3m) 745/485
Not checked the new build and there are a lot of them.

I think the 3month stall has left a backlog of people that were looking to move that will keep the market demand/prices up for a bit.
How long this will last as they sort themselves out yet to be seen.

Keep Pushing  back  and have the mind set of overpriced , not undervalue as that is just fooling yourself. 

Cal90

Cheers all. 

I won’t go through another lender, if it’s overpriced I shouldn’t try to put myself in a position whereby I could lose out. 

I think if it’s still rejected and builder won’t budge then I will just leave it and look elsewhere.. It’s not as if South Birmingham has a shortage of houses for sale! 

Thanks again! 

blue_max_3

I hope you get your deposit back. Not sure you will on the 'finishing touches'.

Cal90

Unfortunately I think you may be right.. I checked the order forms and there is a statement about money being non-refundable if I do not complete the purchase of the property. 

Not sure how I can argue against that really.. That may well be an expensive lesson learnt. 

Although, ofcourse I will argue it because no one wants to lose £2000.   

getmore4less

What finishing touches?
Dec target competition have they even dig the footings yet?
Some builders are focusing on completing existing builds that have started and delaying new starts.