Valuation warning!

anon88

Hi all! Just to let you know - this may not be the situation for everyone! But the mortgage valuation for our property came in £8k below the accepted price. Our mortgage valuation for the house we are looking to buy came in £15k below the accepted price. I think that the estate agents enthusiasm at a bustling market is being met with lenders trepidation and extra care considering current factors! Like I said, won’t be everyone. But two different lenders and two different down valuations. Seems unlikely to be a coincidence. 😊

Jazmin28

Thats a shame.. what is the house like? did they tell you why it was valued less than what was sold for? 

anon88

Jazmin28 said:

Thats a shame.. what is the house like? did they tell you why it was valued less than what was sold for? 

Honestly - just stating the current climate. The estate agents said they think they are being super careful and this is one way of covering their backs. Which I understand. 

Thrugelmir

Markets can move rapidly. The valuations will be based on recent sales in the locality. While it's a sizable amount of money,  in % terms it's very little. 

Vestraun

Sounds like good news for you, the one your buying now cheaper by £15k but you only have to give an £8k discount to your buyer. Where’s the problem here?

blue_max_3

Vestraun said:

Sounds like good news for you, the one your buying now cheaper by £15k but you only have to give an £8k discount to your buyer. Where’s the problem here?

That doesn't necessarily mean that's the selling price. A low valuation may mean the buyer can't afford the mortgage.

Dandytf

Already been through Nationwide's seriously lowered re valuation during 2012.
Complained, got nowhere.
Started to witness modest recovery though no where near purchase price of 65k which Nationwide agreed to lend from 2009.
Then Global downturn strikes, then CV19, No idea where my current valuation could be, other than Nationwide's suggested 54942 during one of a few re Mortgage switches online.
Enjoying positives though,whilst experiencing record low Mortgage rates of 1.34% until early 2021.
Good luck OP -not such a Horror story as you think.

Sandtree

Vestraun said:

Sounds like good news for you, the one your buying now cheaper by £15k but you only have to give an £8k discount to your buyer. Where’s the problem here?

A rather simplistic view... there is no assurances that the vendor will accept anything less than what has already been agreed. A lower valuation means the buyers LTV is now higher and so potentially higher interest rates making their current offer untenable with their current lender so either additional fees to take a punt with another lender, reduce the offer or withdraw the offer.

It could be that both agree the price reductions and so the OP is £7k in the money but I certainly wouldn't be betting on that being the outcome.