When the buyer's lender values the house £15k less than the agreed offer...

martin2345uk

So we have agreed an offer on our house with a buyer, for £290k (asking price was £300k, but Corona and all that, plus I do think 300k was probably a bit optimistic to start with).
We are at the signing contracts stage, but the agent just phoned to say the buyer's lender has downvalued the house, apparently citing the pandemic. They have said it's worth £275k; and the buyers have said with savings they could stretch to £280k...

I'm just not sure what to do! Honestly this whole house business is so stressful. I don't understand why it has taken so long, their valuer person came round on June 29th, 22 days it's taken them to tell us this...

I guess it's either accept this new offer or start all over again..! :-(

Vestraun

And the risk if you start over is that this just happens again if they use the same valuer. 

SameOldRoundabout

A lot of lenders will use the same valuer. I’d negotiate with them. 

davidmcn

How convinced are you that there's evidence to support the £290k figure? 

AdrianC

martin2345uk said:

So we have agreed an offer on our house with a buyer, for £290k (asking price was £300k, but Corona and all that, plus I do think 300k was probably a bit optimistic to start with).
We are at the signing contracts stage, but the agent just phoned to say the buyer's lender has downvalued the house, apparently citing the pandemic. They have said it's worth £275k; and the buyers have said with savings they could stretch to £280k...

I'm just not sure what to do! Honestly this whole house business is so stressful. I don't understand why it has taken so long, their valuer person came round on June 29th, 22 days it's taken them to tell us this...

Perhaps they've been spending the time trying to make the sums work?

I guess it's either accept this new offer or start all over again..! :-(

Yep, that's exactly your choice.

martin2345uk

davidmcn said:

How convinced are you that there's evidence to support the £290k figure? 

Well I guess you’d have to be pretty brazen to try this on without any evidence but the agent have requested the proof so will see. 

I guess on balance there’s not a lot of choice really :-/

Crashy_Time

Take the 280K, don`t delay.

blue_max_3

It's good the agents have asked for the proof. It shows you're not going to give it to them as a matter of course.
Given you thought that £300k was optimistic, I'd say it's close enough myself. Did you have many viewings/other offers?
They seem keen and willing to complete offering more than the valuation, so I'd probably go with it too.

grumiofoundation

Crashy_Time said:

Take the 280K, don`t delay.

May be the first time the consensus will be 100% with Crashy

eidand

In this situation, I would take the reduced offer. It's very unlikely anyone will want to pay over an evaluation.

blue_max_3

grumiofoundation said:

Crashy_Time said:

Take the 280K, don`t delay.

May be the first time the consensus will be 100% with Crashy

In that the EA is getting confirmation of the valuation, I don't think they are ripping their hands off. It's important to maintain confidence in the buyer. The valuation is the only reason to be considering this reduction at this stage. That is the factor that makes this decision clear.
Crashy_Time would take whatever they offer, for whatever reason