Valuation come back lower HSBC

jurgen19

Hi, we had an offer accepted on a property and had our mortgage application agreed subject to valuation. HSBC have come back to me today with a valuation £10000 lower than our offer. I’m absolutely gutted as I cannot see the vendor dropping the price by £10000 as we already got it £5000 lower than the asking price. Has anyone had the same experience? Is there anything we can do to change the decision?

Thrugelmir

Either renegotiate the price or makeup the shortfall. 

RelievedSheff

You either need to get the vendor to accept a lower offer or add the extra funds yourself or a combination of the two.

jurgen19

I’ve cRelievedSheff said:

You either need to get the vendor to accept a lower offer or add the extra funds yourself or a combination of the two.

I’ve contacted the estate agent and relayed the information HSBC gave me and they are going to contact the vendor and explain the situation. The estate agent is in agreement with HSBC that it’s going to be very difficult for the vendor to achieve the price he wants as any other mortgage lender would more than likely come back with the same valuation.

jurgen19

RelievedSheff said:

You either need to get the vendor to accept a lower offer or add the extra funds yourself or a combination of the two.

Adding another £10000 really isn’t an option for us at the moment. We are FTB and have been saving really hard to get where we are now in terms of our deposit. Hopefully the vendor accepts the valuation and we can get it even cheaper 

dunstonh

Remember that the estate agent works for the vendor. Not you.   So, dont give them any impression you can afford to pay the difference and make them think you will pull out if the purchase price is not reduced.
Estate agents generally value around 10-15% higher than the price they expect to accept.   So, how does your offer compare with the asking price?

jurgen19

dunstonh said:

Remember that the estate agent works for the vendor. Not you.   So, dont give them any impression you can afford to pay the difference and make them think you will pull out if the purchase price is not reduced.
Estate agents generally value around 10-15% higher than the price they expect to accept.   So, how does your offer compare with the asking price?

Great advice thank you! That’s exactly what I did, I told the estate agent that my hands were tied in regards to the price and I wasn’t prepared to pay over the odds for a property that was valued £10000 lower and I need to know ASAP so I can start a new property search. She said that the vendor was thinking and she reckons he is going to accept the valuation so fingers crossed 

Thrugelmir

Your vendor maybe renegotiating the price of their onward purchase. 

jurgen19

Thrugelmir said:

Your vendor maybe renegotiating the price of their onward purchase. 

There is no onward purchase. They own another property and want to use the money from the sale of this to fund an extension 

Process90

I can also join this club.

Our valuation has come up £30k short of asking price from HSBC today and HSBC want us to amend LTV accordingly. I nearly fell over when my broker told me. Personally, I think this drop reflects a 10% drop in house prices.

Waiting for EA to get back to us as we've asked if the vendor is willing to meet in the middle. Probably, not... but we're certainly not going to pay what we originally offered now.

chillicheesedog

Oh no! Hope you get a new price agreed with the seller. Seemingly lots of downvaluation going on at the moment 😕