HSBC valuation lower!

lmftb_2020

I currently have a mortgage application in with HSBC.
The house was on at offers over £300k. The seller had her sights set on somewhere between £315-350k. Eventually she agreed to £300k.
After 5 weeks of waiting we heard today our valuation from HSBC valued the property at £265k!!
Myself and my partner are gobsmacked it returned so much lower. 

We don’t see the seller agreeing to go any lower, but are now concerned we are paying too much.

Anyone have advice? Experienced a similar situation?

Windofchange

Well I guess unless you can find another £35k of your own money you are going to have to ask them to go lower? Can't imagine another valuation will return anything significantly different, so probably no point going down that route. Might be worth pointing out to the seller that the valuation has come back as that, and they will presumably have the same problem with every other potential buyer when they too get a valuation done - assuming of course they won't drop their price. 

adrian84

lmftb_2020 said:

I currently have a mortgage application in with HSBC.
The house was on at offers over £300k. The seller had her sights set on somewhere between £315-350k. Eventually she agreed to £300k.
After 5 weeks of waiting we heard today our valuation from HSBC valued the property at £265k!!
Myself and my partner are gobsmacked it returned so much lower. 

We don’t see the seller agreeing to go any lower, but are now concerned we are paying too much.

Anyone have advice? Experienced a similar situation?

When you put the offer on the house did you checked zoopla rightmove to see thr history of thr house and what values  have the houses in the area and also this one?

dunstonh

Offers over is a marketing method I do not like.  The house we bought was on the market for 2 years as "offers over..."  and we bought it for almost three-quarters of their starting price.     Offers over doesn't mean its worth more than that amount.  it is just a way to fool some people into thinking that it is the minimum price.   It is believed that the offers over method does see people putting in higher offers than had the conventional method been used.

The values the valuer uses will not be influenced by that.

lmftb_2020

adrian84 said:

lmftb_2020 said:

I currently have a mortgage application in with HSBC.
The house was on at offers over £300k. The seller had her sights set on somewhere between £315-350k. Eventually she agreed to £300k.
After 5 weeks of waiting we heard today our valuation from HSBC valued the property at £265k!!
Myself and my partner are gobsmacked it returned so much lower. 

We don’t see the seller agreeing to go any lower, but are now concerned we are paying too much.

Anyone have advice? Experienced a similar situation?

When you put the offer on the house did you checked zoopla rightmove to see thr history of thr house and what values  have the houses in the area and also this one?

The house hasn’t been lived in before and nor have there been any sold similar in the area. Our broker said we could appeal the decision on the valuation, but it was highly unlikely to change due to the above reasons.

lmftb_2020

dunstonh said:

Offers over is a marketing method I do not like.  The house we bought was on the market for 2 years as "offers over..."  and we bought it for almost three-quarters of their starting price.     Offers over doesn't mean its worth more than that amount.  it is just a way to fool some people into thinking that it is the minimum price.   It is believed that the offers over method does see people putting in higher offers than had the conventional method been used.

The values the valuer uses will not be influenced by that.

Agree it is a marketing tool, which we didn’t fool for. We personally decided what we felt it was worth, along with the limit we would go to. Having looked at properties with similar in the area we were surprised it was valued so much lower.

jurgen19

We had exactly the same problem today and also with HSBC. Ours came back £10000 short of our offer. I am waiting on the vendor to make a decision now but I don’t really hold much hope as they have already come down on the price, but HSBC said to me if the vendor puts the property back on the market and even if another buyer use a different lender the valuation will more than likely come back around the same.

Thrugelmir

lmftb_2020 said:

Myself and my partner are gobsmacked it returned so much lower. 

What did you base your offer on. Other than the guide asking price. 

lmftb_2020

jurgen19 said:

We had exactly the same problem today and also with HSBC. Ours came back £10000 short of our offer. I am waiting on the vendor to make a decision now but I don’t really hold much hope as they have already come down on the price, but HSBC said to me if the vendor puts the property back on the market and even if another buyer use a different lender the valuation will more than likely come back around the same.

Exactly the same as we were told. 

We are also waiting on the vendors decision, but hold very little hope of them budging. 

We certainly don’t feel we should give the offer agreed with such a big shortfall. 

As if the wait for the mortgage wasn’t bad enough😂

lmftb_2020

Thrugelmir said:

lmftb_2020 said:

Myself and my partner are gobsmacked it returned so much lower. 

What did you base your offer on. Other than the guide asking price. 

Prices of similar houses in the area we had been looking at.  

Vestraun

lmftb_2020 said:

Thrugelmir said:

lmftb_2020 said:

Myself and my partner are gobsmacked it returned so much lower. 

What did you base your offer on. Other than the guide asking price. 

Prices of similar houses in the area we had been looking at.  

Asking prices or actual sold prices?