HSBC valuation lower!

lmftb_2020

Vestraun said:

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?

Both sold and for sale. It seems HSBC are returning a fair few valuations lower atm. 

Thrugelmir

lmftb_2020 said:

Vestraun said:

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?

Both sold and for sale. It seems HSBC are returning a fair few valuations lower atm. 

Given the current economic climate banks will be extremely prudent when lending money. It is they that are carrying the risk not the borrower of the funds. The full brunt of unemployment, reduced incomes, payment holidays ending has yet to be felt. 

lmftb_2020

Thrugelmir said:

lmftb_2020 said:

Vestraun said:

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?

Both sold and for sale. It seems HSBC are returning a fair few valuations lower atm. 

Given the current economic climate banks will be extremely prudent when lending money. It is they that are carrying the risk not the borrower of the funds. The full brunt of unemployment, reduced incomes, payment holidays ending has yet to be felt. 

Would all bank valuations be valuing the property at a similar price? Or if the seller put the house back on the market are they likely to get the price they are looking through from another lender? 

Thrugelmir

lmftb_2020 said:

Thrugelmir said:

lmftb_2020 said:

Vestraun said:

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?

Both sold and for sale. It seems HSBC are returning a fair few valuations lower atm. 

Given the current economic climate banks will be extremely prudent when lending money. It is they that are carrying the risk not the borrower of the funds. The full brunt of unemployment, reduced incomes, payment holidays ending has yet to be felt. 

Would all bank valuations be valuing the property at a similar price? Or if the seller put the house back on the market are they likely to get the price they are looking through from another lender? 

If it's the same surveyor tasked with the valuation then definately yes. Unless the local market has moved again in the intervening period. 

John108

We had a mortgage offer pending valuation - valuation has come back today 20k less than the offer that was accepted.

The house was bought as a renovation project by the previous owner and once the work was complete it was valued at 325k (175k profit minus building/renovation costs), that was 18months ago. The house remained on the market for around a year and as they had no luck selling, they dropped the price to 275k and we got the seller to accept 270k (still 120k profit minus building/renovation costs).

Valuation has come back today at 250k. Our mortgage offer on the agreed price of 270k was for 243k (90% LTV) they will now only lend us 90% LTV of 250k (225k). 

Where do we go from here? Do I push the seller to reduce by 20k? We love the house, the location is great for us and the house needs no work. We really don't want to lose out...

HCIMbtw

If you can't find the money to make up the difference then apply for a mortgage through a different lender and see if they come back with a satisfactory valuation

Thrugelmir

John108 said:

Where do we go from here? Do I push the seller to reduce by 20k? We love the house, the location is great for us and the house needs no work. We really don't want to lose out...

Revise your offer to the valuation. Next move is then the vendors. Appears optimistically overpriced. Which why it hasn't sold previously. Nor will the current economic conditions. 

tk02

We have just been in the same situation our valuation was £9k under the accepted price. Luckily for us they have decided to accept it and now we are back to waiting 😩

FTB_1991

Same with me today - £15k under. The whole thing feels ridiculous, it’s like they don’t actually want to give out 90% LTVs so are making buyers meet somewhere in the middle. Very upset that everything may fall through now. 

lmftb_2020

We applied for an 80% ltv. When the valuation came back £35k less we refused to increase to a higher ltv % when putting a large deposit down. The vendor refused to budge and the sale fell through! We’ve since had an offer accepted on another property with the valuation booked for Thursday, praying it doesn’t happen again!! 😰