How many people will re-negotiate the price after valuation?

Crashy_Time

zv13424 said:

I can only speak from my personal experience but we renegotiated after valuation.
Initially listed as OIEO £180k, offer of £185k accepted (and we would have been happy to pay this) but valuation at £175k. 

Offered £178k and vendor accepted. 

Smart vendor.

Angela_D_3

I can only speak from my circumstances but the offer we accepted was the lowest I can take.  If it comes back down valued honestly the house will be pulled off the market because there simply isn't a penny of room for manuvor.  So if they want it they pay and if they don't the house won't be sold.   That simple

917700

Angela_D_3 said:

I can only speak from my circumstances but the offer we accepted was the lowest I can take.  If it comes back down valued honestly the house will be pulled off the market because there simply isn't a penny of room for manuvor.  So if they want it they pay and if they don't the house won't be sold.   That simple

This make sense, some vendor probably spent a lot money on home improvement after they bought the property. 

zv13424

Crashy_Time said:

zv13424 said:

I can only speak from my personal experience but we renegotiated after valuation.
Initially listed as OIEO £180k, offer of £185k accepted (and we would have been happy to pay this) but valuation at £175k. 

Offered £178k and vendor accepted. 

Smart vendor.

Yes they got slightly above valuation, but less than they wanted.
I offered just above valuation but I desperately wanted to secure the house and I see it as me saving £7k on what I originally offered. I would quite happily spend £20k more. 

It’s our dream forever home not an investment 

azouria

We had the same scenario - asking price £500k which we offered, valuation came back at £465k. We changed our offer to 465k, and ended up meeting in the middle at 480k. The EA tried to play hardball and say that the seller would only accept the offer price or near when we first changed our offer, but ultimately it's down to how much the vendor wants to sell, as the next buyer would likely be in the same position. We decided meeting in the middle was worth it as we are buying in a fast moving market so the competition is ridiculous, but I suppose it depends on what your circumstances are and best to be ready to walk away if the seller won't budge. 

Crashy_Time

azouria said:

We had the same scenario - asking price £500k which we offered, valuation came back at £465k. We changed our offer to 465k, and ended up meeting in the middle at 480k. The EA tried to play hardball and say that the seller would only accept the offer price or near when we first changed our offer, but ultimately it's down to how much the vendor wants to sell, as the next buyer would likely be in the same position. We decided meeting in the middle was worth it as we are buying in a fast moving market so the competition is ridiculous, but I suppose it depends on what your circumstances are and best to be ready to walk away if the seller won't budge. 

Bet the seller was relieved.

HCIMbtw

Offer a price you are genuinely commited to paying. If you intend to renegotiate once it has been accepted that can have implications for the whole chain as people plan their next purchases and delay everybody. 

Significant undervaluations by lenders are rare, maybe more common at present than normal.. and in such an eventuality are going to need to be discussed further as it may simply make things not proceedable. You cannot plan for them though. I'd personally request a buyer to reapply through a different lender if it meant £20k difference in my sales price for example. I'f they weren't willing I'd walk away and find somebody else. Not because I'm greedy, but because I genuinely believe I've sold for a fair price (had offers for more), the price is relative to other properties in the area, and not moving isn't the end of the world.. id like to, but would be willing to wait. 

My buyers have seemed very pragmatic so far, will be interested to see how they react when the property survey picks up a little bit of damp in the cellar (it is quite obvious it is there like it is in lots of old cellars) and that part of the fuse box is a bit old (has been totally fine for the past 20 years).. 

I personally pick up on most this stuff when I view houses that are >100 years old or expect their to be some legacy bits which do not quite meet with exacting new purchase standards.. and I genuinely wouldn't try negotiate over it, unless it is something major and unforeseeable. I wouldn't expect the same with a new build though. 

No idea how other peoples attitudes to all this are though.. 

dani17

Offer just what you think the house does worth. a lot of surveyor will agree the accepted price if it is not "too far" from the market. so you may offer 10% more and the surveyor will still approve it.

lesalanos

917700 said:

lesalanos said:

917700 said:

MaryNB said:

While the valuation can have an significant impact but I wouldn't say it plays a more important role than the asking price. 

It may impact on your mortgage offer but it doesn't necessarily change what the vendor will accept. The asking price isn't meaningless if it's the minimum price the vendor will accept. A down-valuation gives you some grounds to renegotiate but the vendor can just refuse to lower the price and that's it.  If they know the down-valuation could jeopardise your mortgage offer, they may consider lowering the price. If they think you can still afford it regardless they could refuse, in the hope that you'll stick to your original offer because you fear you may lose the property. Or in the hope they'll get another buyer who will offer asking. You could always point out that if the vendor refuses to renegotiate and finds another buyer, the other buyer could end up with a lender that also down-values it.

Down-valuations seem to be more frequent when the lenders are nervous due to economic uncertainty - like they are now.

I completely agree with what you said. I am happy to pay what the property actually worth. I am not bothered about a few thousands difference. But I found it’s common now, the difference can be 5% - 10%. I remember a thread shared their recent experience, the agreed price was 470k, and the valuation is 35k lower. 

I feels this is kind of wasting of buyer, vendor and EA’s time. We spend time on negotiating an agreed price, and possibly we will enter a bidding war when there are multiple offers. 

Found it's common?  
How have you researched this?

I should say more likely, not common. I
am new to the forum and I am not familiar with searching old threads. I read the tread on MSE House buying & selling and Mortgage category everyday. And I did see more threads
and posts are sharing their down valuation experience than before.

There are a handful of threads with lower valuation. The hundreds of people with matching valuations don't share their experiences.

I would say it's the exception rather than more likely 

tweeto

dani17 said:

Offer just what you think the house does worth. a lot of surveyor will agree the accepted price if it is not "too far" from the market. so you may offer 10% more and the surveyor will still approve it.

Do the surveyors that the bank instruct to carry out the valuation know what you have offered beforehand?