“A house is only worth what someone will pay” “Why would you ever pay more than mortgage valuation”

LoveSauce

How can these two statements coexist? Always see them floating around in threads, and it’s always bugging me!

Comms69

Because they're clearly not mutually exclusive?

AdrianC

Lots of people wave lots of similarly vacuous platitudes about. They don't have to make sense...

The mortgage valuation is just one person's opinion of the value.
An accepted offer is the point at which two people's opinions cross.

SpiderLegs

LoveSauce said:

How can these two statements coexist? Always see them floating around in threads, and it’s always bugging me!

No I haven’t got a clue what you mean, in what way are the two contradictory?

grumiofoundation

LoveSauce said:

How can these two statements coexist? Always see them floating around in threads, and it’s always bugging me!

Are they inherently contradictory?

If a mortgage company says its worth 200k they are saying it is worth 200k to them (as security)  but if someone is willing to to pay 220k it is worth 220k - to them.

Carrot007

Because you really want the house or want to move?

My last move for example.

On ad offers over 180.

Offer 180000.01 with the additional info of tell me what you are after. (offer over is BS) (it was a 180k offer really, showing pedantry is not going to impress!).

Want 182500, of offer that (does seem overpriced for area but hey ho, did want to get away from old place and seems ok).

Mortgage comes in at 170000 which is probably realistic.

Offer 175000 which is accepted. For the time it had been on the market there was no way they were taking the 170k, even at 175 they tried to get more by offering carpets and blinds for money. Refused all of that too. They left them. Did remove every shelf in the house and appeared to burn it in the fireplace which was not fully clean. But hey did not want them and I expect to clean new houses unless it was me selling them!

What else could I have done? Lost my buyer (at offering price which was generous!), had them refuse and probably even refuse in 6-8 months when they offer it at the right price becuase hey you know people and admitting they were wrong.

I guess it depends on how much you want to move and how fussy you are going to be about the right place. If you are very fussy them how often will a house you want come up. And it's usually neither here nor there a couple of years later. Remortgage in 4 years valued at 200k. (180k in the 2 year onne).

If you are not bothered about the place then why pay more. Hey maybe look at the collectables market or some other area things are priced crazy!

steampowered

Valuation is not an exact science. There is always going to be a range of reasonable opinion. You could get one mortgage valuation which reckons the value is £x and another which says the value of £y.

davidmcn

A house is only worth whatever price it achieves on a completed sale - which is likely to have taken into account whatever the surveyors' opinion of its value was.

MobileSaver

LoveSauce said:

How can these two statements coexist? Always see them floating around in threads, and it’s always bugging me!

A mortgage valuation is only what the property is "worth" to the lender, the actual buyer may think the property is "worth" more (or for that matter less.) Hence it is very easy for both statements to be true.

coachman12

LoveSauce said:

How can these two statements coexist? Always see them floating around in threads, and it’s always bugging me!

Of course, Mobile Saver is perfectly correct.
But I agree with you ( about the "bugging" ). There are certain clichés that are used on these forums that become mantras, slogans, jargon, and just become plain annoying ( another is "your credit score doesn't matter at all" ). It's not that they are factually incorrect---it's more that they do "bug" so many people who dislike clichés. It's worse , of course, when the clichés are merely "technically" correct but not actually what most people know to be untrue in the everyday world of ordinary folk
( such as saying that NS&I is not a bank when everyone views it clearly as the nation's savings bank).
Etymology never "bugs" me which is why the word "bug" in the sense you use it caught my eye---and I'll leave anyone interested to look that up themselves ( it's not  a really interesting word for lovers of etymology, but it's worth knowing if you're "into" such things-----if only because  the similar-sounding words "etymology" and "entomology" are linked in the whole thing). 
Blimey, I must be going "gaga" ( derivation interesting to lovers of the French language). OK OK, I'm stopping now and leaving this thread, never to return