Survey undervalued first home by £15,000

[Deleted User]

So I’ve just had my home buyers report back at they have valued it 15,000 under what I have offered. 

I’m a first time buyer so not 100% sure where to go from here. 

My mortgage has been accepted and approved however I’m unsure if this undervaluation will effect this?

I personally feel the house is worth what I’m paying for it however I don’t want to come to sell it in a couple of years time and they not pay anywhere near what I did! 

Should I still go ahead with the purchase? 

RelievedSheff

It would be very unusual for a lender to approve a mortgage without the valuation in place!

comeandgo

Do you have £15,000 over and above your deposit as your mortgage will be based on the lower valuation.

[Deleted User]

RelievedSheff said:

It would be very unusual for a lender to approve a mortgage without the valuation in place!

Thanks! They mortgage lender did their own valuation and they came back happy to lend me the amount I need. 

My mortgage advisor has not mentioned anything about needing a home buyers survey doing before I can continue? 

davidmcn

Is this the £89k one you were talking about on your previous thread? If you're convinced that it's worth that much, you might first want a chat with your surveyor about why they think you're paying 20% over the odds.

[Deleted User]

davidmcn said:

Is this the £89k one you were talking about on your previous thread? If you're convinced that it's worth that much, you might first want a chat with your surveyor about why they think you're paying 20% over the odds.

Yes it is! 

I wasn’t sure whether to ask him why he’s valued it like that. 

I’ve had my mortgage lender value it and they are happy lending me the £74000 I need.

This is obviously a separate valuation and I’m not sure how concerned I should be. 

My dads said not to worry as they always undervalue ha! 

davidmcn

Out of the two surveyors, I'd pay more attention to the one who has done a more detailed inspection of the property.

[Deleted User]

I’m starting to think the same! 

But where do I go from here? I really don’t want to miss out on the property but also don’t want to pay over the odds and not be able to sell it for what I need 

cattie

First off I'd see if I can get the seller to agree to a lower price in light of your homebuyers report, they don't need to know that lender is happy with amount they will loan you.  If they won't budge then, as the lender is happy to lend the amount you need & you're confident the house is worth what you'll be paying, I'd personally go ahead with the purchase.

Don't worry about what might & might not happen regarding the price in the future should you want to sell. It's quite unusual for properties not to hold their value, but with covid & the question mark over jobs & much more in the future, nobody knows how property prices fare. Buy a property to provide a secure roof over your head rather than an investment.

I did once buy a house that I sold for practically what I'd paid for it 3yrs previously as I needed a quick sale & had overpaid a little when I bought it (just as the market dipped), but when I worked out what I'd have had to have paid in rent for a similar sized property over those 3yrs, I was still quids in.

FinallyStoppedLurking

If the mortgage company are happy it is up to you.

You could go back to the vendor and re-negotiate but I doubt they would accept because of the mortgage valuation. Only you can decide if you want to potentially risk leaving money. 

[Deleted User]

The problem with going back to renegotiate the price is I was up against a cash buyer when making my offers and only just won. 

I doubt they will come down anywhere near the survey valuation