House devalued

luke105

Hi guys,

we have sold our house (stc) so not moving out until we move into a new one. 

we have had an offer accepted on another house for £223,000 and mortgage accepted...HOWEVER..

the mortgage company have only valued the house at £210,000. 

The house is 3 years old and not many have resold since new. One sold not long ago for £225,000. 

For all we know though the buyers could have overpaid. 

What would you do in this scenario? 

My thoughts are that we pay £210,000 OR just remortgage our house. 

All replied appreciated, thanks!! 

Crashy_Time

You make a lower offer, don`t overpay for property at this stage with a dreadful economic outlook ahead and mortgage rates heading higher.

dunstonh

What would you do in this scenario? 

Time to play poker.    You tell the estate agent that the mortgage valuation has come in at £210k and you wish to revise your offer.  They will either reject, accept or compromise.

luke105

Crashy_Time said:

You make a lower offer, don`t overpay for property at this stage with a dreadful economic outlook ahead and mortgage rates heading higher.

And by a Lower offer do you think...£210,000? 

NameUnavailable

The press keep reporting increasing house prices so I would ask the valuation is lower when the market is on the up?

luke105

NameUnavailable said:

The press keep reporting increasing house prices so I would ask the valuation is lower when the market is on the up?

The estate agent we are buying from posted on Instagram last week that they expect house prices to drop around 10% and not recover until 2023. 

Perhaps the house is only worth £210,000. I can’t see why the valuation would be so much lower for no reason. 

DayDreamerandGeneralWaster

Can you ask them or was this a valuation for the purpose of obtaining a mortgage? 

Either way you aren't going to get more than £210k minus the agreed deposit from the lender so you need to renegotiate 

luke105

DayDreamerandGeneralWaster said:

Can you ask them or was this a valuation for the purpose of obtaining a mortgage? 

Either way you aren't going to get more than £210k minus the agreed deposit from the lender so you need to renegotiate 

This was the valuation for the mortgage. 

We can afford the extra as we have a good deposit from our house sale....but why would we throw our money away if the bank only say it’s worth £210,000. 

We feel that the seller even if they don’t go with us at £210,000 still have to try and find a buyer who’s willing to pay £13,000 over the valuation. Also hope they find a buyer with a large enough deposit to manage this considering banks are currently asking for 15% deposit minimum. 

Crashy_Time

NameUnavailable said:

The press keep reporting increasing house prices so I would ask the valuation is lower when the market is on the up?

They report stats from banks that sell mortgage debt, most people know that the housing market isn`t "on the up".

Slithery

luke105 said:

...OR just remortgage our house. 

What would that achieve?

NameUnavailable

This was published at the weekend!

https://www.express.co.uk/news/uk/1357272/uk-house-prices-2020-property-market-brexit-coronavirus

HOUSE prices in Britain have soared to a record high thanks to a "supercharged" property market. A three-bedroom semi is now worth more than a quarter of a million pounds for the first time, the country's biggest mortgage lender announced.