House devalued

Crashy_Time

luke105 said:

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? 

Yes, if you want the house, you need to be prepared for getting caught in a price correction in this climate though, and the seller might not play ball, though in that case you should walk away and not waste time with them IMO.

luke105

Slithery said:

luke105 said:

...OR just remortgage our house. 

What would that achieve?

Well we have £45,000 equity in our house so if we remortgage we can get a very low rate 1.4% and slash a few years off our mortgage term. We could then move in 5 years. 

Or we pay 223,000 for a house that is valued by the bank at £210,000.
Surely you can see what we’d achieve

luke105

Crashy_Time said:

luke105 said:

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? 

Yes, if you want the house, you need to be prepared for getting caught in a price correction in this climate though, and the seller might not play ball, though in that case you should walk away and not waste time with them IMO.

Sorry, just to clarify.

you’re saying offer £210,000 or walk away. Yes?

Slithery

luke105 said:

Slithery said:

luke105 said:

...OR just remortgage our house. 

What would that achieve?

Well we have £45,000 equity in our house so if we remortgage we can get a very low rate 1.4% and slash a few years off our mortgage term. We could then move in 5 years. 

Or we pay 223,000 for a house that is valued by the bank at £210,000.
Surely you can see what we’d achieve

I thought you were selling your house now?

luke105

Slithery said:

luke105 said:

Slithery said:

luke105 said:

...OR just remortgage our house. 

What would that achieve?

Well we have £45,000 equity in our house so if we remortgage we can get a very low rate 1.4% and slash a few years off our mortgage term. We could then move in 5 years. 

Or we pay 223,000 for a house that is valued by the bank at £210,000.
Surely you can see what we’d achieve

I thought you were selling your house now?

Right, sorry if I’ve not made this clear.

We put our house on the market and have sold it. It is sold subject to contact as in we still live here and it’s still going through. 

We found a house and have had an offer accepted. The mortgage company has now came back and said we can have the mortgage but the house is only worth £210,000 and not the £223,000 we’ve bought it for. 

So we either have to pay the asking price and Get a worse mortgage and psotentilaly be over paying for the house.

or pay £210,000 if the buyers accept 

or if they won’t budge on price just walk away. 

I’m asking what people would do in our situation 

Getting_greyer

I think if I were in this situation I would try to renegotiate the offer to the valuation or v close to it.  I probably wouldn't have a buckshee 13k I could throw on it so that's the main reason.

If you do have the extra £13k I would consider how you feel about no longer having that significant wedge in these uncertain times.  If it brings you out in cold sweats that'll probably give you your answer.  

I should add I'm one of those optimists who think the economy is going to be booming in a few years based on no research but just blind faith in a future comprehensive covid recovery/new deal plan.  So pay no serious attention to me.

Crashy_Time

luke105 said:

Crashy_Time said:

luke105 said:

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? 

Yes, if you want the house, you need to be prepared for getting caught in a price correction in this climate though, and the seller might not play ball, though in that case you should walk away and not waste time with them IMO.

Sorry, just to clarify.

you’re saying offer £210,000 or walk away. Yes?

Or maybe offer even less than that, impossible to say without a link, but you need to actually sell your own house first.

luke105

Crashy_Time said:

luke105 said:

Crashy_Time said:

luke105 said:

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? 

Yes, if you want the house, you need to be prepared for getting caught in a price correction in this climate though, and the seller might not play ball, though in that case you should walk away and not waste time with them IMO.

Sorry, just to clarify.

you’re saying offer £210,000 or walk away. Yes?

Or maybe offer even less than that, impossible to say without a link, but you need to actually sell your own house first.

Crashy_Time said:

luke105 said:

Crashy_Time said:

luke105 said:

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? 

Yes, if you want the house, you need to be prepared for getting caught in a price correction in this climate though, and the seller might not play ball, though in that case you should walk away and not waste time with them IMO.

Sorry, just to clarify.

you’re saying offer £210,000 or walk away. Yes?

Or maybe offer even less than that, impossible to say without a link, but you need to actually sell your own house first.

Right, we have sold our house. When we move out of here we move into the new house. It’s a chain. We have sold stc. Our buyers have done everything and are waiting on us. 

Sorry there seems to be a lot of confusion about my post.  

Obviously we have sold or we wouldn’t be buying another 

Avalon29

I am in a similar situation. Price of £280k agreed with vendor. I had a private survey / valuation which gave a valuation of £270k. I then decided to apply for a mortgage and Halifax valued the property at £280k. The zoopla estimate is £259! That’s three different valuations (although I know the zoopla one isn’t really a valuation). The property needs some modernisation but perfectly liveable as it is. All other houses in the area are £290k above for a 4 bedroom house. Is it overpriced? I have no idea but right now this is the best house for the price. I could walk away and rent for a year but the amount I pay in rent will be more than the debated ‘over payment’ for the house. It is my house for the next 7+ years, in the catchment area of excellent schools and close to work.
 

My advice would be to weigh up your options. Try and negotiate with the seller and if he/she don’t budge then decide what you want to do. Some argue that a housing crash is imminent however there will always be a shortage of good quality housing in certain areas and if you’re looking to stay there long term prices should bounce back even if there is a small drop. 

luke105

Avalon29 said:

I am in a similar situation. Price of £280k agreed with vendor. I had a private survey / valuation which gave a valuation of £270k. I then decided to apply for a mortgage and Halifax valued the property at £280k. The zoopla estimate is £259! That’s three different valuations (although I know the zoopla one isn’t really a valuation). The property needs some modernisation but perfectly liveable as it is. All other houses in the area are £290k above for a 4 bedroom house. Is it overpriced? I have no idea but right now this is the best house for the price. I could walk away and rent for a year but the amount I pay in rent will be more than the debated ‘over payment’ for the house. It is my house for the next 7+ years, in the catchment area of excellent schools and close to work.
 

My advice would be to weigh up your options. Try and negotiate with the seller and if he/she don’t budge then decide what you want to do. Some argue that a housing crash is imminent however there will always be a shortage of good quality housing in certain areas and if you’re looking to stay there long term prices should bounce back even if there is a small drop. 

A new estate is being built right next to it. Around 2000 homes. I guess they will all be available with help to buy etc. I can see it being a difficult sale if I’m honest and especially as the house is more for young families/first time buyers. 

I think they will have to just accept our offer of £210,000 then if not we will just remortgage our house and wait.

we would only live in it for 5 years so it’s a bit risky knowing we might not get that money back