Private survey under valued by 15000

theartfullodger

seanm89 said:

We are currently in the middle of purchasing a house and just had the survey come back with a few issues but the biggest concern was its valuation came back 15000 under what we have currently agreed. ....

Re...

Private survey under valued by 15000

No, your offer has been made at £15,000 over what it's worth.

Happens in buying and selling. A bit like marriage, you won't know until a couple of years if it was a good idea or not.

AdrianC

MEM62 said:

binao said:

It's been reported Multi property landlords are reducing risks by  selling property, then buying when prices go down.

Errrr........No.  This isn't happening.  

Lots of things get reported, despite not actually happening...

Crashy_Time

AdrianC said:

That downvaluation is one person's deliberately conservative estimate of the value. You and the vendor shared a different opinion of the value.

The question is whether it affects your ability to afford it, because of affecting your lender's willingness to lend sufficient money.

The real question is how much of a loss or negative equity you can stomach for the "dream home" (not sure if it is your dream home or not) Use PropertyLog etc. to see how sentiment is faring among other sellers in the area and use that as leverage for a price drop if you can, although the valuation is pretty solid leverage in itself IMO.

seanm89

theartfullodger said:

seanm89 said:

We are currently in the middle of purchasing a house and just had the survey come back with a few issues but the biggest concern was its valuation came back 15000 under what we have currently agreed. ....

Re...

Private survey under valued by 15000

No, your offer has been made at £15,000 over what it's worth.

Happens in buying and selling. A bit like marriage, you won't know until a couple of years if it was a good idea or not.

My favourite reply by far. 
For some Context the price is 465000 and I guess my issue is, these Inflated prices have been driven by the stamp duty holiday, if we don't make the 31st deadline due to complications involved with the selling process, I'm not sure I want to be dragged along for another 13500 in stamp duty when I have already had this down valuation.

Also I will add there is currently 5 in the chain and I'm in the middle. Me my buyer and their buyer have already signed all the contract info and had all the searches back so basically awaiting the exchange, however I know my seller has only just begun their side and their sellers as previously mentioned have complications of dealing with a probate property which I have no idea about 

Thrugelmir

seanm89 said:

theartfullodger said:

seanm89 said:

We are currently in the middle of purchasing a house and just had the survey come back with a few issues but the biggest concern was its valuation came back 15000 under what we have currently agreed. ....

Re...

Private survey under valued by 15000

No, your offer has been made at £15,000 over what it's worth.

Happens in buying and selling. A bit like marriage, you won't know until a couple of years if it was a good idea or not.

For some Context the price is 465000 and I guess my issue is, these Inflated prices have been driven by the stamp duty holiday, if we don't make the 31st deadline due to complications involved with the selling process, I'm not sure I want to be dragged along for another 13500 in stamp duty when I have already had this down valuation.

As far as the valuation for the mortgage is concerned. 15k is 3%. That's marginal in the broader scheme of things.  You could say that the offer price has been inflated by stamp duty. 

GDB2222

For some Context the price is 465000 and I guess my issue is, these Inflated prices have been driven by the stamp duty holiday, if we don't make the 31st deadline due to complications involved with the selling process, I'm not sure I want to be dragged along for another 13500 in stamp duty when I have already had this down valuation.

Also I will add there is currently 5 in the chain and I'm in the middle. Me my buyer and their buyer have already signed all the contract info and had all the searches back so basically awaiting the exchange, however I know my seller has only just begun their side and their sellers as previously mentioned have complications of dealing with a probate property which I have no idea about 

Clearly, the price agreed is intended to be for completion (not exchange) before 31 March. You can drop out at any time before exchange, and it's probably not necessary to spell this out. Everyone in the chain is in much the same position, and I expect there will be some renegotiation if the deadline is missed. 
 

theartfullodger

seanm89 said:

My favourite reply by far. ..

Thank you for your kind words.

Crashy_Time

https://www.moneysavingexpert.com/news/2020/12/martin-lewis-mortgage-prisoners-treasury-committee/?_ga=2.36565088.1792857054.1607775523-1977397171.1603996774

Basically the cheaper you get the house the less potential hassles down the line.

Crashy_Time

MEM62 said:

binao said:

It's been reported Multi property landlords are reducing risks by  selling property, then buying when prices go down.

Errrr........No.  This isn't happening.  

You can`t know this for the whole country/all landlords, maybe some are. No idea who would be buying though?

seanm89

GDB2222 said:

Clearly, the price agreed is intended to be for completion (not exchange) before 31 March. You can drop out at any time before exchange, and it's probably not necessary to spell this out. Everyone in the chain is in much the same position, and I expect there will be some renegotiation if the deadline is missed. 

what comeback do you have if you exchange contracts and we all agree to move before march 31st but for whatever reason it doesnt happen? if theres no way back i cant imagine the seller renegotiating