Help! Property valued 50k less than offer!!

AdrianC

Lover_of_Lycra said:

AdrianC said:

Lover_of_Lycra said:

@AdrianC, would you seriously continue the purchase of a property at the original offer price when the mortgage valuation came in at £50k less

As a generality? I can certainly see situations where I would, yes.

based on recent sold prices of two much more desirable properties?

If the house was priced that far above the market, why did the OP make that offer in the first place?
Would it not be obvious to a reasonable layman that market value was below that price?
Was the valuation simply a desktop survey?

I don't think we have anywhere near enough information to make an informed judgement of whether the OP's offer or the surveyor's valuation is more likely to be correct - so all we can do is advise on whether the situation is solvable. I'm assuming the vendor is unlikely to simply roll over and take a £50k reduction in offer...

The vendor probably won’t roll over and take a £50k reduction in offer but that doesn’t mean the OP should more for a terraced property with a recent history of subsidence than two semi detached properties on the same street sold for recently and £50k above the mortgage valuation. 

We have also been told the property was on for the same price 2 years ago and didn’t sell. 

Maybe that wouldn’t be enough to put you off and that you’d be juggling your finances to make up the £50k shortfall as you’ve suggested to the OP but for me there are too many red flags and I’d start looking elsewhere. 

I think you're reading FAR too much into my comments. I have zero opinion on which of the two figures is more accurate, because I know absolutely nothing about the properties in question.

hellomoto123

So frustrating it won't let me include links because I havent been on here long enough!
However, yes I understand from everyone seems like the only thing to do is wait for the vendor to accept the valuation price of 375k (50k reduction)  or walk away.

MaryNB

hellomoto123 said:

So frustrating it won't let me include links because I havent been on here long enough!
However, yes I understand from everyone seems like the only thing to do is wait for the vendor to accept the valuation price of 375k (50k reduction)  or walk away.

If you post the number at the end of the rightmove link people can use that to look up the property in question.

AdrianC

MaryNB said:

hellomoto123 said:

So frustrating it won't let me include links because I havent been on here long enough!
However, yes I understand from everyone seems like the only thing to do is wait for the vendor to accept the valuation price of 375k (50k reduction)  or walk away.

If you post the number at the end of the rightmove link people can use that to look up the property in question.

Or just the (full) postcode. Hints are enough. We know how to drive RM.

Crashy_Time

hellomoto123 said:

So frustrating it won't let me include links because I havent been on here long enough!
However, yes I understand from everyone seems like the only thing to do is wait for the vendor to accept the valuation price of 375k (50k reduction)  or walk away.

Yep, if stamp duty comes back that will help focus the sellers mind in your favour. There are other straws in the wind but that one will be an immediate wake up call (if it happens)

Crashy_Time

numbercruncher8 said:

Without more information I don't see how anybody can conclude anything.
But houses on the same street selling for less very recently is a bad sign.

Its entirely possible for someone to make a bid based on incomplete information, also egged on by the EA (6 offers might be an untruth), and also emotional attachment.

I think it's a bit irrelevant now to ask 'why did you make that offer in the first place'. When more information becomes available, why shouldn't your opinion change? 

Most bubble prices are a result of that sort of mix IMO.

smipsy

50k is a massive gamble. I would listen to your valuer!

K_S

@hellomoto123. A recent history of subsidence is serious. Even if you do go ahead with the purchase, do make sure the remedial work done by the vendor is up to scratch or you could end up with an un-mortgageable (and hence unsaleable without a huge discount) property at some point in the future. 

hellomoto123

K_S said:

@hellomoto123. A recent history of subsidence is serious. Even if you do go ahead with the purchase, do make sure the remedial work done by the vendor is up to scratch or you could end up with an un-mortgageable (and hence unsaleable without a huge discount) property at some point in the future. 

Thank you.
Yes, I think it is a massive gamble.
The report got back to the lender who got back to us today and will not mortgage the property. 
They've asked for a structural survey and they may consider based on the result of that.
However, i don't think its worth it.


Ah well, back to the drawing board.

[Deleted User]

hellomoto123 said:

K_S said:

@hellomoto123. A recent history of subsidence is serious. Even if you do go ahead with the purchase, do make sure the remedial work done by the vendor is up to scratch or you could end up with an un-mortgageable (and hence unsaleable without a huge discount) property at some point in the future. 

Thank you.
Yes, I think it is a massive gamble.
The report got back to the lender who got back to us today and will not mortgage the property. 
They've asked for a structural survey and they may consider based on the result of that.
However, i don't think its worth it.


Ah well, back to the drawing board.

You could always consider a move to Scotland where the home report would probably have stopped you in your tracks before even offering on at least 3 out of 4 of these properties