Property ‘undervalued’ by 15k... is it fair to ask to meet in the middle?

jodiepoke

We are in the early stages of purchasing a property but the mortgage company have come back valuing the property we want to buy by 15k less than what we offered. 

We went a few thousand over asking (because it’s mental out there). The estate agent is currently filling out the forms to appeal...we aren’t hopefully because everything has jumped in price over the past few months and there isn’t much to compare it with price wise. 

Do you think it’s fair to ask the seller to meet in the middle and take a little price cut? Would you?

At the same time we don’t feel it’s worth paying over the odds for and don’t want to put ourselves in a risky position over so if they don’t we will have to leave it. 

I know it’s all down to the seller and their situation but the estate agent is taking their time and it’s driving me a little mad. 

MaryNB

You can ask for whatever reduction you want, but I would be a little miffed if I was the seller. You purposely offered over asking to get the property but are now worried that you are paying too much. Did you consider there was a risk a downvaluation could happen if you offered over asking? 

How much over asking did you offer?

moneysavinghero

Owner might consider offering it to one of those people you slightly outbid but are now thinking of massively underbidding.

As you say the market is silly at the moment - so sellers will be asking for more than the property is worth and buyers are outbidding each other in desperation to be the 'winner' of the house.

Banks don't care about any of this. They are only concerned with what the property is actually worth in the long run. So yes most valuations are going to be coming in a fair way below offer prices in the current market.

davidmcn

If it's a rising market then the prices are going to be higher than the valuations (which are largely based on prices agreed at least months ago), so you're not necessarily paying "over the odds".

leonj

Why would they reduce the price for you when they could just remarket it, they will probably be angry and think you are a time waster now

lesalanos

7.5k off 75K or 750K? 

Mutton_Geoff

jodiepoke said:

The estate agent is currently filling out the forms to appeal

That comment was the funniest part of the post.

poolboy

I am seeing a fair few properties come back on the market I suspect for this very reason.  When you offered xxx it wasn't actually your money you were bidding with, unless it's a straight cash purchase.  So the lender is protecting his interests and valuing as he sees fit, as it's his money.

The boom will come to an end soon, you may well find you dodged a bullet.

diggingdude

Why would you want to pay £7.5k more than the property is worth? The bank is trying to help you here. Are you planning on staying there a significant period of time? 

Crashy_Time

jodiepoke said:

We are in the early stages of purchasing a property but the mortgage company have come back valuing the property we want to buy by 15k less than what we offered. 

We went a few thousand over asking (because it’s mental out there). The estate agent is currently filling out the forms to appeal...we aren’t hopefully because everything has jumped in price over the past few months and there isn’t much to compare it with price wise. 

Do you think it’s fair to ask the seller to meet in the middle and take a little price cut? Would you?

At the same time we don’t feel it’s worth paying over the odds for and don’t want to put ourselves in a risky position over so if they don’t we will have to leave it. 

I know it’s all down to the seller and their situation but the estate agent is taking their time and it’s driving me a little mad. 

Obviously things are not as "mental" as the seller might have hoped, you should be asking them to accept the full price cut IMO.

Crashy_Time

leonj said:

Why would they reduce the price for you when they could just remarket it, they will probably be angry and think you are a time waster now

Because the next valuation could come in even lower would be one good reason.