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

Getting_greyer

It's not like you're amending your offer because of some trifling matter about the colour of the bathroom.  Wouldn't other valuations come back as roughly the same? Remember they'd have to start again from scratch with a new buyer if not paying cash.  I'd offer the valuation first before deciding wether it's worth topping up....unless you already know it is worth it.

[Deleted User]

Getting_greyer said:

It's not like you're amending your offer because of some trifling matter about the colour of the bathroom.  Wouldn't other valuations come back as roughly the same? Remember they'd have to start again from scratch with a new buyer if not paying cash.  I'd offer the valuation first before deciding wether it's worth topping up....unless you already know it is worth it.

The valuation of a lender is not the absolute value of a property. A different lender may value it more or less. The parents recently had lenders who came in 10% apart. Another buyer could be in cash, not relying on lending at all. I think its rather wishful thinking to reduce the offer because you couldn't arrange the finance.

Getting_greyer

[Deleted User] said:

Getting_greyer said:

It's not like you're amending your offer because of some trifling matter about the colour of the bathroom.  Wouldn't other valuations come back as roughly the same? Remember they'd have to start again from scratch with a new buyer if not paying cash.  I'd offer the valuation first before deciding wether it's worth topping up....unless you already know it is worth it.

The valuation of a lender is not the absolute value of a property. A different lender may value it more or less. The parents recently had lenders who came in 10% apart. Another buyer could be in cash, not relying on lending at all. I think its rather wishful thinking to reduce the offer because you couldn't arrange the finance.

Yes those are mostly fair comments.  This is all relevant on the actual offer agreed and amount % of ltv, but for me, if I had made an offer and the bank came back with a substantially lower valuation, I would have a serious think about whether to keep to my original offer regardless of whether I had the extra cash in place or not.  So congratulations on your last sentence which I'm sure you thought was a sweet burn, but not really relevant.

[Deleted User]

Getting_greyer said:

[Deleted User] said:

Getting_greyer said:

It's not like you're amending your offer because of some trifling matter about the colour of the bathroom.  Wouldn't other valuations come back as roughly the same? Remember they'd have to start again from scratch with a new buyer if not paying cash.  I'd offer the valuation first before deciding wether it's worth topping up....unless you already know it is worth it.

The valuation of a lender is not the absolute value of a property. A different lender may value it more or less. The parents recently had lenders who came in 10% apart. Another buyer could be in cash, not relying on lending at all. I think its rather wishful thinking to reduce the offer because you couldn't arrange the finance.

Yes those are mostly fair comments.  This is all relevant on the actual offer agreed and amount % of ltv, but for me, if I had made an offer and the bank came back with a substantially lower valuation, I would have a serious think about whether to keep to my original offer regardless of whether I had the extra cash in place or not.  So congratulations on your last sentence which I'm sure you thought was a sweet burn, but not really relevant.

Not intending  to put down anyone down. Just a straightforward observation that if you outbid everyone, then the vendor will in my view have less inclination to re-open negotiations. 

livetoclimb

[Deleted User] said:

Getting_greyer said:

It's not like you're amending your offer because of some trifling matter about the colour of the bathroom.  Wouldn't other valuations come back as roughly the same? Remember they'd have to start again from scratch with a new buyer if not paying cash.  I'd offer the valuation first before deciding wether it's worth topping up....unless you already know it is worth it.

The valuation of a lender is not the absolute value of a property. A different lender may value it more or less. The parents recently had lenders who came in 10% apart. Another buyer could be in cash, not relying on lending at all. I think its rather wishful thinking to reduce the offer because you couldn't arrange the finance.

We had a 48k ‘down valuation’ earlier this year. We were able to negotiate the price down significantly. Whilst I appreciate we were lucky (and it was likely somewhat overvalued against the local market, but it’s unique and we love it) the worst anyone can say is no. 

lookstraightahead

Sellers are currently being over optimistic because buyers are panic buying. 

Of course banks are going to be cautious. 

Op, it's what it's  worth to you but don't buy if you can't afford it - move on and buy a cheaper property so you have a lower LTV.

i remember at the start of the pandemic how much everyone wanted toilet paper and how much they would pay for it. Now there's ample supply.

The property market is a mess. 

lookstraightahead

[Deleted User] said:

Getting_greyer said:

[Deleted User] said:

Getting_greyer said:

It's not like you're amending your offer because of some trifling matter about the colour of the bathroom.  Wouldn't other valuations come back as roughly the same? Remember they'd have to start again from scratch with a new buyer if not paying cash.  I'd offer the valuation first before deciding wether it's worth topping up....unless you already know it is worth it.

The valuation of a lender is not the absolute value of a property. A different lender may value it more or less. The parents recently had lenders who came in 10% apart. Another buyer could be in cash, not relying on lending at all. I think its rather wishful thinking to reduce the offer because you couldn't arrange the finance.

Yes those are mostly fair comments.  This is all relevant on the actual offer agreed and amount % of ltv, but for me, if I had made an offer and the bank came back with a substantially lower valuation, I would have a serious think about whether to keep to my original offer regardless of whether I had the extra cash in place or not.  So congratulations on your last sentence which I'm sure you thought was a sweet burn, but not really relevant.

Not intending  to put down anyone down. Just a straightforward observation that if you outbid everyone, then the vendor will in my view have less inclination to re-open negotiations. 

Or be more cautious and sensible next time about expectations.

Ramouth

Is the valuation less than the original asking price?  If not you really can’t ask the vendor to contribute IMO.  I have always felt that anything you bid over asking is the extra you are willing to pay to get a house that you really love.

[Deleted User]

lookstraightahead said:

[Deleted User] said:

Getting_greyer said:

[Deleted User] said:

Getting_greyer said:

It's not like you're amending your offer because of some trifling matter about the colour of the bathroom.  Wouldn't other valuations come back as roughly the same? Remember they'd have to start again from scratch with a new buyer if not paying cash.  I'd offer the valuation first before deciding wether it's worth topping up....unless you already know it is worth it.

The valuation of a lender is not the absolute value of a property. A different lender may value it more or less. The parents recently had lenders who came in 10% apart. Another buyer could be in cash, not relying on lending at all. I think its rather wishful thinking to reduce the offer because you couldn't arrange the finance.

Yes those are mostly fair comments.  This is all relevant on the actual offer agreed and amount % of ltv, but for me, if I had made an offer and the bank came back with a substantially lower valuation, I would have a serious think about whether to keep to my original offer regardless of whether I had the extra cash in place or not.  So congratulations on your last sentence which I'm sure you thought was a sweet burn, but not really relevant.

Not intending  to put down anyone down. Just a straightforward observation that if you outbid everyone, then the vendor will in my view have less inclination to re-open negotiations. 

Or be more cautious and sensible next time about expectations.

In the name of caution, I assume there is only so much the estate agent can do to identify that someone who has outbid others is going to flake.

Sistergold

£15k is not sooooo muuucchhh in the grand scheme of things surely? I think it boils down to how much you like/love the house? How tight are your finances? How inconvenient it will be not to move? Whenever I am paying to much I just calculate it against say rent I would have needed to pay for instance and how long that rent will take to cover the loss. So with £15K it’s less than 1year rentals as expected house rent will be average of £2500 a month. So for peace of mind and convenience you might decide to pay over the odds if you are going to stay in the place a long time and it ticks all boxes? 

If you are flexible and really fussy about what you pay then this is not a good time to buy to be honest as it’s a bit mad at the moment. You will need to then wait until a few months after stamp duty madness. At that time houses will likely sell normally with normal offers which go with valuations. No need to get into bidding wars and then be surprised when the bank tells you correct price for the house. After stamp duty madness house prices might still be high but buying will be at a more normal pace I suspect and hope. 

Houses at present are selling at what people are prepared to pay and not necessarily at what bank is prepared to loan. 

Good luck