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

Natbag

This has happened twice to me as a seller, and both times the buyer couldn't budge. However, we've been lucky in that both times we approached our vendor to explain the issue and they kindly met us half way by reducing the price of the property we were buying to keep the chain intact. You can only explain and ask.
Edited to say, your vendors could ask their vendors if they are buying another property. As the buyer in this scenario you're actually in the better position.

Crashy_Time

davidmcn said:

GDB2222 said:

davidmcn said:

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".

But this might be a temporary spike in prices, which amounts to the same as paying over the odds. Hard to tell.

Sure. We don't know what the range of other offers was. But if everybody else was also offering "over the odds" then it suggests that currently the market is confident enough of it not being merely a temporary blip. Just pointing out that valuations are based on completions from at least a few months ago, which may mean prices agreed a year ago.

The market is made by the banks, not overexcited potential buyers though?

eidand

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. 

This is the very definition of time wasting on the OPs part.

You offered over asking ( over by definition means you should have expected a lower valuation so none of this was a shock really)  to secure the property and you are now worried that the evaluation is a bit lower?

What did you expect? Pay the piper, the seller has no reason to accept lower if "it's mental our there". Why would they?

Crashy_Time

eidand said:

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. 

This is the very definition of time wasting on the OPs part.

You offered over asking ( over by definition means you should have expected a lower valuation so none of this was a shock really)  to secure the property and you are now worried that the evaluation is a bit lower?

What did you expect? Pay the piper, the seller has no reason to accept lower if "it's mental our there". Why would they?

It isn`t nearly as "mental" as the seller hoped obviously, they will struggle to get 15k more than a bank thinks it is worth from anyone IMO.

eidand

Crashy_Time said:

eidand said:

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. 

This is the very definition of time wasting on the OPs part.

You offered over asking ( over by definition means you should have expected a lower valuation so none of this was a shock really)  to secure the property and you are now worried that the evaluation is a bit lower?

What did you expect? Pay the piper, the seller has no reason to accept lower if "it's mental our there". Why would they?

It isn`t nearly as "mental" as the seller hoped obviously, they will struggle to get 15k more than a bank thinks it is worth from anyone IMO.

did you even read what this is about or are simply here to spread the same stuff you've been spreading everywhere else. At least read what the discussion is ....

Crashy_Time

My reading is that the mortgage lender told the buyer that they offered 15k too much.

Crashy_Time

eidand said:

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. 

This is the very definition of time wasting on the OPs part.

You offered over asking ( over by definition means you should have expected a lower valuation so none of this was a shock really)  to secure the property and you are now worried that the evaluation is a bit lower?

What did you expect? Pay the piper, the seller has no reason to accept lower if "it's mental our there". Why would they?

As potential buyers get used to the concept of "down valuation", and realise that it is a growing trend they will start to make less enthusiastic initial offers IMO, this will mean the seller gets less for their house but also has less of their time wasted hopefully.

Mickey666

Down-valuation numbers in isolation tell us nothing much.

Knocking a seller down by £48k is fairly trivial on a £1m house, 'in the negotiating noise' on a £500k house, but significant on a £250k house.

So how about some percentages to put these down-valuations into persepective?

ScorpiondeRooftrouser

Crashy_Time said:

eidand said:

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. 

This is the very definition of time wasting on the OPs part.

You offered over asking ( over by definition means you should have expected a lower valuation so none of this was a shock really)  to secure the property and you are now worried that the evaluation is a bit lower?

What did you expect? Pay the piper, the seller has no reason to accept lower if "it's mental our there". Why would they?

It isn`t nearly as "mental" as the seller hoped obviously, they will struggle to get 15k more than a bank thinks it is worth from anyone IMO.

Average UK house price when you joined this forum as "Crashy Time" in July 2014  : £189,709

Average house price in UK in February 2021 : £250,341

Remind us again why anyone should ever listen to you?

Crashy_Time

ScorpiondeRooftrouser said:

Crashy_Time said:

eidand said:

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. 

This is the very definition of time wasting on the OPs part.

You offered over asking ( over by definition means you should have expected a lower valuation so none of this was a shock really)  to secure the property and you are now worried that the evaluation is a bit lower?

What did you expect? Pay the piper, the seller has no reason to accept lower if "it's mental our there". Why would they?

It isn`t nearly as "mental" as the seller hoped obviously, they will struggle to get 15k more than a bank thinks it is worth from anyone IMO.

Average UK house price when you joined this forum as "Crashy Time" in July 2014  : £189,709

Average house price in UK in February 2021 : £250,341

Remind us again why anyone should ever listen to you?

 That is because transaction numbers collapsed, but how does any of that help a seller with a 15k down valuation?