Few issues with RICS report.

EYEONME2534

Hi,

Just looking for some advice really, I'm a first time buyer and put an offer in for a £280k house and I have the valuation and report done as the same time.

My issue is that they valued the house at £230k, is £50k drop normal? 

Also in the report the house was built in 1900, they state that the house is/had wood boring bettles and it would need to get checked and maybe the house sprayed. My question is would you ask the vendors or would you pay?

One last question the owners at present have lived there for 2 years and selling due to splitting up but they have not had the boiler serviced for two years, would this be an issue?

Any info would be grateful.

Slithery

Do you have an extra £50k or a low enough LTV to make up the difference? If not then it's a non-starter.

hazyjo

EYEONME2534 said:

Hi,

Just looking for some advice really, I'm a first time buyer and put an offer in for a £280k house and I have the valuation and report done as the same time.

My issue is that they valued the house at £230k, is £50k drop normal? 

Also in the report the house was built in 1900, they state that the house is/had wood boring bettles and it would need to get checked and maybe the house sprayed. My question is would you ask the vendors or would you pay?

One last question the owners at present have lived there for 2 years and selling due to splitting up but they have not had the boiler serviced for two years, would this be an issue?

Any info would be grateful.

Are you needing a mortgage? If yes, do you have a spare 50k to make up the shortfall? If not, the rest doesn't matter. Are you sure it's not the rebuild figure and is actually the valuation?

 If you want something checked, you pay. Never trust the vendor to get any works/repairs done.

There's absolutely no legal requirement to have the boiler serviced (it's presumably not being rented out). Would be more interested in its age.

moneysavinghero

We are not in a normal market at the moment. Everyone is offering well over asking price in order to try and 'win' the property. Also sellers are getting carried away with their asking prices (because they see how crazy the market is and think someone will offer it (and they normally do ) ). 

Banks however take a more level headed sensible approach. They don't care about beating the other guy to the house, they are not panicking and thinking ' we must get this house or we might not ever find one again'. They just care about reducing the risk of losing money. So yes in the current market a £50,000 difference in valuation is not that abnormal.

I would not worry about the boiler not being serviced if you are considering paying £50k over value.

EYEONME2534

Slithery said:

Do you have an extra £50k or a low enough LTV to make up the difference? If not then it's a non-starter.

I have £52k deposit. It's like they knew how much I had.

ss2020jd

I once had a survey in a Victorian property that stated the same with the wood boring insects/woodworm that could have been historic/inactive. The surveyor recommended further investigation by a specialist and they confirmed it was inactive. As to who should pay, if you let the sellers know about the lower valuation they may offer to pay to keep you happy as a buyer. 

I would not say the two year boiler lack of service would be an issue unless it meant it invalidated the warranty, for example. If it was the last two years due to Covid it would be understandable. What is more important is the condition and safety of the boiler now. You could request a service from the buyers now but they may not agree. 

I have a boiler service history except for the last two years myself but have booked a service as I want to keep the buyers happy and to be able to pass on as complete records as possible. 

As for the down-valuation, it does seem to be common in this heated market. But can you still finance it and it is worth it to you? Otherwise, you could mention it to the sellers... 

EYEONME2534

hazyjo said:

EYEONME2534 said:

Hi,

Just looking for some advice really, I'm a first time buyer and put an offer in for a £280k house and I have the valuation and report done as the same time.

My issue is that they valued the house at £230k, is £50k drop normal? 

Also in the report the house was built in 1900, they state that the house is/had wood boring bettles and it would need to get checked and maybe the house sprayed. My question is would you ask the vendors or would you pay?

One last question the owners at present have lived there for 2 years and selling due to splitting up but they have not had the boiler serviced for two years, would this be an issue?

Any info would be grateful.

Are you needing a mortgage? If yes, do you have a spare 50k to make up the shortfall? If not, the rest doesn't matter. Are you sure it's not the rebuild figure and is actually the valuation?

 If you want something checked, you pay. Never trust the vendor to get any works/repairs done.

There's absolutely no legal requirement to have the boiler serviced (it's presumably not being rented out). Would be more interested in its age.

I have £52k deposit and it says valuation on the report. 

The boiler was installed in 2010 and isn't being rented out.

user1977

EYEONME2534 said:

hazyjo said:

EYEONME2534 said:

Hi,

Just looking for some advice really, I'm a first time buyer and put an offer in for a £280k house and I have the valuation and report done as the same time.

My issue is that they valued the house at £230k, is £50k drop normal? 

Also in the report the house was built in 1900, they state that the house is/had wood boring bettles and it would need to get checked and maybe the house sprayed. My question is would you ask the vendors or would you pay?

One last question the owners at present have lived there for 2 years and selling due to splitting up but they have not had the boiler serviced for two years, would this be an issue?

Any info would be grateful.

Are you needing a mortgage? If yes, do you have a spare 50k to make up the shortfall? If not, the rest doesn't matter. Are you sure it's not the rebuild figure and is actually the valuation?

 If you want something checked, you pay. Never trust the vendor to get any works/repairs done.

There's absolutely no legal requirement to have the boiler serviced (it's presumably not being rented out). Would be more interested in its age.

The boiler was installed in 2010 and isn't being rented out.

If I've seen the boiler working, I wouldn't get very excited about investigating further.

Slithery

EYEONME2534 said:

Slithery said:

Do you have an extra £50k or a low enough LTV to make up the difference? If not then it's a non-starter.

I have £52k deposit. It's like they knew how much I had.

So you can't afford it then. Start looking for somewhere else.

EYEONME2534

Slithery said:

EYEONME2534 said:

Slithery said:

Do you have an extra £50k or a low enough LTV to make up the difference? If not then it's a non-starter.

I have £52k deposit. It's like they knew how much I had.

So you can't afford it then. Start looking for somewhere else.

Sorry can you explain why I need to look else where?
Thanks.

Slithery

Because you can't afford the property you're currently looking at.....

The bank have valued the property at £230k. The maximum they will lend you on a 95% LTV mortgage is £230k x 0.95 = £218.5k. Add your £52k and you get a maximum total of £270.5k which is less than you need to buy the property, and I haven't even included buying costs, moving costs or an emergency fund.