20,000 undervalued help

Northernmummy26

Eserv have valued our £225,000 at £205,000 the buyer can't contest as there has only been 1 property that sold in the last 6 months for £195,000 to compare it. The buyer is now looking at other mortgages. Any advice. Obviously we can drop our price but the more we drop the less we loose. Thanks

trakky14

Its really common at the moment, house prices are a bit bonkers and lots of people near us are not getting the mortgages because of over-valued houses.

The same thing happened to us on a house we wanted to buy but it came back at £425k and the price was £465k. We renegotiated the price because we argued that nobody would get a mortgage on something 40k over value....the owner came down 9k. We were going to use savings to make up the difference as the location was ideal for us. However the owner stuck it back on the market for £465 as they felt it was worth it...needless to say it has not sold since! I think we dodged a bullet!
I would drop the price personally to a level they can afford to make up the difference or you sell to a cash buyer. 

moneysavinghero

£195k compares to £205k a lot closer than £225k.

If you don't drop the price you will probably lose the sale. The mortgage company is being sensible. Your buyer is being reckless, but that is their free choice (it's just that the mortgage company won't join them in their recklessness).

user1977

If that's the only relevant comparable, what made anybody think it's worth £225k?

RelievedSheff

If they can't make up the extra and you are not willing to drop the price then the options are limited.

They can try another mortgage lender who uses a different valuer. There are cases on here where that has worked.

Failing that remarket the property in the hope of finding a buyer who can bridge the gap between the mortgage lenders valuation and the asking price.

Northernmummy26

We were valued at £235,000 by Estate agent. As its in great condition and a fab location not many people move from these houses so there is nothing to compare against as nothing locally has sold in the past 6 months. 

Northernmummy26

Also we have found a house but if we are expected to drop our price by £20,000 then I wouldn't move

Northernmummy26

trakky14 said:

Its really common at the moment, house prices are a bit bonkers and lots of people near us are not getting the mortgages because of over-valued houses.

The same thing happened to us on a house we wanted to buy but it came back at £425k and the price was £465k. We renegotiated the price because we argued that nobody would get a mortgage on something 40k over value....the owner came down 9k. We were going to use savings to make up the difference as the location was ideal for us. However the owner stuck it back on the market for £465 as they felt it was worth it...needless to say it has not sold since! I think we dodged a bullet!
I would drop the price personally to a level they can afford to make up the difference or you sell to a cash buyer. 

OK thanks for this. Interesting to see from others experience

moneysavinghero

Northernmummy26 said:

We were valued at £235,000 by Estate agent. As its in great condition and a fab location not many people move from these houses so there is nothing to compare against as nothing locally has sold in the past 6 months. 

Was this the average of at least 3 EA valuations or just a single valuation? A lot of EA's are getting carried away with their valuations at the moment as the market is boiling over. At the end of the day if the buyers cant afford the price because they cant get a mortgage then you will have to hold out hope for a cash buyer thats loves your house so much that they are willing to pay over valuation for it.

Northernmummy26

Yes it was just onemoneysavinghero said: I know house price have gone up lots recently but the surveyer haven't caught up (in my opinion). Any thoughts of how much we reduce by? The buyer is trying for another mortgage and he still wants the house

Northernmummy26 said:

We were valued at £235,000 by Estate agent. As its in great condition and a fab location not many people move from these houses so there is nothing to compare against as nothing locally has sold in the past 6 months. 

Was this the average of at least 3 EA valuations or just a single valuation? A lot of EA's are getting carried away with their valuations at the moment as the market is boiling over. At the end of the day if the buyers cant afford the price because they cant get a mortgage then you will have to hold out hope for a cash buyer thats loves your house so much that they are willing to pay over valuation for it.

Northernmummy26

I'll also state we had 5 viewers lined upto view and we sold to the first viewer as wanted to put an offer in on a property ourselves. So we cancelled the other viewers. I know they may not have wanted our house but it was popular