20,000 undervalued help

NortheastEA

I would be very nervous and worried if they didnt - an agent is obliged to check the financial status of any person that offers - i can count on one hand the number of people in 26 years thats refused to provide proof of deposit and their agreement in principle - in the past we wouldn't necessarily share this with the seller however these days with multiple offers on mots homes sellers will look at the LTV to sometimes assess the "risk" factor due to potential down valuation
eg sold a house today following best offers and the seller has accepted an offer lower than the highest because they had a 50% LTV whereas the highest offer (5k more) was 86% LTV

NortheastEA

davilown said:

To the op, the market is very odd in the past 4 weeks. A lot of reductions are happening, and quite a few SSTC now back on the market.

I think we’re about to see a flattening of prices due to summer holidays, stamp duty etc. Add this to a potential realisation that some properties are well overpriced, they may be some disappointed vendors (and buyers!)

This has to be a local situation - I have 8 branches in the north east and there are no signs of the market slowing down - if anything with stock getting lower and lower we are finding prices continuing to rise and demand increasing. We had alot of clients sell last year and move into rented so they could be chain free when homes became available. Just done my stats for our monthly sales meeting tomo and for for every house we sold in May we took 7 offers!

In june MTD its 9

moneysavinghero

NortheastEA said:

I would be very nervous and worried if they didnt - an agent is obliged to check the financial status of any person that offers - i can count on one hand the number of people in 26 years thats refused to provide proof of deposit and their agreement in principle - in the past we wouldn't necessarily share this with the seller however these days with multiple offers on mots homes sellers will look at the LTV to sometimes assess the "risk" factor due to potential down valuation
eg sold a house today following best offers and the seller has accepted an offer lower than the highest because they had a 50% LTV whereas the highest offer (5k more) was 86% LTV

But just because they show you a bank balance with £50,000 in it, that does not mean that they have £50,000 available for a deposit. They may have some of that earmarked for something else, or they could have spent half of it 30 minutes after they showed you the proof. The example you presented demonstrates that is beneficial for  buyers to be economical with the truth.

lookstraightahead

It means it's worth that much less to the person buying it (the bank/mortgage provider). What price did you put it on the market at?

davilown

NortheastEA said:

I would be very nervous and worried if they didnt - an agent is obliged to check the financial status of any person that offers - i can count on one hand the number of people in 26 years thats refused to provide proof of deposit and their agreement in principle - in the past we wouldn't necessarily share this with the seller however these days with multiple offers on mots homes sellers will look at the LTV to sometimes assess the "risk" factor due to potential down valuation
eg sold a house today following best offers and the seller has accepted an offer lower than the highest because they had a 50% LTV whereas the highest offer (5k more) was 86% LTV

Mine hasn't at all.  They know I need a mortgage - have had no checks whatsoever.
In addition, I believe you're running a very high risk of being prosecuted under the Data Protection Act for sharing any details a buyer has supplied to you without their specific permission.  Understandable if they include it as part of their best and final offer senario, but no other situation allows this to occur.

NortheastEA

moneysavinghero said:

NortheastEA said:

I would be very nervous and worried if they didnt - an agent is obliged to check the financial status of any person that offers - i can count on one hand the number of people in 26 years thats refused to provide proof of deposit and their agreement in principle - in the past we wouldn't necessarily share this with the seller however these days with multiple offers on mots homes sellers will look at the LTV to sometimes assess the "risk" factor due to potential down valuation
eg sold a house today following best offers and the seller has accepted an offer lower than the highest because they had a 50% LTV whereas the highest offer (5k more) was 86% LTV

But just because they show you a bank balance with £50,000 in it, that does not mean that they have £50,000 available for a deposit. They may have some of that earmarked for something else, or they could have spent half of it 30 minutes after they showed you the proof. The example you presented demonstrates that is beneficial for  buyers to be economical with the truth.

Agreed - we ask what is deposit from any proof of deposit and then its all done on a goodwill and good faith basis - maybe im just lucky but I havent had any buyers do anything rash like spend half the deposit.... 

NortheastEA

davilown said:

NortheastEA said:

I would be very nervous and worried if they didnt - an agent is obliged to check the financial status of any person that offers - i can count on one hand the number of people in 26 years thats refused to provide proof of deposit and their agreement in principle - in the past we wouldn't necessarily share this with the seller however these days with multiple offers on mots homes sellers will look at the LTV to sometimes assess the "risk" factor due to potential down valuation
eg sold a house today following best offers and the seller has accepted an offer lower than the highest because they had a 50% LTV whereas the highest offer (5k more) was 86% LTV

Mine hasn't at all.  They know I need a mortgage - have had no checks whatsoever.
In addition, I believe you're running a very high risk of being prosecuted under the Data Protection Act for sharing any details a buyer has supplied to you without their specific permission.  Understandable if they include it as part of their best and final offer senario, but no other situation allows this to occur.

Every buyers gives written permission to confirm what information can be supplied and we only supply what is relevant ie if they have 100k in the bank but are putting only 20k down all we declare is they have a 20k deposit to the seller.

Again i can count on one hand how many people dont let us share the numbers.

Redwino222

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. 

Or someone with a bigger deposit?  This is only an issue for people with small deposits

Northernmummy26

lookstraightahead said:

It means it's worth that much less to the person buying it (the bank/mortgage provider). What price did you put it on the market at?

£230,000 we accepted £5000 less to offer on the one we want to buy. As they had viewers booked it was the only way to get it off the market. Otherwise we would have waited for the other viewers 

BikingBud

BlueBlanket said:

davilown said:

To the op, the market is very odd in the past 4 weeks. A lot of reductions are happening, and quite a few SSTC now back on the market.

I think we’re about to see a flattening of prices due to summer holidays, stamp duty etc. Add this to a potential realisation that some properties are well overpriced, they may be some disappointed vendors (and buyers!)

I’ve been looking since March, & seen lots of great houses, but I didn’t get a look in, as they sold like hot bread!. However one by one, they’re all starting to come back on the market. Whilst some will be happy with this, others will not!

So they didn't sell then.

And you now have an opportunity to bid at realistic prices?