20,000 undervalued help

Wes121708

We had our mortgage lender valuation come back at 25k under asking so decided to change lender and their valuation came back as asking price. We were prepared to walk away if it didn't as the seller wasn't prepared to budge.

GDB2222

Wes121708 said:

We had our mortgage lender valuation come back at 25k under asking so decided to change lender and their valuation came back as asking price. We were prepared to walk away if it didn't as the seller wasn't prepared to budge.

No worries that you might be over-paying?  At say 3%, the extra £25k will mean extra interest payments of £750 a year, plus the capital payments on top of that. 

moneysavinghero

Wes121708 said:

We had our mortgage lender valuation come back at 25k under asking so decided to change lender and their valuation came back as asking price. We were prepared to walk away if it didn't as the seller wasn't prepared to budge.

You would have had no choice but to walk away if you could not afford the increased deposit.

lookstraightahead

Wes121708 said:

We had our mortgage lender valuation come back at 25k under asking so decided to change lender and their valuation came back as asking price. We were prepared to walk away if it didn't as the seller wasn't prepared to budge.

See I would be a bit uncomfortable in this situation. If the seller wouldn't budge (their prerogative I guess) then I don't think I would either. £25k is a lot of money (unless you're talking millions of course).

Crashy_Time

NortheastEA 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!)

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

I heard that there are areas in the NE where values have not recovered from the 2008 property crash, is that true?

Crashy_Time

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 never actually sold, people made silly offers (to match silly asking prices) and then the lender valued the property more realistically?