Selling; but worried the mortgage valuation won't cover the bidding price.

Suseka97

I'm with @NinjaTune and @Johnnyh123 - its not always about profit or asset building.  I've tended to buy a property because I wanted that particular one and I've never really haggled over price and offered what I wanted to pay.  If that was over the market price I didn't really care.  I was buying a home not a house that would give me the most amount of capital in return.

If your buyers are not able to bridge the gap if its valued less they they've offered - then you either have to lower your expectations, agree to meet somewhere in the middle or hold out and withdraw your acceptance of their offer and put it back on the market.  Only you can decide based on your particular situation regarding your onward purchase and affordability of it.

lookstraightahead

Whilst I agree that a house isn't just about the cost normally, at the moment it is. People aren't offering more because they love the property, they're offering more because they're panic buying. It's happened with toilet paper, sugar, pasta, hand wash etc. There's no reality to it and although I don't see a crash, I see a heck of a lot of tears and financial issues just around the corner.
a home is for living in, yes, but when that home becomes a financial burden, the pretty wallpaper and big garden don't seem quite as welcoming.

leroyJ

This might be incredibly cynical, but what's to stop a buyer claiming a lower mortgage valuation (without actually receiving one)?  I don't think any documentation needs to be provided for it?

I guess it's similar to a house survey coming back with faults, but at least with those you can investigate each issue and negotiate.  A lenders mortgage valuation is pretty final.

Gavin83

leroyJ said:

This might be incredibly cynical, but what's to stop a buyer claiming a lower mortgage valuation (without actually receiving one)?  I don't think any documentation needs to be provided for it?

I guess it's similar to a house survey coming back with faults, but at least with those you can investigate each issue and negotiate.  A lenders mortgage valuation is pretty final.

To be honest it's largely irrelevant anyway. The buyer can reduce their offer at any time before exchange for any reason. They don't have to have a down valuation for this. Similarly a seller is under no obligation to accept a revised offer, regardless of a down valuation. They can re-market the property if they wish.

leroyJ

But the reason the buyer gives for reducing their offer is surely important? 
As a seller, you wouldn't accept the buyer asking for a reduction without hearing their reason for it would you?  So saying it's irrelevant isn't quite right.

Johnnyh123

lookstraightahead said:

Whilst I agree that a house isn't just about the cost normally, at the moment it is. People aren't offering more because they love the property, they're offering more because they're panic buying. It's happened with toilet paper, sugar, pasta, hand wash etc. There's no reality to it and although I don't see a crash, I see a heck of a lot of tears and financial issues just around the corner.
a home is for living in, yes, but when that home becomes a financial burden, the pretty wallpaper and big garden don't seem quite as welcoming.

It’s called supply and demand.  There’s whole books written about it, you should give them a go.  These factors are always at play.  If somebody is willing to pay a price for something then that’s what it’s worth to them.

Thrugelmir

Johnnyh123 said:

lookstraightahead said:

Whilst I agree that a house isn't just about the cost normally, at the moment it is. People aren't offering more because they love the property, they're offering more because they're panic buying. It's happened with toilet paper, sugar, pasta, hand wash etc. There's no reality to it and although I don't see a crash, I see a heck of a lot of tears and financial issues just around the corner.
a home is for living in, yes, but when that home becomes a financial burden, the pretty wallpaper and big garden don't seem quite as welcoming.

It’s called supply and demand.  There’s whole books written about it, you should give them a go.  These factors are always at play.  If somebody is willing to pay a price for something then that’s what it’s worth to them.

Which is easy to do when it's not your money that's being used. All markets go through cycles. Some people as a result are winners others losers. 

Gavin83

leroyJ said:

But the reason the buyer gives for reducing their offer is surely important? 
As a seller, you wouldn't accept the buyer asking for a reduction without hearing their reason for it would you?  So saying it's irrelevant isn't quite right.

Not really. Reason or no reason the seller is free to accept the reduced offer or deny the request. It's the sellers choice whether they'd accept some reasons but not others. Ultimately for most sellers I don't think it makes much difference, they'll base their decisions on their own circumstances and what offer they feel they could generate if it went back to market.

As a seller I'd be as likely to reduce the price whether they had a down valuation or just felt like reducing their offer for no reason. In the current market that would be close to zero chance of me reducing, especially if they'd over-offered and then expected it to be adjusted later.

leroyJ

Gavin83 said:

leroyJ said:

But the reason the buyer gives for reducing their offer is surely important? 
As a seller, you wouldn't accept the buyer asking for a reduction without hearing their reason for it would you?  So saying it's irrelevant isn't quite right.

Not really. Reason or no reason the seller is free to accept the reduced offer or deny the request. It's the sellers choice whether they'd accept some reasons but not others. Ultimately for most sellers I don't think it makes much difference, they'll base their decisions on their own circumstances and what offer they feel they could generate if it went back to market.

As a seller I'd be as likely to reduce the price whether they had a down valuation or just felt like reducing their offer for no reason. In the current market that would be close to zero chance of me reducing, especially if they'd over-offered and then expected it to be adjusted later.

My friends just reduced their agreed price by £20k, after a mortgage down-valuation (in this current market).  The buyers "wanted" to pay the full amount, but didn't have the funds to do so, thus making it non-negotiable.  Either sell at the reduced price or find another buyer, which a) they didn't feel like they had time to do so with the chain they were in, and b) could also get into the same issue of a mortgage valuation so why bother?

Had the buyers said there was no reason for the price reduction, (i.e. they had the funds but didn't want to pay it), there is no way they would have accepted this, and it would have instantly turned into a negotiating process.  Possibly with the same outcome, but more than likely not.  They would also be much more likely to re-list the property, knowing that the agreed price was still achievable.

lookstraightahead

Johnnyh123 said:

lookstraightahead said:

Whilst I agree that a house isn't just about the cost normally, at the moment it is. People aren't offering more because they love the property, they're offering more because they're panic buying. It's happened with toilet paper, sugar, pasta, hand wash etc. There's no reality to it and although I don't see a crash, I see a heck of a lot of tears and financial issues just around the corner.
a home is for living in, yes, but when that home becomes a financial burden, the pretty wallpaper and big garden don't seem quite as welcoming.

It’s called supply and demand.  There’s whole books written about it, you should give them a go.  These factors are always at play.  If somebody is willing to pay a price for something then that’s what it’s worth to them.

There are loads of books about human behaviour. Try giving them a go.

In this case, the bank may not be willing to pay the price.