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

Gavin83

leroyJ said:

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.

It was still their choice though. If they'd have relisted they could have sold to someone with a lower LTV ratio who could have better coped with a down valuation.

I can understand someone accepting a down valuation if they're in a chain themselves and want their own purchase to go ahead but ultimately regardless of the circumstances it's always down to the seller as to what they're happy to accept.

Out of interest do you know if your friends buyers offered asking price or did they offer over?

leroyJ

Gavin83 said:

It was still their choice though. If they'd have relisted they could have sold to someone with a lower LTV ratio who could have better coped with a down valuation.

I can understand someone accepting a down valuation if they're in a chain themselves and want their own purchase to go ahead but ultimately regardless of the circumstances it's always down to the seller as to what they're happy to accept.

Out of interest do you know if your friends buyers offered asking price or did they offer over?

The offer was at asking price.  
A zone 2 London flat, with no garden, so perhaps a slightly difficult sale in the current market.
They had 2 maybe 3 offers all at asking, and picked the one in the best position.  The £20k drop was negotiated (actually the down valuation was more than this, so they met in the middle).

Crashy_Time

There is always resistance on here to price drops and "down-valuations", I suspect some people will be quite annoyed going forward.