Price agreed too much maybe? - best way forward?

Madeinireland101

My daughter has agreed to purchase a property at a price just under the asking price. After some checking on various price valuation websites I am not sure she has agreed a price that reflects the true value of the property. We are going to proceed to getting it valued by the mortgage lender. The valuation they do may be desktop or physical - not sure yet. I’m not sure how accurate those valuations are and although my daughter is happy with the house, she is quite inexperienced and not sure if she just got a bit excited about owning her first home.

Anyway - if the valuation comes in around the purchase price agreed we don’t really have an issue. She has a large deposit so we could cope if it was down valued but I suppose we are now thinking what % below the purchase price we should think about attempting to renegotiate the price or indeed pulling out if renegotiation isn’t possible.

As the property is only a couple of years old and is pretty good condition we were only aiming to get the basic mortgage valuation.

What would you do?

Thanks...

Keswick1uk

Get the valuation and take stock?

What does your daughter want to do?

user1977

Why "we could cope" if it's your daughter's purchase? Does she want our advice?

Catplan

Might be different in other parts of the UK, but in Scotland the research part is usually done prior to putting in an offer. I’m not trying to be unpleasant but it would really annoy me as the seller, if someone wanted to re-negotiate I’d be putting it back on market. I’m assuming it’s not about to fall down and would generate normal levels of interest. I’m sorry but unless the survey brought up some major issues I’d not be impressed and would as a seller likely move on, mark you as unlikely to complete as a buyer. In Scotland the seller pays for a home report which would in 99% of cases if not all highlight any major issues.

Madeinireland101

Keswick1uk said:

Get the valuation and take stock?

What does your daughter want to do?

She wants to do just that but is thinking ahead about what she should do if it is downvalued.

Madeinireland101

user1977 said:

Why "we could cope" if it's your daughter's purchase? Does she want our advice?

It is her purchase. Her deposit is enough to cope with a down valuation and if it was  a large down valuation then I would give her the money to make up the difference if she truly wanted to proceed but I suppose we are thinking (I use the term “we” as I am helping her navigate the confusion of the purchase of her first property) that at some point it’s not sensible to proceed without attempting to renegotiate at least some of the down valuation so just trying to get others peoples view and their own experiences as this has never happened to me before either 😀 - She does want the advice but is not on moneysavingexpert so is happy for me to ask on her behalf.

ssparks2003

You have looked on a website, guessing something like zoopla and found a valuation for the house, and you are now qualified to say that the house is over priced? The valuations in those webs bear little or no resemblance to actual fact and should be treated the same as those little cellophane fish you got in Christmas crackers that would curl up to tell your fortune. 

purplebutterfly

We know we are probably paying a little too much for our house, given the issues brought up in the survey.

We've agreed a sale under asking and we know the vendor can't go any lower.  In an ideal world we'd renegotiate but it isn't an option. 

 We have had to very seriously what the property is worth to us - and we know it's the only house we've wanted to buy in 18 months of looking so it is worth paying the extra, regardless of physical value. 

Using Zoopla valuation, it's worth about £50K more than we're paying, using the Nationwide calculator it is worth about £45K more.  It's been on the market for 6 months with no interest ( only 2 viewings) and has dropped £24K in asking price in that time period. 

The fact that is hasn't been snapped up means I'm more inclined to believe the house-buying public than relying on valuations from websites OR estate agents

Redwino222

I am sorry but this is why I hate first time buyers.  A first time buyer offered on my house.  She started a bidding war, won and things looked good.  Sale agreed and process started.

then her mum and dad decided the price was too high. House back on the market and sale agreed again a few weeks later at a higher price.  I move next week (yeah!)

My estate agent said this happens a lot.  Parents weigh in who don’t know the area, are shocked by the price and talk their children out of the purchase.

I was incredibly irritated that someone would bid and be sale agreed on a house when they weren’t comfortable taking these decisions.  I lost weeks, other bidders had found other houses, so I had to go through another round of viewers.

smcqis

It’s a sellers market, unless something major raised in survey, either pay or pull out. I wouldn’t accept any negotiation. Nearly all houses round my area are going over asking and are prices above realistically what it is worth but that’s the market. 

user1977

Madeinireland101 said:

user1977 said:

Why "we could cope" if it's your daughter's purchase? Does she want our advice?

She does want the advice but is not on moneysavingexpert

It would be easier if she was, and it's not exactly difficult:

https://forums.moneysavingexpert.com/entry/register?Target=categories

Then none of us needs to play Chinese whispers.