Price agreed too much maybe? - best way forward?

getmore4less

Why didn't the research happen before making an offer?

Rightmove make it very easy.

They provide a starting link to similar properties (select include SSTC)

And a link to local sold prices

ele_91

If she has a large deposit she’ll probably find the mortgage company will lend the money anyway. She may not even see their valuation unless she pays for a survey. If they agreed to lend the agreed price, as a seller no way would I renegotiate on the price. She should have done all this research before offering. 

Madeinireland101

ssparks2003 said:

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. 

No I have looked on many websites and looked at many houses in the area with a similar specification and it’s my perception that the house was over priced. That’s why we are leaving it to the expert with the mortgage valuation before deciding what to do.

Madeinireland101

Redwino222 said:

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.

Yes I completely understand but if the mortgage valuation is way down then the seller is likely to face the same issue with the next buyer as well unless they get lucky with the valuation. It’s quite true that parents sometimes cannot understand the higher prices but I’m not living in the past - I have used various means to arrive at that view. My view may or may not be correct which is why we will go ahead with a valuation from the “experts”. We are unlikely to have an issue if it’s a little under - will just have to see regarding the valuation. I’m just looking for views on what % under would cause others to rethink. At an extreme would you think (despite your view on FTB’s) she should go ahead if it was down valued by 50%? I know it’s not likely to be but at what percentage would you advise against continuing?

Madeinireland101

getmore4less said:

Why didn't the research happen before making an offer?

Rightmove make it very easy.

They provide a starting link to similar properties (select include SSTC)

And a link to local sold prices

Because some people can be young and foolish 😀 There were no other bidders - it was her first offer without consultation.

Madeinireland101

Madeinireland101 said:

getmore4less said:

Why didn't the research happen before making an offer?

Rightmove make it very easy.

They provide a starting link to similar properties (select include SSTC)

And a link to local sold prices

Because some people can be young and foolish 😀 There were no other bidders - it was her first offer without consultation.

Also selecting SSTC will show you the asking price - not the selling price

Madeinireland101

ele_91 said:

If she has a large deposit she’ll probably find the mortgage company will lend the money anyway. She may not even see their valuation unless she pays for a survey. If they agreed to lend the agreed price, as a seller no way would I renegotiate on the price. She should have done all this research before offering. 

Yes she should have done the research - I know that - but she didn’t. I can’t change that now and she will honour the price so long as it’s not out substantially - so that’s what I’m asking people to comment on - how far out would it need to be before you decided to attempt to renegotiate? I fully accept that the buyer may choose not to renegotiate but it’s also not a great idea for her to continue even if the mortgage lender did choose to lend anyway on the basis of her large deposit. The mortgage lender have already said that they share the valuation figure so that’s not an issue.

Redwino222

I think you are being a little ridiculous - do you honestly think it will be down valued by 50%?  Is your daughter truly that naive?  Should she be buying a house?

clearly your daughter will have to consider what she is comfortable paying for this house - it’s unfortunate she didn’t do that before she took the house off the market.

A down valuation only impacts if if either changes the rate she will be offered for her mortgage, or means she can’t get a mortgage at all.  If she has a healthy deposit it will likely have no impact at all and she may never know what the lender valued the house at.  I had a 50% deposit so have no idea what my lender valued the house I am buying at.  But it’s not particularly relevant to me.  I bid the amount I could afford and believed the house was worth to me.  I am buying it as a home not an investment so am not too worked up about it.

I was clear that I would not negotiate a lower price on my house because of a down valuation, and only accepted offers from buyers with a strong deposit.  

I wish your daughter luck - but please advise her that if she pulls out of this sale age should take more care bidding in the future.  Property chains are stressful things and they can fall apart because people change their minds weeks or months in.

Redwino222

Are you buying this house jointly?  Why did she bid alone?

Northern_Line

If the property is down valued by a lender valuation, you might have a leg to stand on. However, their assessment if it’s a desktop valuation will only reflect historical prices.

A better assessment would be a RICS certified valuation, which will give a true reflection of the price.

If you think she’s overpaid and there’s no other down valuation from either of the above then I’m afraid at this point it’s just opinion. Properties are only worth what people are willing to pay, and in this case they were willing to pay more than what you think or have found to be reasonable.

You could always reduce the price and see what the seller says, but it’s unlikely to reflect well on you a buyer and they might just put it back on the market.