Price agreed too much maybe? - best way forward?

[Deleted User]

Can I ask for a rough guide to figures? .e.g. what was it on the market for, what has she offered and what do you think it's worth?

Madeinireland101

Redwino222 said:

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.

No I don’t think it will be valued at 50% down and yes that is ridiculous which is why I said in my post it was an extreme. So at what % would you have a rethink? that’s all I’m asking for views on. There is no chain involved in either direction on this house. Her bid may end up being perfectly fine - I’m not going to be relying on just my view - hence the reason the valuation will happen and as I have explained in an earlier message - we will get to see the valuation.

Madeinireland101

Northern_Line said:

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.

Thanks - so perhaps it would be best to get the RICS certified valuation then - I was unaware about the accuracy or otherwise of the desktop valuation but think she should consider the additional accuracy that would bring once we find out the type of valuation they will be doing.

Redwino222

There is no magic percentage for me.  I don’t put a whole lot of faith in lender valuations - I know the market in my area very well, know what I am willing to spend, what renovations/extensions etc will cost and go with my gut.

if she is already having cold feet then maybe this isn’t the house for her? 

Madeinireland101

Redwino222 said:

There is no magic percentage for me.  I don’t put a whole lot of faith in lender valuations - I know the market in my area very well, know what I am willing to spend, what renovations/extensions etc will cost and go with my gut.

if she is already having cold feet then maybe this isn’t the house for her? 

Ok Thanks.

Redwino222

Just looking - is this a different house to the one your daughter offered on in may at £320k and the bank valuation came back at £316k?

if it is in that case it was only a 1% difference so don’t think that would concern anyone.  

But that was last month - what happened? 

Madeinireland101

Redwino222 said:

Just looking - is this a different house to the one your daughter offered on in may at £320k and the bank valuation came back at £316k?

Yes - That’s a different daughter and she progressing with her purchase and likely to complete in another month or so

Redwino222

Wow - and you are buying a house at the minute as-well!!!  Three house purchases in one family at the same time.  No wonder everyone is stressed! 

Madeinireland101

Redwino222 said:

Wow - and you are buying a house at the minute as-well!!!  Three house purchases in one family at the same time.  No wonder everyone is stressed! 

No - There are two house purchases going on  - try reading my post on 18th May which explains that I have two daughters buying properties one of which will be a joint borrower sole proprietor mortgage - none of that complication is relevant to the basic question I am trying to ask here but thanks for your concern about the levels of stress within the household. Sometimes you do need to simplify your posts to try and develop answer which focus on the question you wished to get answered and also to use the royal “we” sometimes to protect the mistakes that your children sometimes make - but as long as they learn from it - it’s all worthwhile 😀

getmore4less

Madeinireland101 said:

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

That's why you also use the sold data which lags a few months, some will be well over 6 months from the accepted offer.

With the actual sold, the current SSTC and the unsold you get a pretty good picture of what the market is doing and what people are buying as properties transition to sold data list.

You can also glean a bit more from the history(propertylog) of quick sell or did it stick/reduce before going SSTC.


From the sold data you can also get the original listing which gives the link between asking and actual to see if there is any trends on over/under offers and any trends on asking prices.