Buyers mortgage valuation

Scarlett2

Just wondered if there was any body could help us with a scenario. Buyers have received a mortgage valuation and called our estate agents to reduce the price of the agreed price. The estate agent and us have requested the proof of the valuation report to enable us to discuss this. The surveyors report was fine. Wondered if anyone else has had this type of scenario after 2 months from offer and is the beginning of the end if the buyers are just blagging as they have not provided the mortgage valuation/

lookstraightahead

It happens a lot -sounds like the mortgage company have 'down' valued to what they think the risk/house is worth.

Did your buyers pay over asking price? 

Arfa__

We're currently selling and our EA warned us this has been happening a lot, especially where the buyer has offered particularly high. From what I understood, it's only a probably if the buyer doesn't have sufficient deposit and are borrowing more than the mortgage valuation. If they've got the cash or deposit, there's nowt to stop them from paying more.

Which category does your buyer fall in? Are they still able to proceed with their original offer or can they simply not borrow enough now?

Sazzy1253

We bought a house that was down valued quite a bit (we offered asking price). With the survey details (few issues but nothing massive) we met in the middle of the valuation and asking price with the seller. 

Gavin83

Scarlett2 said:

Just wondered if there was any body could help us with a scenario. Buyers have received a mortgage valuation and called our estate agents to reduce the price of the agreed price. The estate agent and us have requested the proof of the valuation report to enable us to discuss this. The surveyors report was fine. Wondered if anyone else has had this type of scenario after 2 months from offer and is the beginning of the end if the buyers are just blagging as they have not provided the mortgage valuation/

At what price was the house marketed at, what price did they offer and what has the mortgage company valued it at?

Crashy_Time

lookstraightahead said:

It happens a lot -sounds like the mortgage company have 'down' valued to what they think the risk/house is worth.

Did your buyers pay over asking price? 

"offer" you mean? A buyers perception of the market can often be very different to the financial reality of the mortgage debt available to them.

Thrugelmir

What else was said in relation to the price reduction. Reasons given? 

lookstraightahead

Arfa__ said:

We're currently selling and our EA warned us this has been happening a lot, especially where the buyer has offered particularly high. From what I understood, it's only a probably if the buyer doesn't have sufficient deposit and are borrowing more than the mortgage valuation. If they've got the cash or deposit, there's nowt to stop them from paying more.

Which category does your buyer fall in? Are they still able to proceed with their original offer or can they simply not borrow enough now?

Agreed, but the way buyers are stretching themselves most are unlikely to have the extra cash slushing around.

Op excepted, lots of vendors are choosing the highest 'bidder' rather than the buyer more likely to be able to proceed to completion.

it was always going to happen at some point, in this crazy time of over ambitious vendors (op excepted again) .

it's probably not a blag, op. 

Crashy_Time

Arfa__ said:

We're currently selling and our EA warned us this has been happening a lot, especially where the buyer has offered particularly high. From what I understood, it's only a probably if the buyer doesn't have sufficient deposit and are borrowing more than the mortgage valuation. If they've got the cash or deposit, there's nowt to stop them from paying more.

Which category does your buyer fall in? Are they still able to proceed with their original offer or can they simply not borrow enough now?

Why would anyone want to pay more than the valuation on a house?

RelievedSheff

Crashy_Time said:

Arfa__ said:

We're currently selling and our EA warned us this has been happening a lot, especially where the buyer has offered particularly high. From what I understood, it's only a probably if the buyer doesn't have sufficient deposit and are borrowing more than the mortgage valuation. If they've got the cash or deposit, there's nowt to stop them from paying more.

Which category does your buyer fall in? Are they still able to proceed with their original offer or can they simply not borrow enough now?

Why would anyone want to pay more than the valuation on a house?

Because they want to live in that house?

A house can be worth to someone more than monetary terms.

Scarlett2

Thrugelmir said:

What else was said in relation to the price reduction. Reasons given? 

Hi thank you, it was comparable evidence