Buyers mortgage valuation

lookstraightahead

RelievedSheff said:

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.

Although at the present time it's distorted because of the hysteria and panic over house buying (like toilet rolls).

when people realise that they can move on to another property it will calm down I'm sure.

Irishpearce26

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?

Better not tell ebay that otherwise they are done for!

They have the money, they want it, they don't mind paying extra? 

Thrugelmir

Scarlett2 said:

Thrugelmir said:

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

Hi thank you, it was comparable evidence 

Ball is in your court then. 

Tokmon

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?

If no one every paid more than the valuation then technically house prices would never go up, so the overall trend shows many people will pay more than the valuation on a house which then pushes up the valuations. 

Crashy_Time

Irishpearce26 said:

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?

Better not tell ebay that otherwise they are done for!

They have the money, they want it, they don't mind paying extra? 

Can you buy houses on e-bay?

Langtang

Crashy_Time said:

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

We've just sold a house for 18k over asking/value. If you want to live in a house, you'll do everything in your power to make it happen.

ele_91

Do you know their deposit size/LTV? This is why it may be better to choose a lower offer from a buyer with a higher LTV as they can absorb a downvaluation therefore more chance they will get to completion.

Crashy_Time

Tokmon said:

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?

If no one every paid more than the valuation then technically house prices would never go up, so the overall trend shows many people will pay more than the valuation on a house which then pushes up the valuations. 

It is banks that ultimately control valuation not people, so what you really mean is that many people are willing to borrow whatever the bank is offering/valuing for a house? The bank is aiming to create as many future income streams as possible and get people borrowing as much as possible on their house, but that has nothing to do with the real value of a house which can change very quickly if sentiment or maybe interest rates change.

lookstraightahead

Langtang said:

Crashy_Time said:

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

We've just sold a house for 18k over asking/value. If you want to live in a house, you'll do everything in your power to make it happen.

Seriously ?  I wouldn't. Has it completed and did you pay over 'value' for your onwards purchase? 

Ramouth

We have certainly had this discussion before.  There are situations where people will pay over what a house is worth.  I.e. where demand is high and supply is low, so that the alternative is to continue throwing money away as rent while prices continue to rise.