FTB in a panic: Lender down-valued property by several thousand. How do I renegotiate price?

Sistergold

If you can afford it. If there are no structural concerns with the house then I don’t suppose £7k is too much in the grand scheme of house ownership. After 5years you would have forgotten that you “overpayed”. To be honest renting is a stress on its own and £7k will be overtaken by rent/house increases if you don’t buy as soon as you can. Buying a house is always a gamble but one will need a roof over ones head no matter what. 

Crashy_Time

Sistergold said:

If you can afford it. If there are no structural concerns with the house then I don’t suppose £7k is too much in the grand scheme of house ownership. After 5years you would have forgotten “overplayed”. To be honest renting is a stress on its own and £7k will be overtaken by rent/house increases if you don’t buy as soon as you can. Buying a house is always a gamble but one will need a roof over ones head no matter what. 

Not unless wages rise across the board and there are no interest rate rises, sales are already way down anyway, but the main point is that the OP can`t afford 7k, just like many other people today, why do you think there was such a stampede to get mortgage debt during the SDH!

benson1980

Sophie8916 said:

Crashy_Time said:

PirateSwan said:

Hi property peeps

Jumpy / red-faced FTB here

I'm looking for some advice on the down-valuing of a property I offered on a few weeks back

My lender has down-valued it at £7k less than the price I offered (and had accepted). (Backstory: it went to sealed bids. I am at a low ebb life wise and fell for all of the EA's selling tactics when making my bid. Properties are slipping out of affordability reach where I live, so panicked and offered the outer limits of what I can afford. £7k is a huge amount for me as my wage isn't fantastic)

I am totally kicking myself and am also worried if the down valuation will go against me in the future. I have read that when I come out of my fixed rate mortgage then a down valuation could work against me when I apply for a new fixed rate mortgage for the house.

Has anyone ever renegotiated after a down valuation? And If so, what sort of facts / figures did you put forward to support your case?

Buyers, how did you go about it? What did you say to the EA / vendor? And what was the outcome for you?

Sellers: Have you accepted a down valuation and what prompted you to make the decision?

I'd be eternally grateful for any advice anyone can give me. 

Thanks in advance.

P

Are you sure you should be buying a property, what happens when you get a large repair bill? The good news is that when mortgage rates rise houses are going to get cheaper, you should just wait IMO, or alternatively drop your offer by 10k citing "market conditions".

ah this is interesting, when do you think it will be? weve just sold out property (doing a sell high buy cheap approach!) and hoping within 6 months things may be cheaper for us

Risky strategy.  A lot of people said this about the pandemic and driving prices down. We know people who went into rented having sold up and are now convinced the market is over priced and haven’t found anywhere for well over a year. The reality is the market has now over taken them and houses are 70 to 80k more, compared with when they sold. There may be some adjustment at some point, but again people predicting price reductions when interest rates increase are the same people who predicted a crash when covid and lockdown hit. How wrong they were.

Crashy_Time

benson1980 said:

Sophie8916 said:

Crashy_Time said:

PirateSwan said:

Hi property peeps

Jumpy / red-faced FTB here

I'm looking for some advice on the down-valuing of a property I offered on a few weeks back

My lender has down-valued it at £7k less than the price I offered (and had accepted). (Backstory: it went to sealed bids. I am at a low ebb life wise and fell for all of the EA's selling tactics when making my bid. Properties are slipping out of affordability reach where I live, so panicked and offered the outer limits of what I can afford. £7k is a huge amount for me as my wage isn't fantastic)

I am totally kicking myself and am also worried if the down valuation will go against me in the future. I have read that when I come out of my fixed rate mortgage then a down valuation could work against me when I apply for a new fixed rate mortgage for the house.

Has anyone ever renegotiated after a down valuation? And If so, what sort of facts / figures did you put forward to support your case?

Buyers, how did you go about it? What did you say to the EA / vendor? And what was the outcome for you?

Sellers: Have you accepted a down valuation and what prompted you to make the decision?

I'd be eternally grateful for any advice anyone can give me. 

Thanks in advance.

P

Are you sure you should be buying a property, what happens when you get a large repair bill? The good news is that when mortgage rates rise houses are going to get cheaper, you should just wait IMO, or alternatively drop your offer by 10k citing "market conditions".

ah this is interesting, when do you think it will be? weve just sold out property (doing a sell high buy cheap approach!) and hoping within 6 months things may be cheaper for us

Risky strategy.  A lot of people said this about the pandemic and driving prices down. We know people who went into rented having sold up and are now convinced the market is over priced and haven’t found anywhere for well over a year. The reality is the market has now over taken them and houses are 70 to 80k more, compared with when they sold. There may be some adjustment at some point, but again people predicting price reductions when interest rates increase are the same people who predicted a crash when covid and lockdown hit. How wrong they were.

A lot of that was simply the SDH, sales are way down now and it is too early to say that Covid/Lockdowns are behind us.
Caution is probably best when taking on big mortgage debt in this environment IMO.

https://www.express.co.uk/news/world/1523059/EU-news-property-market-europe-ecb-Poland-belarus-migrants/amp

My advice is still to take 10k off the offer and stand firm.

pretamang

lookstraightahead said:

pretamang said:

This happened to me when buying. The seller wouldn't budge on price.

We went for a different mortgage, who did their own valuation and this time agreed with the full purchase price. 

This is a bit of a gamble - some lenders use the same valuer so it could have come back at the same price, or perhaps even lower. Plus we had to pay £500 for the 2nd survey, which we'd have lost if the valuation wasn't where we wanted it or the seller didn't move after a 2nd low valuation.

Can you find another mortgage to try a 2nd valuation, and can you afford to lose the fee if you can't find one that's free?

The gamble is buying over value surely. 

I would have told the vendor to do one.

why, out of interest, did you want to pay more for your property than its value? I presume you're thinking of staying for a long time.

There were very few comparable sales to the property we were buying, only the 2nd to move on that street in 15 years (the other had only just completed so the price/data wasn't logged with LR yet) - we felt that it was worth what we offered and that a value based on data rather than an actual visit wasn't accurate, we wanted a 2nd opinion and the seller also wanted to see this before considering a re-negotiation on price.

the 2nd valuer agreed with the purchase price, so which one was correct, did we overpay? impossible to know for sure but we wanted that house and were happy we got it at that price

benson1980

Crashy_Time said:

benson1980 said:

Sophie8916 said:

Crashy_Time said:

PirateSwan said:

Hi property peeps

Jumpy / red-faced FTB here

I'm looking for some advice on the down-valuing of a property I offered on a few weeks back

My lender has down-valued it at £7k less than the price I offered (and had accepted). (Backstory: it went to sealed bids. I am at a low ebb life wise and fell for all of the EA's selling tactics when making my bid. Properties are slipping out of affordability reach where I live, so panicked and offered the outer limits of what I can afford. £7k is a huge amount for me as my wage isn't fantastic)

I am totally kicking myself and am also worried if the down valuation will go against me in the future. I have read that when I come out of my fixed rate mortgage then a down valuation could work against me when I apply for a new fixed rate mortgage for the house.

Has anyone ever renegotiated after a down valuation? And If so, what sort of facts / figures did you put forward to support your case?

Buyers, how did you go about it? What did you say to the EA / vendor? And what was the outcome for you?

Sellers: Have you accepted a down valuation and what prompted you to make the decision?

I'd be eternally grateful for any advice anyone can give me. 

Thanks in advance.

P

Are you sure you should be buying a property, what happens when you get a large repair bill? The good news is that when mortgage rates rise houses are going to get cheaper, you should just wait IMO, or alternatively drop your offer by 10k citing "market conditions".

ah this is interesting, when do you think it will be? weve just sold out property (doing a sell high buy cheap approach!) and hoping within 6 months things may be cheaper for us

Risky strategy.  A lot of people said this about the pandemic and driving prices down. We know people who went into rented having sold up and are now convinced the market is over priced and haven’t found anywhere for well over a year. The reality is the market has now over taken them and houses are 70 to 80k more, compared with when they sold. There may be some adjustment at some point, but again people predicting price reductions when interest rates increase are the same people who predicted a crash when covid and lockdown hit. How wrong they were.

A lot of that was simply the SDH, sales are way down now and it is too early to say that Covid/Lockdowns are behind us.
Caution is probably best when taking on big mortgage debt in this environment IMO.

https://www.express.co.uk/news/world/1523059/EU-news-property-market-europe-ecb-Poland-belarus-migrants/amp

My advice is still to take 10k off the offer and stand firm.

Did prices crash when SDH ended- again as some predicted? 

Caution always, and caution should also be applied when coming off the ladder and getting back on at a later date in the hope of a ‘correction’.

hannahcolobus

OP I had the experience of being the seller in this situation a couple of years back. It was in one of those ‘up and coming’ areas and as a result the estate agents were whipping every buyer into a frenzy and every property was going way above asking price after being at sealed bids.

I got four final offers within three days, all above asking price. So from my point of view, once you go over asking price you’re not really paying what it’s worth, you’re basically just paying a price to secure the house! Their valuation came back 10k less than they’d offered (but still above what id listed the house at) and they said they would pull out if I didn’t reduce to match their valuation. I was quite angry to be honest, they took it upon themselves to go over asking price if to secure the house and win the bid so to then try to reduce felt very sneaky. I refused and also threatened to pull out and they changed their mind within the hour.

I don’t think there’s any harm in asking (I probably would myself) but I think you have to be very tactical about how you do it. I personally wouldn’t worry about the down valuation, banks do it all the time. Could you maybe ask if they would meet you halfway? Then you’re still making a saving, but you’re not risking souring the whole relationship
for the sake of £7k.

Crashy_Time

benson1980 said:

Crashy_Time said:

benson1980 said:

Sophie8916 said:

Crashy_Time said:

PirateSwan said:

Hi property peeps

Jumpy / red-faced FTB here

I'm looking for some advice on the down-valuing of a property I offered on a few weeks back

My lender has down-valued it at £7k less than the price I offered (and had accepted). (Backstory: it went to sealed bids. I am at a low ebb life wise and fell for all of the EA's selling tactics when making my bid. Properties are slipping out of affordability reach where I live, so panicked and offered the outer limits of what I can afford. £7k is a huge amount for me as my wage isn't fantastic)

I am totally kicking myself and am also worried if the down valuation will go against me in the future. I have read that when I come out of my fixed rate mortgage then a down valuation could work against me when I apply for a new fixed rate mortgage for the house.

Has anyone ever renegotiated after a down valuation? And If so, what sort of facts / figures did you put forward to support your case?

Buyers, how did you go about it? What did you say to the EA / vendor? And what was the outcome for you?

Sellers: Have you accepted a down valuation and what prompted you to make the decision?

I'd be eternally grateful for any advice anyone can give me. 

Thanks in advance.

P

Are you sure you should be buying a property, what happens when you get a large repair bill? The good news is that when mortgage rates rise houses are going to get cheaper, you should just wait IMO, or alternatively drop your offer by 10k citing "market conditions".

ah this is interesting, when do you think it will be? weve just sold out property (doing a sell high buy cheap approach!) and hoping within 6 months things may be cheaper for us

Risky strategy.  A lot of people said this about the pandemic and driving prices down. We know people who went into rented having sold up and are now convinced the market is over priced and haven’t found anywhere for well over a year. The reality is the market has now over taken them and houses are 70 to 80k more, compared with when they sold. There may be some adjustment at some point, but again people predicting price reductions when interest rates increase are the same people who predicted a crash when covid and lockdown hit. How wrong they were.

A lot of that was simply the SDH, sales are way down now and it is too early to say that Covid/Lockdowns are behind us.
Caution is probably best when taking on big mortgage debt in this environment IMO.

https://www.express.co.uk/news/world/1523059/EU-news-property-market-europe-ecb-Poland-belarus-migrants/amp

My advice is still to take 10k off the offer and stand firm.

Did prices crash when SDH ended- again as some predicted? 

Caution always, and caution should also be applied when coming off the ladder and getting back on at a later date in the hope of a ‘correction’.

Sales have crashed due to end of SDH, broken chains and banks "down-valuing", check LR for more detail, all that holds prices up is low mortgage rates.

MsACam

Sales have crashed because there is no stock. Everyone who was potentially thinking of moving has done so to take advantage of SDH. Sales were frontloaded. Most who are selling now need to do so rather than electing to do so. 

aoleks

Crashy_Time said:

benson1980 said:

Crashy_Time said:

benson1980 said:

Sophie8916 said:

Crashy_Time said:

PirateSwan said:

Hi property peeps

Jumpy / red-faced FTB here

I'm looking for some advice on the down-valuing of a property I offered on a few weeks back

My lender has down-valued it at £7k less than the price I offered (and had accepted). (Backstory: it went to sealed bids. I am at a low ebb life wise and fell for all of the EA's selling tactics when making my bid. Properties are slipping out of affordability reach where I live, so panicked and offered the outer limits of what I can afford. £7k is a huge amount for me as my wage isn't fantastic)

I am totally kicking myself and am also worried if the down valuation will go against me in the future. I have read that when I come out of my fixed rate mortgage then a down valuation could work against me when I apply for a new fixed rate mortgage for the house.

Has anyone ever renegotiated after a down valuation? And If so, what sort of facts / figures did you put forward to support your case?

Buyers, how did you go about it? What did you say to the EA / vendor? And what was the outcome for you?

Sellers: Have you accepted a down valuation and what prompted you to make the decision?

I'd be eternally grateful for any advice anyone can give me. 

Thanks in advance.

P

Are you sure you should be buying a property, what happens when you get a large repair bill? The good news is that when mortgage rates rise houses are going to get cheaper, you should just wait IMO, or alternatively drop your offer by 10k citing "market conditions".

ah this is interesting, when do you think it will be? weve just sold out property (doing a sell high buy cheap approach!) and hoping within 6 months things may be cheaper for us

Risky strategy.  A lot of people said this about the pandemic and driving prices down. We know people who went into rented having sold up and are now convinced the market is over priced and haven’t found anywhere for well over a year. The reality is the market has now over taken them and houses are 70 to 80k more, compared with when they sold. There may be some adjustment at some point, but again people predicting price reductions when interest rates increase are the same people who predicted a crash when covid and lockdown hit. How wrong they were.

A lot of that was simply the SDH, sales are way down now and it is too early to say that Covid/Lockdowns are behind us.
Caution is probably best when taking on big mortgage debt in this environment IMO.

https://www.express.co.uk/news/world/1523059/EU-news-property-market-europe-ecb-Poland-belarus-migrants/amp

My advice is still to take 10k off the offer and stand firm.

Did prices crash when SDH ended- again as some predicted? 

Caution always, and caution should also be applied when coming off the ladder and getting back on at a later date in the hope of a ‘correction’.

Sales have crashed due to end of SDH, broken chains and banks "down-valuing", check LR for more detail, all that holds prices up is low mortgage rates.

nothing has crashed mate, prices are still going up and houses are being snatched within days, if not hours. broken chains has nothing to do with house prices, they were always a thing and down-valuing is different from a crash. yes, some chancers will add £50k on top of the value of the house hoping to trap an idiot in a transaction, but those usually don't sell. everything else sells like hot bread and prices haven't gone down one single penny for years...