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

lookstraightahead

Op, whatever you decide (and I suppose I'm too long in the tooth to offer anything over valuation, just wouldn't ever), remember there will always be another house that you love even more.

PirateSwan

Actually I am going to post my email here - would appreciate any constructive criticism. Here goes:

Dear [Estate Agent]

I hope you’re having a good day.

I wanted to let you know I’ve had some worrying news regarding the house I am buying. I received a letter from my lender saying they only value the property at £157,000.

I’m deeply worried by the £7,500 difference between the offered price - £164,500 - and the valuation. It was a huge shock, as you can imagine. It leaves me at risk of going into negative equity, and it’s given me sleepless nights. It could also leave me at a disadvantage when my fixed rate mortgage expires, and I go to remortgage. 

It’s been advised to me that I should offer a revised amount, to match the lender’s valuation of £157,000. I’m sure it can be agreed this is a fairer price, as it’s a more accurate reflection of the market value.

As you’re aware, I’m a first time buyer with no chain, a good deposit, a mortgage offer on the table, and very much in a position to proceed quickly with the transaction. This is an outcome that would be highly positive for the vendor, so I hope we can agree on a price that reflects the current market more accurately.

Please can you speak to the vendor? And please let me know if you or they will be needing a copy of the valuation from my lender.

Thanks in advance for your response.

Best wishes,

[My name]

 

Snow_Angel

Hi @PirateSwan I'm sure there will be others with more experience along soon to offer you detailed advice about your e-mail. However, I think it's too wordy and 'emotional' (I understand why you're feeling emotional btw). You need to make it short and stick to facts. 

Also, I would definitely wait until the survey on Wednesday before you send any e-mail. As you say, it may give you a bit more leverage. It may also show something disastrous you weren't aware of that will make you want to pull out of the purchase anyway, although I hope not. 

Good luck with it 🤞

TheJP

PirateSwan said:

Actually I am going to post my email here - would appreciate any constructive criticism. Here goes:

Dear [Estate Agent]

I hope you’re having a good day.

I wanted to let you know I’ve had some worrying news regarding the house I am buying. I received a letter from my lender saying they only value the property at £157,000.

I’m deeply worried by the £7,500 difference between the offered price - £164,500 - and the valuation. It was a huge shock, as you can imagine. It leaves me at risk of going into negative equity, and it’s given me sleepless nights. It could also leave me at a disadvantage when my fixed rate mortgage expires, and I go to remortgage. 

It’s been advised to me that I should offer a revised amount, to match the lender’s valuation of £157,000. I’m sure it can be agreed this is a fairer price, as it’s a more accurate reflection of the market value.

As you’re aware, I’m a first time buyer with no chain, a good deposit, a mortgage offer on the table, and very much in a position to proceed quickly with the transaction. This is an outcome that would be highly positive for the vendor, so I hope we can agree on a price that reflects the current market more accurately.

Please can you speak to the vendor? And please let me know if you or they will be needing a copy of the valuation from my lender.

Thanks in advance for your response.

Best wishes,

[My name]

 

Its too long, the EA wont care about the irrelevant detail just that the house was down valued and what your revised offer is. Maybe try this and i think waiting for the survey results is sensible as you can do two birds with one stone.

Dear [Estate Agent]

I hope you’re having a good day.

I wanted to let you know that my lender has valued the property at £157,000. Taking into consideration the survey results which show XXX needs attention and with the valuation i will have to revise my offer to £157,000. 

Attached is the relevant survey report extracts detailing the work that needs to be carried out and a copy of my lenders valuation.

Please can you share with the  vendor and don't hesitate to contact me to discuss further.

Best wishes,

[My name]

benson1980

I agree. Take the emotion out of it. They’re hardly going to pull out of the sale and start all over again at first point of re negotiation so I wouldn’t fret too much. 

jimbog

Your email is too emotional as the others have said and you come across as weak. TheJP alternative is spot on 

Thrugelmir

PirateSwan said:

Actually I am going to post my email here - would appreciate any constructive criticism. Here goes:

Dear [Estate Agent]

I hope you’re having a good day.

I wanted to let you know I’ve had some worrying news regarding the house I am buying. I received a letter from my lender saying they only value the property at £157,000.

I’m deeply worried by the £7,500 difference between the offered price - £164,500 - and the valuation. It was a huge shock, as you can imagine. It leaves me at risk of going into negative equity, and it’s given me sleepless nights. It could also leave me at a disadvantage when my fixed rate mortgage expires, and I go to remortgage. 

It’s been advised to me that I should offer a revised amount, to match the lender’s valuation of £157,000. I’m sure it can be agreed this is a fairer price, as it’s a more accurate reflection of the market value.

As you’re aware, I’m a first time buyer with no chain, a good deposit, a mortgage offer on the table, and very much in a position to proceed quickly with the transaction. This is an outcome that would be highly positive for the vendor, so I hope we can agree on a price that reflects the current market more accurately.

Please can you speak to the vendor? And please let me know if you or they will be needing a copy of the valuation from my lender.

Thanks in advance for your response.

Best wishes,

[My name]

 

Ring the EA tomorrow morning and let them know your revised offer. The vendor has spent yet another week basing their future plans on a higher offer. 

PirateSwan

Thanks so much for your critiques, everyone, I really appreciate all of your input. I will revise my email as per above, and will wait until the survey comes back before sending.

TXC

Let us know how you get on OP - hopefully they can meet you in the middle. in the grand scheme of things 3.5k isnt a lot if you really love the house and can lay your hands on it

Edit: just to play devils advocate would you not pause the survey until you know if the vendor is even up for renegotiation? if its a flat no and you cant bridge the gap surely youd like to know before you plow another 500 quid into the purchase? (alongside the solicitors costs you've assumingly incurred up to this point? the way the market is at the moment and to your earlier point re your wage you'll need every spare pound you can get, cant afford to be throwing money down fallen sales if you can help it)

 I fully agree you need to loop the EA in tomorrow morning first thing and get the vendors feedback, dont prolong the agony - if only so you can get on with your life, grieve for the place and dust yourself off asap if the vendor decides not to budge 

Send the email now so it's in their box first thing and follow up with a phone call tomorrow morn. As others have said you've done nothing wrong. Get verbal confirmation of the vendors response to your offer in line with valuation and take it from there.

TheJP

TXC said:

Let us know how you get on OP - hopefully they can meet you in the middle. in the grand scheme of things 3.5k isnt a lot if you really love the house and can lay your hands on it

Edit: just to play devils advocate would you not pause the survey until you know if the vendor is even up for renegotiation? if its a flat no and you cant bridge the gap surely youd like to know before you plow another 500 quid into the purchase? (alongside the solicitors costs you've assumingly incurred up to this point? the way the market is at the moment and to your earlier point re your wage you'll need every spare pound you can get, cant afford to be throwing money down fallen sales if you can help it)

 I fully agree you need to loop the EA in tomorrow morning first thing and get the vendors feedback, dont prolong the agony - if only so you can get on with your life, grieve for the place and dust yourself off asap if the vendor decides not to budge 

Send the email now so it's in their box first thing and follow up with a phone call tomorrow morn. As others have said you've done nothing wrong. Get verbal confirmation of the vendors response to your offer in line with valuation and take it from there.

I would agree with you however the valuation alone may not tip the vendors over in reducing the price, if there are a few things in the survey that the OP is ok with living with and can manage to fix over time then it may give him more bargaining to get to the valuation price at least. 

Do whats best for you OP, i agree its not great for the vendor as the clock ticks on but the survey could be the deciding difference in their decision.