New Build Home - Undervalued without visit

Missbunny14

ccbrowning said:

Is it e-surv doing the survey? I'm having a lot of fun just getting them to carry one out on a new build we're looking at. Game of phone tag between everyone now for a week.

Worried we'll be in a similar situation as it's a small development of very expensive homes and we'll be one of the earlier surveys. I think a couple sold before, but at the start of year for less money.

I'd have a discussion about lowering the price or some upgrades on the house, although I doubt they will budge if they were never even contacted, as you suggest.

No we were told it was countrywide, however they were too busy so passed it to another company called Connells apparently. 

We already had 9 grands worth of extras offered to us when we reserved, before all this chaos, including our legal fees paid for. We do have the money to pay the in between (they don't know this) but its not ideal because we won't have hardly anything left for furniture etc and if the house really isn't worth as much as they're pushing us to pay, we will be in negative equity before we are even in the door. 

Missbunny14

RelievedSheff said:

It is pretty rare for a new build to be under valued which does seem to suggest that they are over priced.

This is what we were told by everyone, we did have this argument with the developers however they stood with their decision. My partner made a good point to them and said if the house is overpriced they will have this problem with every survey for this build. We have a meeting with the developers next week because funnily enough they are still trying to sell us some extras and the roof is on so we can visit the plot. I'm hoping we can discuss further then. 

ccbrowning

Missbunny14 said:

ccbrowning said:

Is it e-surv doing the survey? I'm having a lot of fun just getting them to carry one out on a new build we're looking at. Game of phone tag between everyone now for a week.

Worried we'll be in a similar situation as it's a small development of very expensive homes and we'll be one of the earlier surveys. I think a couple sold before, but at the start of year for less money.

I'd have a discussion about lowering the price or some upgrades on the house, although I doubt they will budge if they were never even contacted, as you suggest.

No we were told it was countrywide, however they were too busy so passed it to another company called Connells apparently. 

We already had 9 grands worth of extras offered to us when we reserved, before all this chaos, including our legal fees paid for. We do have the money to pay the in between (they don't know this) but its not ideal because we won't have hardly anything left for furniture etc and if the house really isn't worth as much as they're pushing us to pay, we will be in negative equity before we are even in the door. 

I see! I know how you feel and if our valuation (in person) comes back lower I'd rather back away than overpay. Not sure what you can do about no in-person valuation, though.

oz0707

Just look at a few epcs of similar newbuilds nearby, ie detached, garage, bungalow or house etc. Get the sale price and divide it by the floor area in the epc. Then multiply it by the floor area of yours. Doesn't matter if not the same builder. Unless yours has a 1 acre field or something pretty unique about it this will be what your house is worth. Can't argue with the expert values if you can't prove him wrong 

lookstraightahead

It's the bank's money and they're not prepared to take the risk at that price (whatever it is). Are you paying a low deposit?  If there's not much equity going to be put into it the bank don't have much wiggle room if it goes down in value.

what would the surveyor achieve by actually visiting the property? People but houses off plan all the time.

lookstraightahead

Missbunny14 said:

ccbrowning said:

Is it e-surv doing the survey? I'm having a lot of fun just getting them to carry one out on a new build we're looking at. Game of phone tag between everyone now for a week.

Worried we'll be in a similar situation as it's a small development of very expensive homes and we'll be one of the earlier surveys. I think a couple sold before, but at the start of year for less money.

I'd have a discussion about lowering the price or some upgrades on the house, although I doubt they will budge if they were never even contacted, as you suggest.

No we were told it was countrywide, however they were too busy so passed it to another company called Connells apparently. 

We already had 9 grands worth of extras offered to us when we reserved, before all this chaos, including our legal fees paid for. We do have the money to pay the in between (they don't know this) but its not ideal because we won't have hardly anything left for furniture etc and if the house really isn't worth as much as they're pushing us to pay, we will be in negative equity before we are even in the door. 

Think about what you've said here. You have the money to make up the difference but you're not willing to. Same as the bank really. 

If you think their valuation is wrong, make up the difference. If you think their valuation is right, then don't pay the extra £20k.

Missbunny14

lookstraightahead said:

It's the bank's money and they're not prepared to take the risk at that price (whatever it is). Are you paying a low deposit?  If there's not much equity going to be put into it the bank don't have much wiggle room if it goes down in value.

what would the surveyor achieve by actually visiting the property? People but houses off plan all the time.

Like I said, I don't know this isn't my job. All I know is that when the mortgage company found out the surveyor didn't go to site they wanted the value to be reviewed. 

lookstraightahead

Missbunny14 said:

lookstraightahead said:

It's the bank's money and they're not prepared to take the risk at that price (whatever it is). Are you paying a low deposit?  If there's not much equity going to be put into it the bank don't have much wiggle room if it goes down in value.

what would the surveyor achieve by actually visiting the property? People but houses off plan all the time.

Like I said, I don't know this isn't my job. All I know is that when the mortgage company found out the surveyor didn't go to site they wanted the value to be reviewed. 

I would suggest the mortgage company just want proof as to why you and the developer think it's worth more than what  they (the mortgage company) are being advised it's worth.

They're believing a surveyor rather than a greedy developer. So they're asking you to prove otherwise. They're not saying the surveyor is wrong.

it's all about risk. I had a desktop valuation on my property but I had over 40% deposit so there was little risk for the bank.  How much deposit are you putting down (hence my point about you wanting to keep the cash for furniture etc).

[Deleted User]

Chances are it is over priced, most new builds are.

Thrugelmir

Missbunny14 said:

lookstraightahead said:

It's the bank's money and they're not prepared to take the risk at that price (whatever it is). Are you paying a low deposit?  If there's not much equity going to be put into it the bank don't have much wiggle room if it goes down in value.

what would the surveyor achieve by actually visiting the property? People but houses off plan all the time.

Like I said, I don't know this isn't my job. All I know is that when the mortgage company found out the surveyor didn't go to site they wanted the value to be reviewed. 

I doubt that to be the case. The surveyor (or indeed their firm) has more than likely already valued other properties on the same development. House prices are subjective. Always have been.