New Build Home - Undervalued without visit

GDB2222

The developers have a problem, as they need you to set a precedent of the £20k higher price. That way they can sell the other five for £20k more, too, as surveyors can use your purchase as a precedent for those. 

If you really want this house, don’t pull out, but sit back and wait for them to sell one of the other five houses. If that is valued at the higher price, then it sets a precedent for yours and your surveyor may well increase the valuation. If it’s valued lower, then you have dodged a bullet

UnderOffer

“There is one other person who has completed on a house identical to ours, however they were cash buyers who didn't need the survey. “ 

So what did they pay? That would a comparable price to base your valuation on. 

oz0707

Was it a thing before the 08 crash where cash kickbacks on completion were a thing? Was that knocked on the head. Can see how it would pay the builders in this case

Gavin83

As I pointed out on another thread recently lenders surveyors don’t dictate the price anymore than the developer does. Just because that’s the value the surveyor has applied it doesn’t make it correct.

Honestly I think it’s unlikely the developer will drop the price. You can ask of course but expect them to say no and if they don’t it’s a bonus. If they refuse then you need to decide whether you’ll make up the shortfall or you’ll let the house go.

lookstraightahead

Gavin83 said:

As I pointed out on another thread recently lenders surveyors don’t dictate the price anymore than the developer does. Just because that’s the value the surveyor has applied it doesn’t make it correct.

Honestly I think it’s unlikely the developer will drop the price. You can ask of course but expect them to say no and if they don’t it’s a bonus. If they refuse then you need to decide whether you’ll make up the shortfall or you’ll let the house go.

Except lenders surveyors do dictate the risk the lender is willing to take, which affects sales.

A house of course is worth what someone is willing to pay for it. The op isn't willing to put in her own cash (naturally, I would feel the same if I had adverse credit as you don't want to risk 'losing' that money). The bank also feel the same. So it looks like it's not 'worth' that amount to either op or bank or surveyor.

Gavin83

lookstraightahead said:

Gavin83 said:

As I pointed out on another thread recently lenders surveyors don’t dictate the price anymore than the developer does. Just because that’s the value the surveyor has applied it doesn’t make it correct.

Honestly I think it’s unlikely the developer will drop the price. You can ask of course but expect them to say no and if they don’t it’s a bonus. If they refuse then you need to decide whether you’ll make up the shortfall or you’ll let the house go.

So it looks like it's not 'worth' that amount to either op or bank or surveyor.

Fair comment. However it seems the developer doesn’t agree so unless they can come to an agreement with the OP it seems their only option is to walk away.

Yes it might occur again but they’ll assess whether they’ll get further cash buyers or buyers with a larger deposit who will either have more generous lenders as a result or the funds to pay the shortfall. 

There’s the argument people shouldn’t pay over the valuation and it’s certainly a valid opinion but you can’t ignore the fact that many people are willing to in order to secure the house they want. This in turn feed into those only offering asking struggling to secure a property and therefore more people offering over.

GDB2222

Gavin83 said:

As I pointed out on another thread recently lenders surveyors don’t dictate the price anymore than the developer does. Just because that’s the value the surveyor has applied it doesn’t make it correct.

Honestly I think it’s unlikely the developer will drop the price. You can ask of course but expect them to say no and if they don’t it’s a bonus. If they refuse then you need to decide whether you’ll make up the shortfall or you’ll let the house go.

It depends on the local market. Round here, in London, nobody offers over asking price. The developers the op is dealing with have only sold one other house, so they may have to reduce what they are asking.

RelievedSheff

GDB2222 said:

Gavin83 said:

As I pointed out on another thread recently lenders surveyors don’t dictate the price anymore than the developer does. Just because that’s the value the surveyor has applied it doesn’t make it correct.

Honestly I think it’s unlikely the developer will drop the price. You can ask of course but expect them to say no and if they don’t it’s a bonus. If they refuse then you need to decide whether you’ll make up the shortfall or you’ll let the house go.

It depends on the local market. Round here, in London, nobody offers over asking price. The developers the op is dealing with have only sold one other house, so they may have to reduce what they are asking.

Indeed it does depend on the local market. Round here the asking price is usually just the starting point for offers with sale prices far more often than not higher than asking price. 

lookstraightahead

GDB2222 said:

Gavin83 said:

As I pointed out on another thread recently lenders surveyors don’t dictate the price anymore than the developer does. Just because that’s the value the surveyor has applied it doesn’t make it correct.

Honestly I think it’s unlikely the developer will drop the price. You can ask of course but expect them to say no and if they don’t it’s a bonus. If they refuse then you need to decide whether you’ll make up the shortfall or you’ll let the house go.

It depends on the local market. Round here, in London, nobody offers over asking price. The developers the op is dealing with have only sold one other house, so they may have to reduce what they are asking.

I don't know anyone in my circle of friends or family who has paid over asking price, ever. 

Crashy_Time

Missbunny14 said:

user1977 said:

Why would a site visit make any difference to the valuation? They know the location and the size - the condition of the property is assumed to be complete and brand new.

I don't know, It's not my job to know this information which is why I expected better answers than what I have received. 

They wouldn`t need a site visit in the case of a standard new-build, there will be some similar sales to value from, in the case of a more unique or unusual house yes maybe a visit would be required. They have lowered the value because there is more economic turmoil ahead IMO.