New Build Home - Undervalued without visit

RelievedSheff

lookstraightahead said:

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. 

We have several family members and friends and colleagues who are currently trying to buy property and are all ending in bidding wars with the properties going well over asking price.

One colleague put in an offer £20k over asking price on a £130k ex council house and was beaten too it by someone who offered more. Final selling price £167.5k.

The other halfs father has had to offer £50k over asking to secure the bungalow he wants. 

lookstraightahead

RelievedSheff said:

lookstraightahead said:

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. 

We have several family members and friends and colleagues who are currently trying to buy property and are all ending in bidding wars with the properties going well over asking price.

One colleague put in an offer £20k over asking price on a £130k ex council house and was beaten too it by someone who offered more. Final selling price £167.5k.

The other halfs father has had to offer £50k over asking to secure the bungalow he wants. 

How do people make up the difference all the time between valuation and what they will pay?
I know it's happening, I just think it's like panic buying. 

[Deleted User]

Having bought 5 houses from new over the years, any valuation given to the mortgage lender will invariably be below market price. It reflects what the mortgage lender could expect to recover if it had to sell the house on quickly in the event of a default. I have also had mortgages greater than the valuation which at the end of the day comes down to such things as security of employment and credit history. 

RelievedSheff

lookstraightahead said:

RelievedSheff said:

lookstraightahead said:

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. 

We have several family members and friends and colleagues who are currently trying to buy property and are all ending in bidding wars with the properties going well over asking price.

One colleague put in an offer £20k over asking price on a £130k ex council house and was beaten too it by someone who offered more. Final selling price £167.5k.

The other halfs father has had to offer £50k over asking to secure the bungalow he wants. 

How do people make up the difference all the time between valuation and what they will pay?
I know it's happening, I just think it's like panic buying. 

In FIL's case he is a cash buyer. So long as he is happy with the price that is all that matters.

As for the others I have no idea. Presumably they have the funds available to make up the difference or the valuers are agreeing with the offer prices. 

[Deleted User]

lookstraightahead said:

RelievedSheff said:

lookstraightahead said:

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. 

We have several family members and friends and colleagues who are currently trying to buy property and are all ending in bidding wars with the properties going well over asking price.

One colleague put in an offer £20k over asking price on a £130k ex council house and was beaten too it by someone who offered more. Final selling price £167.5k.

The other halfs father has had to offer £50k over asking to secure the bungalow he wants. 

How do people make up the difference all the time between valuation and what they will pay?
I know it's happening, I just think it's like panic buying. 

Cash buyers, often buy to let. Or bigger deposits.

Basically if you don't have a large amount of cash on hand you need to aim well below your maximum, because there will be a bidding war and you will lose if you can't add a huge amount on over asking.

Things are pretty dire in the UK.

Gavin83

RelievedSheff said:

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. 

It’s the same round here. Most houses sell for over asking and judging by the Land Registry sold prices actually do. Those that don’t either have something wrong with them or were seriously overpriced to start with. Anyone not willing to go over asking price will struggle to find a house. Probably the sort of people on here complaining they can’t find anything.

Crashy_Time said:

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 have lowered the value because there is more economic turmoil ahead IMO.

For once I partially agree with you. While no one can say what’ll happen to house prices (despite what you suggest) I do think lenders/surveyors are being particularly cautious at the moment. Good if you can cope with the down valuation or your vendor is willing to budge, not so good if you can’t.

At the moment it still seems a good sellers market but I think we’re not far off the point that I’d only sell if I really had to. Of course this’ll lead to even less housing stock but that’s a consequence of the process.

BikingBud

RelievedSheff said:

lookstraightahead said:

RelievedSheff said:

lookstraightahead said:

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. 

We have several family members and friends and colleagues who are currently trying to buy property and are all ending in bidding wars with the properties going well over asking price.

One colleague put in an offer £20k over asking price on a £130k ex council house and was beaten too it by someone who offered more. Final selling price £167.5k.

The other halfs father has had to offer £50k over asking to secure the bungalow he wants. 

How do people make up the difference all the time between valuation and what they will pay?
I know it's happening, I just think it's like panic buying. 

In FIL's case he is a cash buyer. So long as he is happy with the price that is all that matters.

As for the others I have no idea. Presumably they have the funds available to make up the difference or the valuers are agreeing with the offer prices. 

So does that presumption remove most if not all first time buyers, who may be living at home to scrape together a deposit or are struggling to divert funds into a deposit fund as the cost to rent is so high?

Some may be fortunate and have assistance but this is where it gets crazy as extra cash pumps up the market, forcing everyone to pay more for the same asset, rather than it being a "realistic" supply and demand equilibrium.

RelievedSheff

BikingBud said:

RelievedSheff said:

lookstraightahead said:

RelievedSheff said:

lookstraightahead said:

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. 

We have several family members and friends and colleagues who are currently trying to buy property and are all ending in bidding wars with the properties going well over asking price.

One colleague put in an offer £20k over asking price on a £130k ex council house and was beaten too it by someone who offered more. Final selling price £167.5k.

The other halfs father has had to offer £50k over asking to secure the bungalow he wants. 

How do people make up the difference all the time between valuation and what they will pay?
I know it's happening, I just think it's like panic buying. 

In FIL's case he is a cash buyer. So long as he is happy with the price that is all that matters.

As for the others I have no idea. Presumably they have the funds available to make up the difference or the valuers are agreeing with the offer prices. 

So does that presumption remove most if not all first time buyers, who may be living at home to scrape together a deposit or are struggling to divert funds into a deposit fund as the cost to rent is so high?

Some may be fortunate and have assistance but this is where it gets crazy as extra cash pumps up the market, forcing everyone to pay more for the same asset, rather than it being a "realistic" supply and demand equilibrium.

Clearly it doesn't remove them or no first time buyer houses would be being sold and the market would stall.

While ever people are able to buy at the bottom end of the market then the money will move up the chain. 

As it stands I personally think people are paying silly money for houses and I can't envisage doing the same myself. We will just sit tight here and watch how the market unfolds in the next few years.  But then again that is part of the problem as well, a lack of properties on the market and then the scramble to buy when something good does come to the market. 

Right now I don't see it as a healthy market but equally I don't see any reason in the next year or so that is going to change.

GDB2222

What may be happening is people moving away from major cities, in the hope that work from home will continue at least several days a week. So, areas like Yorkshire are booming, whilst london is lagging behind. 

The population of Yorkshire is half that of london, so it only takes a small percentage of the london population to migrate to unbalance the local market. 

Hodge58

As the property market is heated at the moment and new build is generally 20k more than second hand it is not unusual for a surveyor to to down value. I dont know your LYV but if its Over 80% then they are covering their !!!!!!, especially if you have had some credit problems.