We've been down-valued by more than anyone expected. What can we do?

newsgroupmonkey_

Noneforit999 said:

We have just accepted an offer which was £30k above the 'offers over' price.

They have a 15% deposit and are remortgaging their current home with a BTL mortgage and taking £80k of equity out of it for the deposit and other fees etc.

EA made it clear it could be down valued but he said looking at other recent sales around us, he could dispute the valuation for us if it went down more than £15k below what the buyers offered. 

Now the 10000 solicitor forms and the waiting game, 

They can dispute it all they like. Won't make a jot of difference - would be like arguing with a football referee. It's not the Estate Agent that instructed the surveyor, it's the lender.
Lenders are rightly very jittery at the moment.

Typical post valuation queries that would get looked at again would be if the surveyor missed a room or failed to see the garden or something.

Valuation is done a lot using local comparisons on SOLD prices (not for sale). If similar properties have sold at £30k under the offered price, then the surveyor won't value yours at that price.

lookstraightahead

Noneforit999 said:

We have just accepted an offer which was £30k above the 'offers over' price.

They have a 15% deposit and are remortgaging their current home with a BTL mortgage and taking £80k of equity out of it for the deposit and other fees etc.

EA made it clear it could be down valued but he said looking at other recent sales around us, he could dispute the valuation for us if it went down more than £15k below what the buyers offered. 

Now the 10000 solicitor forms and the waiting game, 

Good luck with that. The EA can dispute what they want but the lender can do what they like, you can't make a lender lend money. And with such a high LTV the buyer will struggle to make up the shortfall even if they are potentially willing to pay more than what it's worth.

Personally I would be deciding my next step (buying onwards etc) on the original valuation, so that you can reduce if necessary.

HotPantsCruiser

newsgroupmonkey_ said:

Noneforit999 said:

We have just accepted an offer which was £30k above the 'offers over' price.

They have a 15% deposit and are remortgaging their current home with a BTL mortgage and taking £80k of equity out of it for the deposit and other fees etc.

EA made it clear it could be down valued but he said looking at other recent sales around us, he could dispute the valuation for us if it went down more than £15k below what the buyers offered. 

Now the 10000 solicitor forms and the waiting game, 

They can dispute it all they like. Won't make a jot of difference - would be like arguing with a football referee. It's not the Estate Agent that instructed the surveyor, it's the lender.
Lenders are rightly very jittery at the moment.

Typical post valuation queries that would get looked at again would be if the surveyor missed a room or failed to see the garden or something.

Valuation is done a lot using local comparisons on SOLD prices (not for sale). If similar properties have sold at £30k under the offered price, then the surveyor won't value yours at that price.

Good way of putting it!

grumiofoundation

newsgroupmonkey_ said:

Noneforit999 said:

We have just accepted an offer which was £30k above the 'offers over' price.

They have a 15% deposit and are remortgaging their current home with a BTL mortgage and taking £80k of equity out of it for the deposit and other fees etc.

EA made it clear it could be down valued but he said looking at other recent sales around us, he could dispute the valuation for us if it went down more than £15k below what the buyers offered. 

Now the 10000 solicitor forms and the waiting game, 

They can dispute it all they like. Won't make a jot of difference - would be like arguing with a football referee. It's not the Estate Agent that instructed the surveyor, it's the lender.
Lenders are rightly very jittery at the moment.

Typical post valuation queries that would get looked at again would be if the surveyor missed a room or failed to see the garden or something.

Valuation is done a lot using local comparisons on SOLD prices (not for sale). If similar properties have sold at £30k under the offered price, then the surveyor won't value yours at that price.

Could always ask for a reVARluation?

HotPantsCruiser

I don`t get the reference?

newsgroupmonkey_

HotPantsCruiser said:

I don`t get the reference?

VAR - where the referee asks the video panel to reassess.

But again, my point about refereeing still stands. If a player on the pitch asks VAR to have another look, the referee will laugh in their face.

HotPantsCruiser

newsgroupmonkey_ said:

HotPantsCruiser said:

I don`t get the reference?

VAR - where the referee asks the video panel to reassess.

But again, my point about refereeing still stands. If a player on the pitch asks VAR to have another look, the referee will laugh in their face.

OK I get it, good way of putting it, but the bank would likely be more polite with a buyer who had offered too much?

KDuffy

TheJP said:

Any chance @KDuffy updating the thread? The suspense is agonising. 

haha sorry all I had absolutely no idea this post had travelled as far as it did! I was wrapped in a world of negotiating and whatnot so as soon as we found a solution I was quite happy to take a break from it all.

Anyway what ended up happening with us: We managed to have our buyers use an extra £5k cash out of their furniture budget, and reduced our forward house sellers by £5k. I figured it was a £10k solution altogether- but unfortunately this wasn't the case.

The extra 5k from our future house then brought our proposed deposit up by 1%, (from 85% to 86%) taking us out of the bank's threshold and upping the interest. That extra monthly cost adds up to about £1k over the 2 yr contract. So in summary, we managed to get an extra +£9k out of the sale, a far cry from the +26k we had been offered originally but not the worst considering our original valuation.

GDB2222

So, to summarise:

Buyers offered £196k, but you eventually settled for £175k. 

You'd never have accepted an offer of £175k originally, so the buyers definitely did really, really well. An absolute blinder for them.

TXC

GDB2222 said:

So, to summarise:

Buyers offered £196k, but you eventually settled for £175k. 

You'd never have accepted an offer of £175k originally, so the buyers definitely did really, really well. An absolute blinder for them.

Not half - especially considering half the 5k from the furniture budget likely came from the saving on their deposit (assuming 10% so 19.6k - 17k). So only a 2.4k true additional contribution from them really!