Gauzamped

itssmallstuff

So, we have been gauzamped, and feel very low just now.

4 weeks since offer was accepted (also chain complete), my offer of 560k which was 10k above the asking guide price, got gauzamped by someone who apparently left a letter via the postbox. They offer 600k.

My mortgage is ready, survey done, luggage packed!
I'm in a very small chain, sold to FTBs and buying a end of chain. 

Mortgage valuation was spot on. 

What is the likelihood that the bank will value the same property +40k in mere 4 weeks? I heard of some kind of central database for valuations...so even if I applied with few other lenders, the valuation might just come out the same?

Would the other buyer with hight offer also face issue with valuation? 

I'm being told the other buyer is FTB, but with only 5% deposit.

I'm thinking to go in again at 575k (so +15k) I've these funds from savings, so no need to borrow more etc.

Any advice?

Slithery

If the lenders valuer personally thinks it's worth a million pounds then they'll still only value it at £600k for the new buyers.
Unless they're going to undervalue it they'll always give the exact offer price as the value, no matter how much more they think it's worth.
A lenders valuer will never give a higher figure than the offer.

MalMonroe

Gazumped? 

So sorry to hear that.

The problem is that the house has been valued. And it was obviously valued at £550k originally.

BUT the people who have offered £600k are willing to pay more than the valuation because they obviously really want the property. The vendors want the highest price and so they don't mind if they let you down - personally I think that gazumping  is a despicable practise.

I don't think it will matter if you offer more than you have done, unless you are prepared to offer more than £600k - more than the house is worth - because £600k is the latest offer they've accepted.

There is no guarantee that the sale with the new buyers at £600k will actually go ahead, in spite of the fact that the offer has been accepted. But the vendors have proved themselves to be very unreliable and greedy and even if that sale falls through, in my opinion it would not be wise to attempt to enter into any further negotiations with them because they could do the same thing again. 

Sadly these things do happen with property purchasing and selling. It's very upsetting (it happened to me once, I was in total despair) and depressing. The knock-on effect is that you have to let your buyers down too when it's not your fault. 

There's not a lot of advice that can be given since there's nothing you can do about this horrible situation. I do sympathise and hope that you will be able to find your new home very soon. I have to say that after it happened to me I ended up in a better property in a quieter area and I hope that something similar will happen to you too. All the very best to you.

itssmallstuff

Slithery said:

If the lenders valuer personally thinks it's worth a million pounds then they'll still only value it at £600k for the new buyers.
Unless they're going to undervalue it they'll always give the exact offer price as the value, no matter how much more they think it's worth.
A lenders valuer will never give a higher figure than the offer.

Have you heard of some kind of central database where valuation figures are stored? This means even if a new mortgage application was made with new lender, there is a high chance of the new lender to value it same as the one before even if the new offer is higher?

Would the new buyer also face similar challenge with lender valuation?

lookstraightahead

I hope it falls through for them op. Greed is a nasty trait.

Snookie12cat

Echo the above. I hope their terrible greedy nature bites them in the behind. Would be some karmic justice.
Keep an eye on Rightmove for it's return 🤞

penners324

Get house hunting.

And to say greed is a nasty trait is naive, greed has pushed the human race on from being cave dwellers to where we are today.

eddddy

itssmallstuff said:

Have you heard of some kind of central database where valuation figures are stored? 

You could be referring to a couple of things.

The mortgage lenders instruct mortgage valuation firms like esurv and Connells to do their valuations. If, for example, your mortgage lender instructed esurv to do a valuation, and the new buyer uses a mortgage lender who also instructs esurv - then esurv won't visit the property again, they will just submit the same valuation.



But also Experian and Rightmove have partnered to build a database of every UK property. They're very secretive about the data they hold - but it supposedly contains "estate agent information, surveyor data and land registry records to provide, up-to-date property valuations and details of property type".

As I say, it's all very secretive - but it's possible that some/all of the valuation firms are subscribing to an Experian service where they get info from the database, and in return, they add their valuations to the database.

(That's the type of business model Experian often use - they sell data to companies, in return for companies giving them more data to add to their databases.)


Some info: https://www.mortgagefinancegazette.com/market-news/experian-launches-database-on-every-uk-home-31-07-2012/

Noneforit999

That really sucks, especially considering how far through the process you are.

As a vendor myself at the moment, I couldn't do that to a buyer if we were that far through the process. Money talks sure but morally that is a disgraceful thing to do as a vendor.

Other than increase your offer and hope for the best, I am not sure there is much else you can do other than pull out. If the other buyer only has a 5% deposit and has offered £40k over what its been valued at already, they may be in for a rude awakening...

MobileSaver

MalMonroe said:

The knock-on effect is that you have to let your buyers down too when it's not your fault.

The OP doesn't have to let their buyers down; they could honour the sale to their buyers and move into rented or with family/friends while they find their new home.

Many years ago my girlfriend and I did exactly this for several months; it wasn't ideal but when needs must...

Flugelhorn

I would suspect that @ 600K with a 5% deposit the valuation may come back lower - maybe the EA will be calling you back at that point