Down Valuation in Survey Report

lookstraightahead

eidand said:

lookstraightahead said:

eidand said:

This has nothing to do with any principle, it is simply a giant waste of everyone's time and money.

The vendor is well within their rights to send the OP packing and I hope they do, tbh. Next time, think, when you make an offer, don't just throw sums around and then start crying how you don't want to pay the money you yourself offered.

I agree as it's a cash buyer, but if you need a mortgage it can totally change the situation. The morale of the story is to only offer a realistic amount in the first place 

If you need a mortgage, you do the same thing, you use the thing which occupies the space between your ears and realize that if you offer more than the asking price, chances are the banks will agree with the original price and you will have to cover the difference yourself.

In other words, offer what you can afford not a dream amount you dreamt on a hot summer's night. Stop wasting everyone's time basically. The buying process is long and hard enough as it is, there's no need to make it harder.

If you can't afford something, here's a clue, DON'T OFFER IT.

I don't disagree - make your offer realistic. And also the vendor should be realistic about expectations about what their house is 'worth' (including those buyers who might get itchy feet when they have it confirmed that they've made an unrealistic offer).

I'm with you though.

No one is being realistic at the moment. Except the valuers.

TheJP

lookstraightahead said:

eidand said:

lookstraightahead said:

eidand said:

This has nothing to do with any principle, it is simply a giant waste of everyone's time and money.

The vendor is well within their rights to send the OP packing and I hope they do, tbh. Next time, think, when you make an offer, don't just throw sums around and then start crying how you don't want to pay the money you yourself offered.

I agree as it's a cash buyer, but if you need a mortgage it can totally change the situation. The morale of the story is to only offer a realistic amount in the first place 

If you need a mortgage, you do the same thing, you use the thing which occupies the space between your ears and realize that if you offer more than the asking price, chances are the banks will agree with the original price and you will have to cover the difference yourself.

In other words, offer what you can afford not a dream amount you dreamt on a hot summer's night. Stop wasting everyone's time basically. The buying process is long and hard enough as it is, there's no need to make it harder.

If you can't afford something, here's a clue, DON'T OFFER IT.

I don't disagree - make your offer realistic. And also the vendor should be realistic about expectations about what their house is 'worth' (including those buyers who might get itchy feet when they have it confirmed that they've made an unrealistic offer).

I'm with you though.

No one is being realistic at the moment. Except the valuers.

The vendor did and the OP offered £15k more than what its valued. The asking price was £5k above the survey which lets be honest the asking price was about right. This is a classic case of Mr Cash big boy throwing it about and now doesn't want to front up. Don't offer what your not willing to pay.

lookstraightahead

TheJP said:

lookstraightahead said:

eidand said:

lookstraightahead said:

eidand said:

This has nothing to do with any principle, it is simply a giant waste of everyone's time and money.

The vendor is well within their rights to send the OP packing and I hope they do, tbh. Next time, think, when you make an offer, don't just throw sums around and then start crying how you don't want to pay the money you yourself offered.

I agree as it's a cash buyer, but if you need a mortgage it can totally change the situation. The morale of the story is to only offer a realistic amount in the first place 

If you need a mortgage, you do the same thing, you use the thing which occupies the space between your ears and realize that if you offer more than the asking price, chances are the banks will agree with the original price and you will have to cover the difference yourself.

In other words, offer what you can afford not a dream amount you dreamt on a hot summer's night. Stop wasting everyone's time basically. The buying process is long and hard enough as it is, there's no need to make it harder.

If you can't afford something, here's a clue, DON'T OFFER IT.

I don't disagree - make your offer realistic. And also the vendor should be realistic about expectations about what their house is 'worth' (including those buyers who might get itchy feet when they have it confirmed that they've made an unrealistic offer).

I'm with you though.

No one is being realistic at the moment. Except the valuers.

The vendor did and the OP offered £15k more than what its valued. The asking price was £5k above the survey which lets be honest the asking price was about right. This is a classic case of Mr Cash big boy throwing it about and now doesn't want to front up. Don't offer what your not willing to pay.

Yes I know, but either way it doesn't rest easy paying over valuation once it's there in black and white, especially if it's your own money and not the bank's (just makes it seem even more uncomfortable).

There are many thousands who change their minds - how about all of those vendors who accept these over enthusiastic amounts knowing it's more than they expected - it's going to come back and bite them.  Greed on a vendors part contributes to these situations.

Whereas I would personally let it go for this amount, as a buyer I would never worry about offending a vendor, they don't rule the roost and it's a business transaction. And if they told me to do one, I would, no problem.

propertyhunter

Morals and principles aside and agreeing with others saying to stick by your offer, let's think about the market environment and the other offers made for the property. 

Given rising inflation, interest rates and energy costs now hitting in April - how many of those who previously offered would stand by the offers they made earlier this year?

A house in a nearby area where I am has fallen from £925k (overvalued) to £850k (realistic value), and the EA thinking I am still looking for a house says to me the vendor will accept £840k. All of the previous viewers didn't even want it at £840k, and he's calling me and I haven't even viewed it. The market peak has been reached in where I am buying. 

All I'm saying is that the OP could reduce their offer slightly because the competition will likely have a different sentiment too BUT of course depends on the local market. I believe no serious seller in this market is going to pull out of a transaction now, you'd just politely decline and say the original agreed price stands. You have to remember the seller wants to get on with their life. 

lookstraightahead

propertyhunter said:

Morals and principles aside and agreeing with others saying to stick by your offer, let's think about the market environment and the other offers made for the property. 

Given rising inflation, interest rates and energy costs now hitting in April - how many of those who previously offered would stand by the offers they made earlier this year?

A house in a nearby area where I am has fallen from £925k (overvalued) to £850k (realistic value), and the EA thinking I am still looking for a house says to me the vendor will accept £840k. All of the previous viewers didn't even want it at £840k, and he's calling me and I haven't even viewed it. The market peak has been reached in where I am buying. 

All I'm saying is that the OP could reduce their offer slightly because the competition will likely have a different sentiment too BUT of course depends on the local market. I believe no serious seller in this market is going to pull out of a transaction now, you'd just politely decline and say the original agreed price stands. You have to remember the seller wants to get on with their life. 

Great post.

hopefully the days where vendors feel entitled with be corrected. It's very odd to feel you have to keep the vendors sweet it should be the other way round.

owenjt

MobileSaver said:

No, I don't think you've read the whole thread. It wasn't an unexpected down-valuation; the OP knew they were bidding above asking price because they wanted to secure the property when bidding against three other interested parties.

If I was the vendor I'd be furious if the OP tried to renegotiate back to the asking price when the survey has confirmed there are no hidden surprises with the property. I'd be straight on to one of the unsuccessful bidders and wouldn't sell to the OP at any price but maybe that's just me.

Ok so the down-valuation wasn't unexpected but the extent of the down-valuation was. The vendors may be annoyed (furious is a bit OTT) but they can easily say no and then it's up to the OP whether they pay the original offer or pull out.

MobileSaver

lookstraightahead said:

hopefully the days where vendors feel entitled with be corrected. It's very odd to feel you have to keep the vendors sweet it should be the other way round.

Please, please, please can you let me know when you eventually decide to sell your home? I'll be a cash buyer and promise to offer what I believe is a very fair price and I'm sure you won't feel remotely entitled to decline my offer just because you and the EA think it's worth more...

lookstraightahead

MobileSaver said:

lookstraightahead said:

hopefully the days where vendors feel entitled with be corrected. It's very odd to feel you have to keep the vendors sweet it should be the other way round.

Please, please, please can you let me know when you eventually decide to sell your home? I'll be a cash buyer and promise to offer what I believe is a very fair price and I'm sure you won't feel remotely entitled to decline my offer just because you and the EA think it's worth more...

Okey dokey 

Deedoodee

There are a lot of harsh comments on here directed towards the OP. It’s commonly said that a property is only worth what someone is willing to pay for it, so if a buyer changes their mind, doesn’t that by definition change its value? 

A lot of weight also seems to be placed on the EA’s initial valuation/ asking. But I’ve been to viewings (and partaken in placing offers for some) where the EA said the property has been priced low (I assume for marketing/ getting viewings) and the vendor is expecting much higher than asking. Similarly, I’ve offered asking and been told that the vendors are expecting more. 

it’s not so simple to know what a ‘true valuation’ (for the purpose of defining ‘over valuation’ and ‘down valuation’ should be). There’s a lot of overlap. If truly reliable information were provided upon offering, such as a professional’s assessment (like a surveyor), perhaps this would be an entirely different conversation. A vendor who throws a tantrum at the prospect of a negotiation after a professional’s assessment does not sound like a vendor who is serious/ rational about the business transaction of selling.

merrygoroundhk

Deedoodee said:

There are a lot of harsh comments on here directed towards the OP. It’s commonly said that a property is only worth what someone is willing to pay for it, so if a buyer changes their mind, doesn’t that by definition change its value? 

A lot of weight also seems to be placed on the EA’s initial valuation/ asking. But I’ve been to viewings (and partaken in placing offers for some) where the EA said the property has been priced low (I assume for marketing/ getting viewings) and the vendor is expecting much higher than asking. Similarly, I’ve offered asking and been told that the vendors are expecting more. 

it’s not so simple to know what a ‘true valuation’ (for the purpose of defining ‘over valuation’ and ‘down valuation’ should be). There’s a lot of overlap. If truly reliable information were provided upon offering, such as a professional’s assessment (like a surveyor), perhaps this would be an entirely different conversation. A vendor who throws a tantrum at the prospect of a negotiation after a professional’s assessment does not sound like a vendor who is serious/ rational about the business transaction of selling.

Thank you guys for all the honest opinions. I need to know different thoughts from different perspectives, to think more thoroughly.

My experience was quite similar to Deedoodee's. My first offer on the house was 267K-it was 2K over the asking price because I knew other people were interested in the property. But the EA commented that though mine was good, it was not good enough, and a 'Best and Final Offer Phase' was then arranged. Among the four offers on the house, all potential buyers were chain free, and three (including me) were cash buyers.