Survey down valued & seller won’t reduce price - next steps?

lookstraightahead

SetantaSuck said:

If you go with a different lender expect a higher interest rate as rates increased yesterday.

The vendor also needs to take this into account

BaileysMam

Thanks everyone. I’ve accepted it’s best to walk away and try to find somewhere else.
Thankfully new properties come up in the area we want fairly regularly. I just hope the next one is valued correctly (by everyone involved!)

Richiem1987

BaileysMam said:

Thanks everyone. I’ve accepted it’s best to walk away and try to find somewhere else.
Thankfully new properties come up in the area we want fairly regularly. I just hope the next one is valued correctly (by everyone involved!)

As a buyer, its good practice to focus on properties where you would be able to cover 20% of the asking price. This give you room when a lender down values a property, giving you 10% wriggle room. Good luck on your search. 

lookstraightahead

Good for you op. Good luck with your search. You coujd always go back and re-offer when or if it doesn't sell.

I wish agents wouldn't hike prices to get business. 

[Deleted User]

diggingdude said:

As no one has said it yet. Why would you want to pay more than what a professional values it at? If you love it or essential then fair enough. If not then don't fall into the trap of fulfilling other people's fantasies 

Except your faith in professional valuations is misplaced.

When my family member remortgaged valuations of 300k and 325k form 2 different surveyors in the space of a couple of weeks.

There is a margin for error even with professional valuations and in this cases I feel 7% is within that.

Furthermore this is another example of a downvaluation not being a golden ticket for a lower offer.

Lastly, supposing OP was in a stronger position such as with 60% LTV. Woupd they walk away? Ops choice is right for them but specific to them too.

user1977

[Deleted User] said:

diggingdude said:

As no one has said it yet. Why would you want to pay more than what a professional values it at? If you love it or essential then fair enough. If not then don't fall into the trap of fulfilling other people's fantasies 

Except your faith in professional valuations is misplaced.

When my family member remortgaged valuations of 300k and 325k form 2 different surveyors in the space of a couple of weeks.

There is a margin for error even with professional valuations and in this cases I feel 7% is within that.

Furthermore this is another example of a downvaluation not being a golden ticket for a lower offer.

Lastly, supposing OP was in a stronger position such as with 60% LTV. Woupd they walk away? Ops choice is right for them but specific to them too.

Plus we don't know the circumstances in which they made the offer in the first place. If it's a competitive (and rising) market then the winning bid is likely to be above conservative valuations based on prices agreed a year or so previously. So the vendor may easily find somebody else willing (and able to afford) to proceed with the same price.

BaileysMam

I think if the vendor had lots of other offers to go back to, I would have understood more their refusal to come down on price. In their position, I think meeting half way would have been more sensible. I will be surprised if they get an offer much higher than ours but I respect that they want to try.

[Deleted User]

BaileysMam said:

I think if the vendor had lots of other offers to go back to, I would have understood more their refusal to come down on price. In their position, I think meeting half way would have been more sensible. I will be surprised if they get an offer much higher than ours but I respect that they want to try.

You can always just wait to see if they change their mind, and meanwhile look for something else.

Sarah1Mitty2

diggingdude said:

As no one has said it yet. Why would you want to pay more than what a professional values it at? If you love it or essential then fair enough. If not then don't fall into the trap of fulfilling other people's fantasies 

Some people just fall in love with certain property I think.

Bendy_House

BaileysMam said:

I think if the vendor had lots of other offers to go back to, I would have understood more their refusal to come down on price. In their position, I think meeting half way would have been more sensible. I will be surprised if they get an offer much higher than ours but I respect that they want to try.

Have you left your offer on the table as you continue to look?

If so, there's a very reasonable chance you may get a phone call back in a week or two.

Keep looking, and the EA will be also be keeping an eye on you! Be absolutely upfront and honest with the EA - you still love the house, would almost certainly still go for it, but not when your lender says it's overvalued, and at the cost of you wiping out all your savings. With interest rates only going one way, you just won't do that. Won't. 

If you have a compromise figure, by all means leave that tentatively sitting there too, but if the EA comes back with a lesser reduction than that, just 'soz - non. Can't and won't'.