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

BaileysMam

Bendy_House said:

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'.

Yes this is exactly what we’ve done. We’ve left an offer on the table.

I’ve now received the formal survey report and it says the down value was due to nearby power lines (they about 150m away), airplane noise (affects the whole estate) and “wear and tear”.

I’m hoping we do get a call as I’m not put off by these things. I’m aware it could affect the future re sale though.

nicmyles

I am endlessly bemused by people's willingness to just accept that a survey value is "the true value" and there are no other facets to the buying process.

A flat I bought was downvalued and we were happy to challenge the valuation (didn't work) and in the end make up some of the difference, because we were confident in the market and that we would make a load of money on it when it came time to sell. Which is what happened.

The mortgage lender (via their surveyor) has one appetite for risk. You have another. Neither are inherently right or wrong.

Clearly you need to listen to what the surveyor has to say and respect their advice and experience, but we are all also capable of forming our own judgements.

BaileysMam

nicmyles said:

I am endlessly bemused by people's willingness to just accept that a survey value is "the true value" and there are no other facets to the buying process.

A flat I bought was downvalued and we were happy to challenge the valuation (didn't work) and in the end make up some of the difference, because we were confident in the market and that we would make a load of money on it when it came time to sell. Which is what happened.

The mortgage lender (via their surveyor) has one appetite for risk. You have another. Neither are inherently right or wrong.

Clearly you need to listen to what the surveyor has to say and respect their advice and experience, but we are all also capable of forming our own judgements.

I agree. I’m unsure whom your comment is directed toward, however I’ll respond as I am the OP.

In our scenario, regardless of the “true” value of the house, I do not think we would be wise to use all our available cash to make up the difference. We *have* formed our own judgement between what we think the house is worth - to us - and what we can sensibly afford. That value happens to be a little bit above the surveyor’s figure.

*edited, spelling 

nicmyles

BaileysMam said:

nicmyles said:

I am endlessly bemused by people's willingness to just accept that a survey value is "the true value" and there are no other facets to the buying process.

A flat I bought was downvalued and we were happy to challenge the valuation (didn't work) and in the end make up some of the difference, because we were confident in the market and that we would make a load of money on it when it came time to sell. Which is what happened.

The mortgage lender (via their surveyor) has one appetite for risk. You have another. Neither are inherently right or wrong.

Clearly you need to listen to what the surveyor has to say and respect their advice and experience, but we are all also capable of forming our own judgements.

I agree. I’m unsure whom your comment is directed toward, however I’ll respond as I am the OP.

In our scenario, regardless of the “true” value of the house, I do not think we would be wise to use all our available cash to make up the difference. We *have* formed our own judgement between what we think the house is worth - to us - and what we can sensibly afford. That value happens to be a little bit above the surveyor’s figure.

*edited, spelling 

Yes, sorry, wasn't directed at you, at various posters making the "what the surveyor says is the one single truth and anyone would be mad to buy at a higher price than the valuation" argument.

fewcloudy

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 

Yeah that would make sense if there was only one enlightened professional that was always correct...

However, in the real world these amazing 'professionals' very often give different values to the same property, and the variation can be tens of thousands of pounds. I kid you not.

I'm on 5th and (hopefully) final house. My respect, trust and belief in the 'professionals' involved in the house buying/selling process has most definitely changed with experience!

lookstraightahead

nicmyles said:

I am endlessly bemused by people's willingness to just accept that a survey value is "the true value" and there are no other facets to the buying process.

A flat I bought was downvalued and we were happy to challenge the valuation (didn't work) and in the end make up some of the difference, because we were confident in the market and that we would make a load of money on it when it came time to sell. Which is what happened.

The mortgage lender (via their surveyor) has one appetite for risk. You have another. Neither are inherently right or wrong.

Clearly you need to listen to what the surveyor has to say and respect their advice and experience, but we are all also capable of forming our own judgements.

I don't disagree with this sentiment. However you do have to factor in the market conditions and that's what a lender does. So not everyone makes a load of money and I think we are at that position now, market wise. I felt confident years ago and then sold in negative equity, so market conditions are really important to me and I buy with my head.

nicknameless

We were sort of in a similar position OP, but with more headroom in terms of finances.  Our lender's valuation was £18k below our offer on a property we hope to complete on next week.  We had the cash to make up the difference and have not seen a property comparable come to market since for our needs.  We didn't even ask the question of the vendor - some will see this as naive but we want the house and aren't put off by a valuation that could have been different if done by a different surveyor on the same day.  I've just done the sums and were we to mortgage at current rates on the 'downvalued' figure of our property we would be £11k in the red vs the deal we secured originally.

Some of the comments in the thread about valuations and 'true value' are myopic and ignore the subjectivity in this whole process.

Hope the vendors come back to you.  Sounds to me like you weren't really in love with this - but very difficult to tell from written accounts on a forum.

It's not all about sticker price if you can afford it.  It's a bit like my niece telling me how the dealer gave her £3k off her new car when I know that the finance rate she's agreed to is more than making up that difference.

nicmyles

lookstraightahead said:

nicmyles said:

I am endlessly bemused by people's willingness to just accept that a survey value is "the true value" and there are no other facets to the buying process.

A flat I bought was downvalued and we were happy to challenge the valuation (didn't work) and in the end make up some of the difference, because we were confident in the market and that we would make a load of money on it when it came time to sell. Which is what happened.

The mortgage lender (via their surveyor) has one appetite for risk. You have another. Neither are inherently right or wrong.

Clearly you need to listen to what the surveyor has to say and respect their advice and experience, but we are all also capable of forming our own judgements.

I don't disagree with this sentiment. However you do have to factor in the market conditions and that's what a lender does. So not everyone makes a load of money and I think we are at that position now, market wise. I felt confident years ago and then sold in negative equity, so market conditions are really important to me and I buy with my head.

Oh, I completely agree. I just disagree with a blanket "that's what it's worth and you should never ever pay more than that" approach, which some people repeatedly advocate on this forum.

MEM62

diggingdude said:

As no one has said it yet. Why would you want to pay more than what a professional values it at? 

Because they are not always right.  

TXC

Your next steps are unfortunately very simple

• Stump up the delta between valuation and your offer.
• Walk away

Do not pin any hopes on the seller changing their mind if they will not move on their stance. You need to move on and forget it because the right house is out there.

As others have said - you really shouldnt want to be paying any more than surveyor valuation at the moment (whether you agree with it or not, thats the valuation opinion that matters unless youre a cash buyer) as youll open yourself up to a lot of pain unless you plan to never, ever sell.

Some sellers are still being very bloody minded at the moment despite rocketing interest rates and cost of living squeeze - I had a valuation come in significantly under my offer on a house when househunting (some may remember on here) - that house and seller have since had five consecutive sales fall through after me and has now been on the market close to a year with not so much as a pounds movement in asking price.