Mortgage Devalued? Advice?

iSolaced

Hi there. This sub has been incredibly helpful in the past and thought I’d reach out for your collective wisdom as I’m a FTB🙏.

I made an offer awhile back on a property I fell in love with. The asking price was £450K but after some negotiating back and forth we landed at £420K. I did a Home Buyers Survey and Valuation which came back at £420K and felt confident about where we ended up.

The lender came back with a valuation of £400K and I’m not sure what to do on my side. I’m feeling the drop in price from £450K to £400K might be quite steep for the seller, but wondering if anyone has any advice on what to do?

dunstonh

Its time to play poker.   

You want the house.  They want to sell it. They will have a floor they will accept but you dont know it.  You need to decide if you want to put up the extra money needed or try for a lower offer.    You don't know their reaction and nobody here will have a clue.

You probably need to give it a try.

iSolaced

dunstonh said:

Its time to play poker.   

You want the house.  They want to sell it. They will have a floor they will accept but you dont know it.  You need to decide if you want to put up the extra money needed or try for a lower offer.    You don't know their reaction and nobody here will have a clue.

You probably need to give it a try.

Thanks! Would you have any tips or things to watch out for when negotiating? First time doing this

400ixl

What is the issue? You now believe you are paying too much, or the shift in what they will lend vs the deposit you have now makes it unaffordable to you?

What was you deposit making your loan to value before and after?

iSolaced

400ixl said:

What is the issue? You now believe you are paying too much, or the shift in what they will lend vs the deposit you have now makes it unaffordable to you?

What was you deposit making your loan to value before and after?

I think it’s a few things: the value is the value and feel uncomfortable given by how much is was devalued, would’ve been slightly more comfortable if it was £10K vs £20K.

also if it’s the new LTV of 90% wouldn’t be as comfortable with the monthly repayments vs where they were originally.

[Deleted User]

At the end if the day it’s the bank that most of the  money to buy a house comes from , if they value it at 400k then that’s the value. This is not you putting that price on it , it’s the bank and it’s not uncommon . You need to at least place this with the owner and gage their thoughts on that price . 

user1977

Remember valuation isn't an exact science - £400k and £420k are still in the same ballpark - split the difference and it's £410k +/- 2.4%, which is well within the normal margin of error.