My Buyers Lender has down valued my house

secla

Seems to be a common occurrence at the moment, first time buyers offering over asking and then wondering why they get a down valuation. Hopefully the market cools as it’s a catch22 as People are offering over just to secure properties when they don’t have the funds to back it up

Sarah1Mitty2

People can`t be expected to do valuations themselves, they are just trying to match or beat other bids to get a house they like.

london21

By how much has the property been down valued?

The bank will not lend more than what they think it's worth unless your buyer has the cash to add to meet the amount or tries a different lender but with changes in interest rates doubt, they will want to do that.

Another buyer might fall into the same problem so better to come to a fair agreement. 

[Deleted User]

lookstraightahead said:

[Deleted User] said:

The lenders valuation, with its margin for error, and tending towards risk averse, is not beyond question. 

Your estate agent valued the property at an asking price and amongst a few bidders one bid slightly more than asking.

Personally I should be reluctant to let them make a show of the lenders valuation as a device to renegotiate.

They have knocked out the competition based on their higher bid, now honour it. They bid more than the estate agent valuation by choice.

And obviously that clause does not preclude you from rejecting bids.

This is why, unless you have a large deposit, you should never get into a bidding war.

They probably can't honour it, or they may be shocked by what the lender will risk.

I too would always keep my word, but then I would never promote a bidding war as a seller, or entertain it as a buyer.

Well said. I think this speaks to the fact that when you are evaluating bids, you will ideally know what lies behind them. The highest bid, from someone stretching themselves might we vulnerable to down valuation later in the process.

trix-a-belle

Hang on have you missed a bit out of the details? Its been undervalued by their lender but you don't say that they have reduced their offer or even given a warning shot that they are going to.

If they haven't reduced their offer or indicated they are going to for the time being its their problem, if they have then you can quite easily say no, you had other offers which you might be able to go back to.