house price valuation dropped by 50k within a few weeks

Sanofian

Hi all,

So, we had a sale price agreed, valuation was met, all progressing nicely.

Our buyer then changed provider and their initial "on-line" valuation came in 50k under previous probably due to recent interest rate hikes and general nervousness in the market. 

Where to go from here?

TiA

housebuyer143

Sanofian said:

Hi all,

So, we had a sale price agreed, valuation was met, all progressing nicely.

Our buyer then changed provider and their initial "on-line" valuation came in 50k under previous probably due to recent interest rate hikes and general nervousness in the market. 

Where to go from here?

TiA

You can request the buyer get a physical valuation with the mortgage company. Sometimes the online ones are vastly incorrect especially if you have done large improvements to the property.

Sarah1Mitty2

Sanofian said:

Hi all,

So, we had a sale price agreed, valuation was met, all progressing nicely.

Our buyer then changed provider and their initial "on-line" valuation came in 50k under previous probably due to recent interest rate hikes and general nervousness in the market. 

Where to go from here?

TiA

What does your buyer want to do?

billy2shots

Sarah1Mitty2 said:

Sanofian said:

Hi all,

So, we had a sale price agreed, valuation was met, all progressing nicely.

Our buyer then changed provider and their initial "on-line" valuation came in 50k under previous probably due to recent interest rate hikes and general nervousness in the market. 

Where to go from here?

TiA

What does your buyer want to do?

As CrashyTime points out. 

The ball is in the buyers court. 

lookstraightahead

What is it you want to achieve? 

RM_2013

What do you and your buyer want to do?

Your buyer could appeal against the value but may not have any success, the buyer could approach a different lender and hope that they use a different surveyor and hope that they give a higher value.  They may have funds to deal with the downvalue or they could offer you a lower price.  You don’t have to accept a lower offer but you if they can’t afford the difference and can’t get the mortgage value they need they may have to pull out of the deal anyway.

Or is there a halfway figure that can be agreed on?

Its a frustrating system and I can see more caution from lenders 

sidneyvic

Depending on house, its probably about right, we've just gone off the edge of the cliff, only question now is how far before we hot the bottom.

[Deleted User]

Houses were overvalued and interest rates are making mortgages a lot more expensive. 50k isn't unreasonable.

silvercar

Is it reasonable? 50K on a property valued at 100k is more of an impact than 50k on a £1m property. Valuation is an art not a science. A property is worth what someone is prepared to pay. If the buyers are having a high LTV mortgage, then the lender may be more cautious, the valuer may be more cautious too - the question of whether the mortgage will always be covered by the property value is more crucial on a high LTV mortgage, on a low LTV mortgage, the lender isn't going to be so bothered on its exact valuation.

movilogo

As a seller, you only have 2 options.

1. Accept lower valuation and proceed
2. Reject lower offer and continue to market.

Your action depends on what confidence you have on your property's achievable selling price. 

caprikid1

"Depending on house, its probably about right, we've just gone off the edge of the cliff, only question now is how far before we hot the bottom."

Are you crashy by another name ? Any evidence to support this with reduction in land registry Sale prices ?