Sale fell through, reasonable to ask to lower accepted offer?

badger09

mi-key said:

Sarah1Mitty2 said:

tsears said:

I have formally accepted the asking price offer from the cash buyer, as like some of you said you run the risk of the lender down-valuing the property, and although I could say it's up to them to find the cash, if they don't have it available then I'm in the same situation, so figured the safest bet would be with the cash buyer

The cash buyer will also be having a valuation done though?

A lot of cash buyers don't get a survey done. And even if they do  it is far less likely the surveyor will downvalue the house as it isn't being used as security for a mortgage. The surveyor will ask how much they are paying, and unless the value is massively off will say its ok.

They buyer can also ignore the valuation as they have already decided the house is worth what they have offered subject to no problems on the survey.

BIB
Absolutely correct. We were cash buyers early in 2021. Had a level 2 survey done & as part of the instruction, Surveyor asked what agreed purchase price was. 

Survey didn’t throw up anything we didn’t already know (1970s extended bungalow built by reputable local builder for himself) and survey comment on valuation was along the lines of “x represents a reasonable purchase at the agreed purchase price”

Family member, also cash purchaser December 2022. Level 3 survey on Victorian Terrace. Survey comment was very similar, though in a telephone call he said it was a good house & would be a shame to lose it at the agreed price (7% below asking in Sept 2022)

I’m sure that in both cases, had surveyor thought we were overpaying by some margin, he would have said so. 

Sarah1Mitty2

badger09 said:

mi-key said:

Sarah1Mitty2 said:

tsears said:

I have formally accepted the asking price offer from the cash buyer, as like some of you said you run the risk of the lender down-valuing the property, and although I could say it's up to them to find the cash, if they don't have it available then I'm in the same situation, so figured the safest bet would be with the cash buyer

The cash buyer will also be having a valuation done though?

A lot of cash buyers don't get a survey done. And even if they do  it is far less likely the surveyor will downvalue the house as it isn't being used as security for a mortgage. The surveyor will ask how much they are paying, and unless the value is massively off will say its ok.

They buyer can also ignore the valuation as they have already decided the house is worth what they have offered subject to no problems on the survey.

BIB
Absolutely correct. We were cash buyers early in 2021. Had a level 2 survey done & as part of the instruction, Surveyor asked what agreed purchase price was. 

Survey didn’t throw up anything we didn’t already know (1970s extended bungalow built by reputable local builder for himself) and survey comment on valuation was along the lines of “x represents a reasonable purchase at the agreed purchase price”

Family member, also cash purchaser December 2022. Level 3 survey on Victorian Terrace. Survey comment was very similar, though in a telephone call he said it was a good house & would be a shame to lose it at the agreed price (7% below asking in Sept 2022)

I’m sure that in both cases, had surveyor thought we were overpaying by some margin, he would have said so. 

Totally different market now, the banks are being ultra cautious and that means surveyors will be as well.