Second Down valuation on house I’m selling

Fbuyer1234

Hi Everyone! 

I could really do with some help

i bought my first home two years ago & now selling it to buy with my partner. 

I sold my house for £110,000 a in Jan however the buyer pulled out due to the mortgage valuation. 

My house has had a tonne of interest so found another buyer straight away who offered asking price right off the bat. 

I have the valuation booked in for next week however I’m increasingly anxious it’s going to be down valued yet again. 

I don’t know by how much it was down valued with my first buyer, however I know when I bought it, it was down valued by £5k but I could still get my mortgage so went ahead. However I bought my house for £89,000 so a lot lower than what I’m now selling for! 

I have put it on the market for what multiple EA valued it at aswell as doing my own research. 

It is a one bed terrace/ small square footage but needs no work doing at all / has a garden etc. 

My question is, what do I do if it’s down valued again? 

Do I pre empt this with my EA & have them follow up with the buyer to say I’m open to negotiation? I would rather than then the sale fall through again. 

I could rent it out but I need the money from the sale for my deposit at the next house. 

I feel completely stuck and panicked I made a massive mistake buying this house. 

Please help! 

RelievedSheff

There is absolutely no point in worrying about something that you have no control over.

The house obviously isn't over priced or you wouldn't be getting the amount of interest that you are.

You just need to find a buyer who isn't reliant on such fine margins that a down valuation scuppers the sale.

You bought the house. There will be someone else in the same situation as you were when you bought.

Sarah1Mitty2

RelievedSheff said:

There is absolutely no point in worrying about something that you have no control over.

The house obviously isn't over priced or you wouldn't be getting the amount of interest that you are.

You just need to find a buyer who isn't reliant on such fine margins that a down valuation scuppers the sale.

You bought the house. There will be someone else in the same situation as you were when you bought.

Unlikely if they are buying with a mortgage, lending conditions have changed completely, anyone who bought in the last few years should be prepared for a valuation that says the house is worth less than they paid.

Fbuyer1234

Sarah1Mitty2 said:

RelievedSheff said:

There is absolutely no point in worrying about something that you have no control over.

The house obviously isn't over priced or you wouldn't be getting the amount of interest that you are.

You just need to find a buyer who isn't reliant on such fine margins that a down valuation scuppers the sale.

You bought the house. There will be someone else in the same situation as you were when you bought.

Unlikely if they are buying with a mortgage, lending conditions have changed completely, anyone who bought in the last few years should be prepared for a valuation that says the house is worth less than they paid.

I haven’t heard this as a general consensus? Is this really the case? 

ManuelG

A mortgage valuation does seem rather an arbitrary thing. Mine's come back lower than most of the estate agents said, I got plenty of viewings, and an acceptable offer within a week and a half of listing (and it wasn't the only offer either) so I don't quite understand why the valuation came back lower.

But... thankfully we've reached a compromise(!) I *could* re-list of course, as the demand's clearly out there, but then we're up- down all the time, and who wants that?

Sarah1Mitty2

Fbuyer1234 said:

Sarah1Mitty2 said:

RelievedSheff said:

There is absolutely no point in worrying about something that you have no control over.

The house obviously isn't over priced or you wouldn't be getting the amount of interest that you are.

You just need to find a buyer who isn't reliant on such fine margins that a down valuation scuppers the sale.

You bought the house. There will be someone else in the same situation as you were when you bought.

Unlikely if they are buying with a mortgage, lending conditions have changed completely, anyone who bought in the last few years should be prepared for a valuation that says the house is worth less than they paid.

I haven’t heard this as a general consensus? Is this really the case? 

The last time UK base rate was higher than now was 2008, when people can`t borrow so much prices come down, I am sure you know all this though?

ReadingTim

Sarah1Mitty2 said:

Unlikely if they are buying with a mortgage, lending conditions have changed completely, anyone who bought in the last few years should be prepared for a valuation that says the house is worth less than they paid

This news seems new to the Halifax, but what do they know - it's not like the lend the money which affects the prices or anything.  Oh, hang on a minute.... 

Gavin83

Fbuyer1234 said:

Sarah1Mitty2 said:

RelievedSheff said:

There is absolutely no point in worrying about something that you have no control over.

The house obviously isn't over priced or you wouldn't be getting the amount of interest that you are.

You just need to find a buyer who isn't reliant on such fine margins that a down valuation scuppers the sale.

You bought the house. There will be someone else in the same situation as you were when you bought.

Unlikely if they are buying with a mortgage, lending conditions have changed completely, anyone who bought in the last few years should be prepared for a valuation that says the house is worth less than they paid.

I haven’t heard this as a general consensus? Is this really the case? 

Not really, no. It's far more complicated than that and will depend on when you bought, the area you live in and the type of house. If you bought at the very peak it might be worth a bit less now but you're probably talking a few %. We bought our house in 2021 and it's now worth about 15% more than we paid.

Mortgage companies will be a little conservative in what they'll lend at the moment. If you go for a cash buyer or someone with a sizeable deposit you could potentially avoid some of these issues. You're far more likely to get a down valuation from someone who's borrowing up to their necks.

fackers_2

ReadingTim said:

Sarah1Mitty2 said:

The last time UK base rate was higher than now was 2008, when people can`t borrow so much prices come down, I am sure you know all this though?

This news seems new to the Halifax, but what do they know - it's not like the lend the money which affects the prices or anything.  Oh, hang on a minute.... 

if I remember rightly. This slight blip was identical just as when the 2008 crash then happened.  Take a look at the data  

Now I’m not a betting person but I’m sure I wouldn’t want to put money on a Turkey telling me Christmas was cancelled this year. It’s in their sole interest to borrow more especially at these rates! 

kingstreet

Sarah1Mitty2 said:

Fbuyer1234 said:

Sarah1Mitty2 said:

RelievedSheff said:

There is absolutely no point in worrying about something that you have no control over.

The house obviously isn't over priced or you wouldn't be getting the amount of interest that you are.

You just need to find a buyer who isn't reliant on such fine margins that a down valuation scuppers the sale.

You bought the house. There will be someone else in the same situation as you were when you bought.

Unlikely if they are buying with a mortgage, lending conditions have changed completely, anyone who bought in the last few years should be prepared for a valuation that says the house is worth less than they paid.

I haven’t heard this as a general consensus? Is this really the case? 

The last time UK base rate was higher than now was 2008, when people can`t borrow so much prices come down, I am sure you know all this though?

We're certainly not seeing that yet.

Sarah1Mitty2

Gavin83 said:

Fbuyer1234 said:

Sarah1Mitty2 said:

RelievedSheff said:

There is absolutely no point in worrying about something that you have no control over.

The house obviously isn't over priced or you wouldn't be getting the amount of interest that you are.

You just need to find a buyer who isn't reliant on such fine margins that a down valuation scuppers the sale.

You bought the house. There will be someone else in the same situation as you were when you bought.

Unlikely if they are buying with a mortgage, lending conditions have changed completely, anyone who bought in the last few years should be prepared for a valuation that says the house is worth less than they paid.

I haven’t heard this as a general consensus? Is this really the case? 

Not really, no. It's far more complicated than that and will depend on when you bought, the area you live in and the type of house. If you bought at the very peak it might be worth a bit less now but you're probably talking a few %. We bought our house in 2021 and it's now worth about 15% more than we paid.

Mortgage companies will be a little conservative in what they'll lend at the moment. If you go for a cash buyer or someone with a sizeable deposit you could potentially avoid some of these issues. You're far more likely to get a down valuation from someone who's borrowing up to their necks.

Why did you sell so soon after buying?