Second Down valuation on house I’m selling

ReadingTim

fackers_2 said:

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! 

You might want to refresh your memory as to the extent to which 2008 was a crash, or merely a slight blip, as I fear you've got the 2 mixed up.  

The fabled crash is the Christmas that the house price crash turkeys have had cancelled for the last 30-odd years.  

Fbuyer1234

ManuelG said:

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?

Thank you , as I said I’m more than happy to negotiate. I just hope the buyer is aswell 

mi-key

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? 

No, it is complete rubbish, Crashy has been predicting a huge house price crash ( 50% ) for years now hoping it will come true so they can afford to buy somewhere. They troll every post on here about prices telling sellers their houses are worth nothing and nobody can afford to borrow money anymore

mi-key

Fbuyer1234 said:

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! 

A down valuing only makes a difference if the buyer is stretching to afford it and they can only afford the minimum deposit. For someone buying with a larger deposit, it doesn't make any difference to them ( for example if someone was buying your house with a £50K deposit, and the lenders value it as being worth £100K instead of £110K then as they are only borrowing £60K, the mortgage lender is more than covered ).

I would put it back on at the original price, but ask the agent to check what sort of deposit any potential buyers have first and reject any that don't have a large enough deposit to cover any down valuing

Gavin83

Sarah1Mitty2 said:

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?

We’re not selling but it has recently been revalued.

YoungBlueEyes

OP wait and see what happens next week, no point worrying about something that may not happen. And as for your first buyer - it may not have been the house that was downvalued, it may have been them themselves that weren't worth the risk rather than your house.

Also, don't be too quick to say you're open to negotiation. If I was buying a house and the seller said that to me, I'd be knocking big lumps of the price depending how desperate you sounded/how much I could get away with. A good EA will smooth it all through from both sides and make sure everyone is happy. 

See what next week brings first.

caprikid1

mi-key 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? 

No, it is complete rubbish, Crashy has been predicting a huge house price crash ( 50% ) for years now hoping it will come true so they can afford to buy somewhere. They troll every post on here about prices telling sellers their houses are worth nothing and nobody can afford to borrow money anymore

Sorry but Crashy has correctly predicted the last two house price drops 48 times.

newsgroupmonkey_

caprikid1 said:

mi-key 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? 

No, it is complete rubbish, Crashy has been predicting a huge house price crash ( 50% ) for years now hoping it will come true so they can afford to buy somewhere. They troll every post on here about prices telling sellers their houses are worth nothing and nobody can afford to borrow money anymore

Sorry but Crashy has correctly predicted the last two house price drops 48 times.

Over a 20 year period too.

RelievedSheff

caprikid1 said:

mi-key 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? 

No, it is complete rubbish, Crashy has been predicting a huge house price crash ( 50% ) for years now hoping it will come true so they can afford to buy somewhere. They troll every post on here about prices telling sellers their houses are worth nothing and nobody can afford to borrow money anymore

Sorry but Crashy has correctly predicted the last two house price drops 48 times.

Even a stopped clock is right twice a day!

Sunsaru

caprikid1 said:

mi-key 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? 

No, it is complete rubbish, Crashy has been predicting a huge house price crash ( 50% ) for years now hoping it will come true so they can afford to buy somewhere. They troll every post on here about prices telling sellers their houses are worth nothing and nobody can afford to borrow money anymore

Sorry but Crashy has correctly predicted the last two house price drops 48 times.

newsgroupmonkey_ said:

caprikid1 said:

mi-key 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? 

No, it is complete rubbish, Crashy has been predicting a huge house price crash ( 50% ) for years now hoping it will come true so they can afford to buy somewhere. They troll every post on here about prices telling sellers their houses are worth nothing and nobody can afford to borrow money anymore

Sorry but Crashy has correctly predicted the last two house price drops 48 times.

Over a 20 year period too.

It's actually 51 times over 15 years

(source: doyourownresearch.com)