Second Down valuation on house I’m selling

Sarah1Mitty2

[Deleted User] said:

mi-key said:

Gavin83 said:

Sarah1Mitty2 said:

Gavin83 said:

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.

Without an actual sale it is just guesswork though, a lender`s valuation will be much more picky, I think a house purchased in 2021 is more likely to be looking at selling for 15% less now not more, unless it is very unique or in an exceptional area.

I agree that without a sale it’s all guesswork. We aren’t selling though so this is the best we’ll get.

However this is a lenders valuation. The reason it’s been valued is for a re-mortgage. We paid £430k for it in 2021 (a valuation that the lender agreed with, although we could have underpaid) and they’ve said it’s now worth £480k.

If we sold we might well get a bit less than that but there’s no way it would go for 15% less than what we paid.

Lenders valuations are often below market value as well as they are more conservative. If you were selling, you would probably get more than £480K for it now.

Once again Crashy showing they have no idea what is really going on in the market !

Lender price at what they think the market rate is. You might find a buyer who really wants it, or just has money to burn, who is willing to pay over the odds.

Less likely on a FTB type property?

Sarah1Mitty2

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! 

Have you decided what to do?

Sarah1Mitty2

Any progress OP?