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Seller reject survey valuation?
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Ah ok, well yes, offers are normally subject to survey anyway. If you haven't had it downvalued, then worry about it if and when it happens. It's quite possible the lender and surveyor say everything is fine and it's worth the money.fackers_2 said:
Offer subject to survey. It would be foolish IMO to take a house as face value without a trained professionals advice on what is needed that would definitely be missed by someone who has no clue of electrics, brick work etc.mi-key said:Assuming you are talking about a mortgage lenders valuation, and not a building survey that has found some problem with the house?
How much less than your offer was the valuation? If it is a small amount the seller may be willing to negotiate, if its a lot then they may not.
From the sellers point of view, you made an offer for what you thought the house was worth and they accepted it.
It doesn't really mean much to them that your mortgage lender valued it less as this isn't uncommon, and in that case it is your job to find the extra money to make up the difference if you want to buy.
If they accepted an offer from someone else, their lender may value it fine, or the buyer may not be stretching themselves so can afford to cover any difference easily.Generalising and anticipation from me at the moment. No lower valuation but it seems likely.
Why do you think it is likely? Even if the lender does downvalue, it may only be by a few thousand so needn't put you off buying if you want the house.
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It's not particularly greedy. Lets say the house was on for £250K, fackers offered £240K which was accepted, but his mortgage lender says it is only worth £230K ( assuming the building survey doesn't throw up any major problems with the house ).In terms of what the vendor would do if you walk away there is no 'typical' answer. A realistic one might reduce and re-list. A greedy one might just keep listing at the same price as that is what they think 'it is worth'.
He can't afford to make up the difference, so pulls out and the seller relists at £250K again
The house was still worth £240K to fackers as that is what he felt it was worth, and had the lender said 'yes thats fine' he would have gone ahead and bought it.
The next buyer comes along and offers £240K as that is what it is worth to him. His lender says it is worth that, so he buys it. Or his lender also says it is worth £230K, but as he has a £100K deposit, then it makes no difference to him that the lender will only lend £130K instead of £140K
Lenders only care about covering themselves if the buyer doesnt pay the mortgage and they have to repossess. Lending £130K on a house they think is worth £230K is no risk for them.
Just because a lender says the house is worth £230K as security, that doesn't mean that is actually what it is worth to buyers, or that is what the seller should reduce his price to to be 'realistic'
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Just a hunch as the seller has been incredibly difficult to deal with during negotiation... Makes me think they could be difficult should something crop up. Mortgage advisor has also told me that several homes he's arranged mortgages for have all been reduced by 2-4% via the lender valuation. Don't want to go 7 or so weeks then find out they crash the sale.mi-key said:
Ah ok, well yes, offers are normally subject to survey anyway. If you haven't had it downvalued, then worry about it if and when it happens. It's quite possible the lender and surveyor say everything is fine and it's worth the money.fackers_2 said:
Offer subject to survey. It would be foolish IMO to take a house as face value without a trained professionals advice on what is needed that would definitely be missed by someone who has no clue of electrics, brick work etc.mi-key said:Assuming you are talking about a mortgage lenders valuation, and not a building survey that has found some problem with the house?
How much less than your offer was the valuation? If it is a small amount the seller may be willing to negotiate, if its a lot then they may not.
From the sellers point of view, you made an offer for what you thought the house was worth and they accepted it.
It doesn't really mean much to them that your mortgage lender valued it less as this isn't uncommon, and in that case it is your job to find the extra money to make up the difference if you want to buy.
If they accepted an offer from someone else, their lender may value it fine, or the buyer may not be stretching themselves so can afford to cover any difference easily.Generalising and anticipation from me at the moment. No lower valuation but it seems likely.
Why do you think it is likely? Even if the lender does downvalue, it may only be by a few thousand so needn't put you off buying if you want the house.
IMO with a touch of emotional bias, I would take the offer as its the only offer and get the money! Mainstream news now sharing market has fallen for 7 months in a row, surely this should give a nudge to people to think twice about holding out for the dream cash buyer and offers over. Will keep this threat updated.Always find comparables. You can ask, but you won’t always get what you want.
House prices are now falling as they were in 2008… A correction is happening - Jan 20230 -
A reduction of 2% is nothing, nor is 4% really. It's not like they are saying it is a huge amount you would need to find, if it even comes to that.
Just a hunch as the seller has been incredibly difficult to deal with during negotiation... Makes me think they could be difficult should something crop up. Mortgage advisor has also told me that several homes he's arranged mortgages for have all been reduced by 2-4% via the lender valuation. Don't want to go 7 or so weeks then find out they crash the sale.
IMO with a touch of emotional bias, I would take the offer as its the only offer and get the money! Mainstream news now sharing market has fallen for 7 months in a row, surely this should give a nudge to people to think twice about holding out for the dream cash buyer and offers over. Will keep this threat updated.
Really if it does come out downvalued, it would be you who would crash the sale rather than the seller. If it is downvalued 4% could you come up with the difference yourself?
How much is the house you are buying on for originally, and how much was your accepted offer? It all makes a difference to the likelihood of what the seller will do.
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Hardly, Estate agents value to win instruction, jo Bloggs public believe the value of the asking price is correct. it's then for the professional valuators to assess the true value of the property. That's fair for everyone surely.mi-key said:
A reduction of 2% is nothing, nor is 4% really. It's not like they are saying it is a huge amount you would need to find, if it even comes to that.
Just a hunch as the seller has been incredibly difficult to deal with during negotiation... Makes me think they could be difficult should something crop up. Mortgage advisor has also told me that several homes he's arranged mortgages for have all been reduced by 2-4% via the lender valuation. Don't want to go 7 or so weeks then find out they crash the sale.
IMO with a touch of emotional bias, I would take the offer as its the only offer and get the money! Mainstream news now sharing market has fallen for 7 months in a row, surely this should give a nudge to people to think twice about holding out for the dream cash buyer and offers over. Will keep this threat updated.
Really if it does come out downvalued, it would be you who would crash the sale rather than the seller. If it is downvalued 4% could you come up with the difference yourself?
How much is the house you are buying on for originally, and how much was your accepted offer? It all makes a difference to the likelihood of what the seller will do.
It's not fun especially being on the cusp of a LTV bracket so if you tip over by 1k we lose the rate we want.Always find comparables. You can ask, but you won’t always get what you want.
House prices are now falling as they were in 2008… A correction is happening - Jan 20230 -
fackers_2 said:
it's then for the professional valuators to assess the true value of the property. That's fair for everyone surely.mi-key said:
A reduction of 2% is nothing, nor is 4% really. It's not like they are saying it is a huge amount you would need to find, if it even comes to that.
Just a hunch as the seller has been incredibly difficult to deal with during negotiation... Makes me think they could be difficult should something crop up. Mortgage advisor has also told me that several homes he's arranged mortgages for have all been reduced by 2-4% via the lender valuation. Don't want to go 7 or so weeks then find out they crash the sale.
IMO with a touch of emotional bias, I would take the offer as its the only offer and get the money! Mainstream news now sharing market has fallen for 7 months in a row, surely this should give a nudge to people to think twice about holding out for the dream cash buyer and offers over. Will keep this threat updated.
Really if it does come out downvalued, it would be you who would crash the sale rather than the seller. If it is downvalued 4% could you come up with the difference yourself?
How much is the house you are buying on for originally, and how much was your accepted offer? It all makes a difference to the likelihood of what the seller will do.Um, no, the true (i.e. fair) value is the actual price agreed and paid by a willing buyer to a willing seller with neither being pressured into completing the transaction.The "professional valuators" primary purpose is to ensure the property is suitable security for the lender in case everything goes pear-shaped; obviously in many situations this valuation can be less than the true fair market valuation.
Every generation blames the one before...
Mike + The Mechanics - The Living Years5 -
You made an offer on the house, so obviously you felt the house was worth that much to you and it was a fair price, barring anything coming up on the survey?fackers_2 said:
Hardly, Estate agents value to win instruction, jo Bloggs public believe the value of the asking price is correct. it's then for the professional valuators to assess the true value of the property. That's fair for everyone surely.mi-key said:
A reduction of 2% is nothing, nor is 4% really. It's not like they are saying it is a huge amount you would need to find, if it even comes to that.
Just a hunch as the seller has been incredibly difficult to deal with during negotiation... Makes me think they could be difficult should something crop up. Mortgage advisor has also told me that several homes he's arranged mortgages for have all been reduced by 2-4% via the lender valuation. Don't want to go 7 or so weeks then find out they crash the sale.
IMO with a touch of emotional bias, I would take the offer as its the only offer and get the money! Mainstream news now sharing market has fallen for 7 months in a row, surely this should give a nudge to people to think twice about holding out for the dream cash buyer and offers over. Will keep this threat updated.
Really if it does come out downvalued, it would be you who would crash the sale rather than the seller. If it is downvalued 4% could you come up with the difference yourself?
How much is the house you are buying on for originally, and how much was your accepted offer? It all makes a difference to the likelihood of what the seller will do.
It's not fun especially being on the cusp of a LTV bracket so if you tip over by 1k we lose the rate we want.
You can ask 10 building surveyors and 10 mortgage lenders valuers to value a home, and they can all come back with different amounts, so which is the correct one?
If you offered £200K for this house, then that is what is worth to you. If someone comes along and says it is worth £195K why is their opinion any more valid than yours?
'Professional valuers' basically just guess at roughly what a house is worth.4 -
What goes up sometimes goes down
Welcome to the housing market.
5% downturn in house prices with more on the way.
However Mr and Mrs Jones who have lived in there home may still want top price on their house because the one across the road sold for £1,000,000 last year.
A property is worth what someone can afford to pay for it1 -
Or they may need that price to buy their next home, so can't sell for less, so will either sell for that or stay where they are .dimbo61 said:What goes up sometimes goes down
Welcome to the housing market.
5% downturn in house prices with more on the way.
However Mr and Mrs Jones who have lived in there home may still want top price on their house because the one across the road sold for £1,000,000 last year.
A property is worth what someone can afford to pay for it
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If you go by the valuation set by the mortgage lender's survey, don't you have to take into account your LTV? As in, if yu are putting in, say, £50k of your own money as a deposit, and the mortgage company puts in the rest, all they care about is the amount they've lent you, not your £50k deposit. So they won't mind if their surveyor thinks the value of the property is only the value of the loan.
It's your deposit that you have to protect, and only 'your' survey will do that.1
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