Nationwide down valued

MultiFuelBurner

Grizebeck said:

MultiFuelBurner said:

The only thing in your favour is the potential lull in the market.

No harm sharing this information and seeing if you can come to some arrangement.

Think that depends where you live....

If we had to caveat every single statement on here the posts would be huge.

I will clarify that the majority of the housing market is in a lull.

I do love it here 😂😂😂😜

lookstraightahead

It's up to you and the vendor. Neither of you have to find the shortfall, as the option is to say no (either if you).

10% or so below asking price isn't much in my book, and there is a lull in the market (although some people cant sit comfortably with that fact). 

So, if you've not got the "shortfall" (remember you will be paying more than what it's valued at), then ask them to reduce. If not, walk away.

There is no set procedure, so it's not just up to you to find the shortfall - but if they won't and you can't, you can find something else.

do remember that to the bank they're not wanting to risk that amount, so maybe you shouldn't either.

Personally I would ask for a reduction, then move on if they say no. Probably it will be there for a while, but that's not guaranteed.

lookstraightahead

RelievedSheff said:

Seanj123 said:

That may well be the road Il have to attempt to go down, I can’t see the vendor dropping by 20k that would be 25k on original asking price 

It isn't really up to the vendor to find your shortfall in funding!

You have offered what you thought the property was worth and now you can't fund that.

You can ask for them to accept a lower offer but they are under no obligation to accept it.

You can try a different lender and hope they come up with a different valuation. Or realistically you need to be looking at properties that are cheaper and that you can raise the funding on.

Or ....

The vendor and yourself have overpriced the property, and the lender (who is paying for the property after all) won't take a risk at that price.

Extra info is useful. 

The housing market is there to be negotiated on. Prices are not set in stone. 

As we are seeing, there are reductions all over the place Op. 

Seanj123

I feel asking for a reduction is the only way to move forward or me coming up with another £18k to cover the shortfall to what the bank values the house at, I could try another mortgage provider but then be in the same position again potentially. Best option I think is to find some middle ground with the vendor. Realistically for me to move forward without adding any money would be for the vendor to drop to 210 and I go on a 95% mortgage 

housebuyer143

Seanj123 said:

I feel asking for a reduction is the only way to move forward or me coming up with another £18k to cover the shortfall to what the bank values the house at, I could try another mortgage provider but then be in the same position again potentially. Best option I think is to find some middle ground with the vendor. Realistically for me to move forward without adding any money would be for the vendor to drop to 210 and I go on a 95% mortgage 

You are in an excellent bargaining position. You have a valuation report saying the house is only worth £200k. You must start there. Do not worry about offending them as you have evidence as to why you are asking. 
Then if they say no, try and meet in the middle if that is what you want. 
You just asking for £200k might save you £10k, so it has to be worth trying for it first and foremost. I'm sure 90% ltv would be cheaper as well than 95%

lookstraightahead

housebuyer143 said:

Seanj123 said:

I feel asking for a reduction is the only way to move forward or me coming up with another £18k to cover the shortfall to what the bank values the house at, I could try another mortgage provider but then be in the same position again potentially. Best option I think is to find some middle ground with the vendor. Realistically for me to move forward without adding any money would be for the vendor to drop to 210 and I go on a 95% mortgage 

You are in an excellent bargaining position. You have a valuation report saying the house is only worth £200k. You must start there. Do not worry about offending them as you have evidence as to why you are asking. 
Then if they say no, try and meet in the middle if that is what you want. 
You just asking for £200k might save you £10k, so it has to be worth trying for it first and foremost. I'm sure 90% ltv would be cheaper as well than 95%

This. 95% mortgages are harder to come by and providers will be even more wary if they're lending 95%, that's a lot to lend on, particularly in this market where house prices are falling/staying still.

Seanj123

I fear the whole deal may collapse together 

lookstraightahead

Seanj123 said:

I fear the whole deal may collapse together 

So think of a plan B, then negotiate on plan A at the same time. Never fear! 😊

born_again

Seanj123 said:

I fear the whole deal may collapse together 

Especially give the need to also get > and for a damp and timber survey < which means valuer thinks something is amiss. So even is Op manages to get the seller to drop price now, what will they do when these come back with further issues?

housebuyer143

born_again said:

Seanj123 said:

I fear the whole deal may collapse together 

Especially give the need to also get > and for a damp and timber survey < which means valuer thinks something is amiss. So even is Op manages to get the seller to drop price now, what will they do when these come back with further issues?

True. Order of business is haggle them right down and then commission the survey. It might still fall apart if the survey doesn't have a good result so be prepared.