Help- mortgage valuation significantly less than offer price

Hoenir

ReadySteadyPop said:

Hoenir said:

ReadySteadyPop said:

meggles88 said:

Well I had the surveyor who did the level 2 homebuyers survey come back. He’s valued it at even less! £365,000! 

Obviously the seller is trying it on here.

Buyers have been known to pay over market value. 

When borrowing was cheap maybe, less so now.

Not all buyers require a mortgage.  

ReadySteadyPop

meggles88 said:

ReadySteadyPop said:

meggles88 said:

ReadySteadyPop said:

meggles88 said:

Well I had the surveyor who did the level 2 homebuyers survey come back. He’s valued it at even less! £365,000! 

Obviously the seller is trying it on here.

I’m not sure it’s the sellers I think it’s the estate agent, giving them incorrect valuations. I don’t mind paying over asking as we did offer more and will honour that. But £56,000 over. No thanks! Also lots on the homebuyers survey which wasn’t visible to naked eye. Sadly I think they will have to relist and face the same thing happening again if we can’t agree. The estate agent has asked for a visit valuation from lenders.. may end up in an even worse position if they do that. 

meggles88 said:

ReadySteadyPop said:

meggles88 said:

Well I had the surveyor who did the level 2 homebuyers survey come back. He’s valued it at even less! £365,000! 

Obviously the seller is trying it on here.

I’m not sure it’s the sellers I think it’s the estate agent, giving them incorrect valuations. I don’t mind paying over asking as we did offer more and will honour that. But £56,000 over. No thanks! Also lots on the homebuyers survey which wasn’t visible to naked eye. Sadly I think they will have to relist and face the same thing happening again if we can’t agree. The estate agent has asked for a visit valuation from lenders.. may end up in an even worse position if they do that. 

You mean they might value even lower?

If the lender comes out and does a proper in person evaluation then yes may end up being even lower! 

Historical sale price is important now that rates are back to normal, how is that looking?

meggles88

The property I am purchasing was sold at £206000 in 2017. There is not a lot of historical data due to people not moving. One house 4 bed that sold for £425000 in 2022. Other than that it’s all a bit stagnant down in the southe west! 

chanz4

meggles88 said:

The property I am purchasing was sold at £206000 in 2017. There is not a lot of historical data due to people not moving. One house 4 bed that sold for £425000 in 2022. Other than that it’s all a bit stagnant down in the southe west! 

towards the end of the boom then

meggles88

Indeed. I think I am going to use the private Surveyors report for negotiation. Clearly lots of hidden factors I hadn’t considered in my purchase as well as learning for myself. If I get the bank to do an “in person survey” the vendors risk it getting down valued even further… time to go to negotiation table and see what happens I think! Thank you all for valuable feedback etc! 

ReadySteadyPop

meggles88 said:

The property I am purchasing was sold at £206000 in 2017. There is not a lot of historical data due to people not moving. One house 4 bed that sold for £425000 in 2022. Other than that it’s all a bit stagnant down in the southe west! 

I am assuming they have done loads of work that they think doubles the price in that time? Massive red flag I think.

meggles88

ReadySteadyPop said:

meggles88 said:

The property I am purchasing was sold at £206000 in 2017. There is not a lot of historical data due to people not moving. One house 4 bed that sold for £425000 in 2022. Other than that it’s all a bit stagnant down in the southe west! 

I am assuming they have done loads of work that they think doubles the price in that time? Massive red flag I think.

I think they may have been led down the garden path by a very aggressive estate agent unfortunately. We foolishly overbid because we love the house, but this was on the basis that the house would have been valued at £400,000… hopefully the vendors will negotiate. To be honest given the in person/private valuation I am tempted to go for the middle ground of £375000 as the valuation and offer 5% over the valuation to honour our over bidding. We do really like the house, but financially we can’t afford to make up the extra from Our deposit/equity to that much. It would push our mortgage to over £1500 per month.. plus numerous repairs and fixes needed as well as 
I think we will probably lose the vendors but I wish them the best of luck with the same thing not happening again..

Hoenir

meggles88 said:

ReadySteadyPop said:

meggles88 said:

The property I am purchasing was sold at £206000 in 2017. There is not a lot of historical data due to people not moving. One house 4 bed that sold for £425000 in 2022. Other than that it’s all a bit stagnant down in the southe west! 

I am assuming they have done loads of work that they think doubles the price in that time? Massive red flag I think.

I think they may have been led down the garden path by a very aggressive estate agent unfortunately. We foolishly overbid because we love the house, but this was on the basis that the house would have been valued at £400,000… 

I've never known a vendor knowingly underprice when marketing a property. Must of have been rubbing their hands when the bidding war started. 

meggles88

Hoenir said:

meggles88 said:

ReadySteadyPop said:

meggles88 said:

The property I am purchasing was sold at £206000 in 2017. There is not a lot of historical data due to people not moving. One house 4 bed that sold for £425000 in 2022. Other than that it’s all a bit stagnant down in the southe west! 

I am assuming they have done loads of work that they think doubles the price in that time? Massive red flag I think.

I think they may have been led down the garden path by a very aggressive estate agent unfortunately. We foolishly overbid because we love the house, but this was on the basis that the house would have been valued at £400,000… 

I've never known a vendor knowingly underprice when marketing a property. Must of have been rubbing their hands when the bidding war started. 

I’m sure they haven’t underpriced on purpose just need a reality check unfortunately

ReadySteadyPop

meggles88 said:

ReadySteadyPop said:

meggles88 said:

The property I am purchasing was sold at £206000 in 2017. There is not a lot of historical data due to people not moving. One house 4 bed that sold for £425000 in 2022. Other than that it’s all a bit stagnant down in the southe west! 

I am assuming they have done loads of work that they think doubles the price in that time? Massive red flag I think.

I think they may have been led down the garden path by a very aggressive estate agent unfortunately. We foolishly overbid because we love the house, but this was on the basis that the house would have been valued at £400,000… hopefully the vendors will negotiate. To be honest given the in person/private valuation I am tempted to go for the middle ground of £375000 as the valuation and offer 5% over the valuation to honour our over bidding. We do really like the house, but financially we can’t afford to make up the extra from Our deposit/equity to that much. It would push our mortgage to over £1500 per month.. plus numerous repairs and fixes needed as well as 
I think we will probably lose the vendors but I wish them the best of luck with the same thing not happening again..

Interest rates were near zero in 2017 when this house was 200k, I would be very cautious of overpaying by a lot here.