Offer made valuation less .... ?

dambox

Hi

We made an offer on a house for asking price @ 560K. The valuation has come back with the survery @ 525K. Estate agent of course says 560k is the market price.

Any advice or suggestions ?

nrsql

Depends on how much you want the property and how much you can afford.
Making an offer for the asking price in todays market sounds like you are very keen on this house.
If you buy at 560k then, you being the market, that is the market price.

You can try a reduced offer and it may be accepted or the seller might take someone else if he thinks you are messing him around. Ignore what the agent says - he's just trying to broker a sale and doesn't really care at what price.

kamaran

Are you taking out a mortgage? Is the mortgage approved?

Problem you have is someone else may buy it at that price and ignore the valuations. The surveryor reached the 525K by phoning local agents for comparables. Check out local competition to give you an idea if you are getting a fair price.

Further, asking for a 35k drop is fairly substantial - what are the chances of the vendor accepting this?

As nrsql said house prices are dictated by what the market will bear. If you feel its worth £560K (which you did) then that's the market value!

telly-addict

Try this website for the prices that other properties near by have gone for:

http://www.nethouseprices.com/component/uk/

it's free and may give you some idea of how the valuer came up with his price.

Kenny4315

What is the agent, is it one that specialises in expensive houses ie the like of carter jones, or is it a regular agent. If it is the likes of carter jonas, etc then they always overvalue houses, with the view that there is always someone around who'll pay the price, even if it's overpriced. Even regular agents have no real idea of the market value, had mine valued recently and there was a £50k difference between top and bottom valuations, I had it value by 4 ea's, the seller will always start close to the top valuation, unless in an exceptional hurry.

If it were me I'd be trying seriousy to get it for less than £560k in todays slowing and potentially falling market, especially when the survey says £525k, and when the market is tettering its those houses that are expensive that'll will take an immediate hammering if the market falls even slightly. Don't forget if you could get it below £500k you'd save a bit on stamp duty as-well.

Are you a cash buyer ?? ie don't need to sell to buy. If you are there is no way you should go close to the £560k mark, having cash position easily knocks 5% off what sellers will take, sometimes even more when the stakes are up to the £560k mark.

Obviously at the end of the day its your cash, but if you buy it for £560k be prepared to take a hit if you need to sell it in the near to meduim term, ie the next 5 years or so.

mrcow

Honestly, I think you'd be crazy to proceed with a £35k difference, especially with the market as unsure as it is at the moment. Have you rechecked this valuation with the surveyor?

dambox wrote:

Estate agent of course says 560k is the market price.

Of course they do! Because they are going to look really stupid in front of their clients to be proved otherwise! And also they are working off commission based on the sale price (and will say anything for you to keep your offer in!).