Huge drop in buyer mortgage valuation

Hoenir

slasfra said:

And it’s hard to know how much interest there would have been (a good indication of if it was good value) because this was the first viewing (viewing booked the day it went onto market), they offered straight away and we accepted. 

And now they are backtracking on the price. Why not remarket the property? 

slasfra

Hoenir said:

slasfra said:

And it’s hard to know how much interest there would have been (a good indication of if it was good value) because this was the first viewing (viewing booked the day it went onto market), they offered straight away and we accepted. 

And now they are backtracking on the price. Why not remarket the property? 

I just worry another other mortgage providers are going to value it the same, and in the meantime we’re spending thousands on legal fees, estate agent fees, surveys. Happy to hear any advice or be told what to do 😂

DullGreyGuy

horsewithnoname said:

Obviously the broker was just a middle man with the bank who actually lends the money, I imagined that was understood so I didn’t spell it out. 

As mentioned above, other types of brokers are not simply middlemen, they can be decision makers or they may have a direct line to the decision makers so can present the case better or worse than the next guy. 

My post was as much for my own education, my experience of mortgage brokers suggests they are more removed... they dont discuss the case with the underwriter, they dont know underwriters by name to know who's more or less favourable to certain things... at best they have a knowledge of what firms generally prefer but thats of limited value in generic cases. 

Guess you are confirming they are much more equal than other brokers and the statement that they switched brokers was irrelevant to the fact the first mortgage was declined and the second accepted. 

RHemmings

slasfra said:

Hoenir said:

slasfra said:

And it’s hard to know how much interest there would have been (a good indication of if it was good value) because this was the first viewing (viewing booked the day it went onto market), they offered straight away and we accepted. 

And now they are backtracking on the price. Why not remarket the property? 

I just worry another other mortgage providers are going to value it the same, and in the meantime we’re spending thousands on legal fees, estate agent fees, surveys. Happy to hear any advice or be told what to do 😂

If you were prepared to risk sending a bit of good money after bad, then you could pay for a desktop valuation yourself. That might come back closer to your asking price, or closer to the previous valuation. If you had two low valuations then that would probably be good information that you're overpriced. If it comes back closer to asking price, then there's most likely a better chance that another mortgage lender will value your house closer to what you want to sell it for.

But, even desktop mortgage valuations vary in price, e.g online suggests £65 to £200. And, depending on when your house most recently sold and how much has been done to it, they may be inaccurate. Of course, that may be what your buyer's mortgage lender did... 

slasfra

RHemmings said:

slasfra said:

Hoenir said:

slasfra said:

And it’s hard to know how much interest there would have been (a good indication of if it was good value) because this was the first viewing (viewing booked the day it went onto market), they offered straight away and we accepted. 

And now they are backtracking on the price. Why not remarket the property? 

I just worry another other mortgage providers are going to value it the same, and in the meantime we’re spending thousands on legal fees, estate agent fees, surveys. Happy to hear any advice or be told what to do 😂

If you were prepared to risk sending a bit of good money after bad, then you could pay for a desktop valuation yourself. That might come back closer to your asking price, or closer to the previous valuation. If you had two low valuations then that would probably be good information that you're overpriced. If it comes back closer to asking price, then there's most likely a better chance that another mortgage lender will value your house closer to what you want to sell it for.

But, even desktop mortgage valuations vary in price, e.g online suggests £65 to £200. And, depending on when your house most recently sold and how much has been done to it, they may be inaccurate. Of course, that may be what your buyer's mortgage lender did... 

Yes I think we might look into that actually. It’s going to be a little while until we know anything from the buyers as they are putting a new mortgage application in. 

BarelySentientAI

slasfra said:

BarelySentientAI said:

slasfra said:

We absolutely cannot accept any less than they offered (because it really is worth the asking, and we couldn’t afford our new house) so it’s either they can get another mortgage or we stay put. 

Of course, the first of those seems not to be true (to the party that matters at least), and the second is entirely irrelevant to the buyer (or more importantly to their lender).

Completely get that. I think that’s why I’m struggling because I also don’t want the buyers to pay more than it’s worth and be trapped.

If it’s a case that that is what it’s worth then we just can’t sell yet and that’s fine. 

Im just confused how all estate agents could be so wrong. And it’s hard to know how much interest there would have been (a good indication of if it was good value) because this was the first viewing (viewing booked the day it went onto market), they offered straight away and we accepted. 

Because estate agents and lender's surveyors are valuing for different things. 

One is "what price should we put on this so the seller can get as much money as possible (and we get the business)", and the other is "how much could the bank sell this for quickly after a forced repossession"

Plus, all valuations have a range - if the EA was 5% up from 'true' and the lender 5% down....

user1977

BarelySentientAI said:

slasfra said:

BarelySentientAI said:

slasfra said:

We absolutely cannot accept any less than they offered (because it really is worth the asking, and we couldn’t afford our new house) so it’s either they can get another mortgage or we stay put. 

Of course, the first of those seems not to be true (to the party that matters at least), and the second is entirely irrelevant to the buyer (or more importantly to their lender).

Completely get that. I think that’s why I’m struggling because I also don’t want the buyers to pay more than it’s worth and be trapped.

If it’s a case that that is what it’s worth then we just can’t sell yet and that’s fine. 

Im just confused how all estate agents could be so wrong. And it’s hard to know how much interest there would have been (a good indication of if it was good value) because this was the first viewing (viewing booked the day it went onto market), they offered straight away and we accepted. 

Plus, all valuations have a range - if the EA was 5% up from 'true' and the lender 5% down....

Yes, I know £25k is "huge" in some contexts, but given the value of the property this is pretty much within normal wiggle room, not "huge" really. Split the difference and it's £237.5k +/- 5.3%. 5% is the normal minimum margin for error before you can accuse surveyors of being negligent, higher if it's a more difficult to value property.

Hoenir

slasfra said:

RHemmings said:

slasfra said:

Hoenir said:

slasfra said:

And it’s hard to know how much interest there would have been (a good indication of if it was good value) because this was the first viewing (viewing booked the day it went onto market), they offered straight away and we accepted. 

And now they are backtracking on the price. Why not remarket the property? 

I just worry another other mortgage providers are going to value it the same, and in the meantime we’re spending thousands on legal fees, estate agent fees, surveys. Happy to hear any advice or be told what to do 😂

If you were prepared to risk sending a bit of good money after bad, then you could pay for a desktop valuation yourself. That might come back closer to your asking price, or closer to the previous valuation. If you had two low valuations then that would probably be good information that you're overpriced. If it comes back closer to asking price, then there's most likely a better chance that another mortgage lender will value your house closer to what you want to sell it for.

But, even desktop mortgage valuations vary in price, e.g online suggests £65 to £200. And, depending on when your house most recently sold and how much has been done to it, they may be inaccurate. Of course, that may be what your buyer's mortgage lender did... 

Yes I think we might look into that actually. It’s going to be a little while until we know anything from the buyers as they are putting a new mortgage application in. 

Are they struggling to raise the finance? 

slasfra

Hoenir said:

slasfra said:

IRHemmings said:

slasfra said:

Hoenir said:

slasfra said:

And it’s hard to know how much interest there would have been (a good indication of if it was good value) because this was the first viewing (viewing booked the day it went onto market), they offered straight away and we accepted. 

And now they are backtracking on the price. Why not remarket the property? 

I just worry another other mortgage providers are going to value it the same, and in the meantime we’re spending thousands on legal fees, estate agent fees, surveys. Happy to hear any advice or be told what to do 😂

If you were prepared to risk sending a bit of good money after bad, then you could pay for a desktop valuation yourself. That might come back closer to your asking price, or closer to the previous valuation. If you had two low valuations then that would probably be good information that you're overpriced. If it comes back closer to asking price, then there's most likely a better chance that another mortgage lender will value your house closer to what you want to sell it for.

But, even desktop mortgage valuations vary in price, e.g online suggests £65 to £200. And, depending on when your house most recently sold and how much has been done to it, they may be inaccurate. Of course, that may be what your buyer's mortgage lender did... 

Yes I think we might look into that actually. It’s going to be a little while until we know anything from the buyers as they are putting a new mortgage application in. 

Are they struggling to raise the finance? 

I think they’ll be using mortgage for the purchase so yeah if the mortgage provider won’t buy the full price 

chanz4

our rics help to buy was 8k over what we sold our house actually for