Mortgage down valuation letter

Wales12011

Hi, I’m a first time buyer but my house has been down-valued. I can afford to pay the extra however i still want to try get it down as much as possible. Does this email seem fair? 

I wanted to follow up regarding the recent mortgage valuation, which came in at £230,000 - lower than our agreed purchase price of £242,000. 

I’ve reviewed recent comparable sales, which have highlighted a few trends: 

• A 55m² terraced house sold for £215,000 in June 2024. While my house is semi-detached, this indicates the current asking price may be higher than the market supports. 
•  A 76m² house sold for £238,000 in 2022. Given that my property is 55m²,  it would typically be valued lower in comparison. 

Additionally, the survey highlighted a few areas that require attention: 

• Damp staining and a bulge in the kitchen ceiling, potentially due to a bathroom leak 
• An outdated fuse box, which may need upgrading to meet modern safety standards. 

Taking these factors into account, including the financial impact of delays and the down valuation, I would like to propose a revised purchase price of £236,000. This aligns with the mortgage valuation and comparable sales, ensuring a fair and reasonable price for the property in its current condition. 

I remain fully committed to proceeding with the purchase and hope we can find a solution that works for both parties. Please let me know your thoughts, and I'd be happy to discuss this further. 

newsgroupmonkey_

I wouldn't bother mentioning those 2 things. The first is something that was clearly there when you viewed.

The second is something that comes up in every survey. The rules are changed annually. If you put in a brand new one this year, there'll be something wrong with it within a couple of years.

Otherwise, seems fair. You're going to have to find another £6k from somewhere though.

Hoenir

£6k for a new fuse box and fixing a potential leak isn't worth mentioning. 

Ring the Estate Agent and telling them that the mortgage valuation is £230k. However you are willing to meet in the middle at £236k as a final offer. Straightforward job done. 

ReadySteadyPop

Wales12011 said:

Hi, I’m a first time buyer but my house has been down-valued. I can afford to pay the extra however i still want to try get it down as much as possible. Does this email seem fair? 

I wanted to follow up regarding the recent mortgage valuation, which came in at £230,000 - lower than our agreed purchase price of £242,000. 

I’ve reviewed recent comparable sales, which have highlighted a few trends: 

• A 55m² terraced house sold for £215,000 in June 2024. While my house is semi-detached, this indicates the current asking price may be higher than the market supports. 
•  A 76m² house sold for £238,000 in 2022. Given that my property is 55m²,  it would typically be valued lower in comparison. 

Additionally, the survey highlighted a few areas that require attention: 

• Damp staining and a bulge in the kitchen ceiling, potentially due to a bathroom leak 
• An outdated fuse box, which may need upgrading to meet modern safety standards. 

Taking these factors into account, including the financial impact of delays and the down valuation, I would like to propose a revised purchase price of £236,000. This aligns with the mortgage valuation and comparable sales, ensuring a fair and reasonable price for the property in its current condition. 

I remain fully committed to proceeding with the purchase and hope we can find a solution that works for both parties. Please let me know your thoughts, and I'd be happy to discuss this further. 

How many other offers do they have?

Dustyevsky

Whatever you do, please don't refer to it as 'my' house, when it's simply a house you've made an offer on. Referring to it like that conveys a sub-text of emotional attachment, which may weaken your bargaining stance.

ReadySteadyPop

Dustyevsky said:

Whatever you do, please don't refer to it as 'my' house, when it's simply a house you've made an offer on. Referring to it like that conveys a sub-text of emotional attachment, which may weaken your bargaining stance.

Good point.

MeteredOut

How long has the house been on the market? Are you willing to (or would you have to) walk away if they don't accept it?

eddddy

Wales12011 said:

I’ve reviewed recent comparable sales, which have highlighted a few trends: 

• A 55m² terraced house sold for £215,000 in June 2024. While my house is semi-detached, this indicates the current asking price may be higher than the market supports. 
•  A 76m² house sold for £238,000 in 2022. Given that my property is 55m²,  it would typically be valued lower in comparison. 

Additionally, the survey highlighted a few areas that require attention: 

• Damp staining and a bulge in the kitchen ceiling, potentially due to a bathroom leak 
• An outdated fuse box, which may need upgrading to meet modern safety standards. 

Mentioning the stuff above might give the estate agent a lot of ammunition to push back at you. (It's what sales people call 'objection handling'.)

• If those houses are local, the estate agent probably knows them... and they will probably attempt to argue you into the ground, when it comes to property valuations.

• The estate agent might suggest getting a quote for the kitchen ceiling. It might be about £1k

• Unless the fusebox is ancient, it probably isn't really an issue 

I'd be tempted to just say something like "I originally offered £242k, The mortgage valuation was £230k. I'm prepared to go half way and offer £236k." 


Whether your reduced offer is accepted is down to the seller's mindset and/or their financial situation.

[Deleted User]

As a vendor I would be very much of the view that your financing is your affair. You can in fact still afford the original offer price so I would see very little reason to accept a reduction.

Professional valuations have a margin of error and the valuation is within that. Had they valued between 225 to 250 nobody could say that's outrageous. You could have made are appropriate offer by comparing other properties in the first place, instead of belatedly.

On the basis of the above, dispense with the long winded explanations. Consider offering 230 or 236 as you please. See how it goes.

ReadySteadyPop

[Deleted User] said:

As a vendor I would be very much of the view that your financing is your affair. You can in fact still afford the original offer price so I would see very little reason to accept a reduction.

Professional valuations have a margin of error and the valuation is within that. Had they valued between 225 to 250 nobody could say that's outrageous. You could have made are appropriate offer by comparing other properties in the first place, instead of belatedly.

On the basis of the above, dispense with the long winded explanations. Consider offering 230 or 236 as you please. See how it goes.

Many sellers have come unstuck waiting for original offer price, sometimes the market moves away from them and the next offer they get is a lower one, depending on how much they need to sell they should be realistic about the buyer`s financial situation, and the situation of buyers in general.

[Deleted User]

ReadySteadyPop said:

[Deleted User] said:

As a vendor I would be very much of the view that your financing is your affair. You can in fact still afford the original offer price so I would see very little reason to accept a reduction.

Professional valuations have a margin of error and the valuation is within that. Had they valued between 225 to 250 nobody could say that's outrageous. You could have made are appropriate offer by comparing other properties in the first place, instead of belatedly.

On the basis of the above, dispense with the long winded explanations. Consider offering 230 or 236 as you please. See how it goes.

Many sellers have come unstuck waiting for original offer price, sometimes the market moves away from them and the next offer they get is a lower one, depending on how much they need to sell they should be realistic about the buyer`s financial situation, and the situation of buyers in general.

I recently stood firm against a buyer trying for a last minute 6k reduction. Sounds like you would be 6k worse off than me. By all means.

Thankfully for you, posts on a forum are free.