Halifax have undervalued my house - HELP!

theartfullodger

Probably realistic, what it's really worth... Time will tell...

Good luck.

ReadySteadyPop

Sheppo88 said:

ReadySteadyPop said:

Sheppo88 said:

Hi all,

Looking for some advice—we recently listed our property on the market and had it valued by three estate agents between £500,000 – £525,000.

It’s a 5-bedroom detached home with several standout features. Most properties in our area are 3-4 bedrooms and are typically listed between £350,000 – £450,000.

We secured a buyer within 11 days of listing, and another interested party later pulled out after learning that an offer had already been made.

Fast forward two weeks, and our buyer’s lender (Halifax) has down-valued the property to £463,000, making it difficult for them to secure the mortgage at their desired loan-to-value (LTV). While they can still afford the purchase, the interest rate they’d now have to accept is significantly higher, making things more challenging for them.

We had agreed on £495,000 and have already negotiated as much as possible on our onward purchase—our sellers won’t go any lower, so we’re now stuck.

I suspect the £463,000 valuation is an automated, computer-generated figure from Halifax, as no surveyor has visited or even been outside the property (CCTV confirms this). Halifax is known for this kind of valuation approach.

We’ve suggested an independent RICS valuation, which we’re willing to contribute towards, or alternatively, trying a different lender. What else can we do? Should we brace for this sale falling through, or is there still reason to remain positive?

One positive is that our buyer is very level-headed, thorough, and also surprised by Halifax’s low valuation—they know the property is worth what they’re paying.

Any advice or suggestions to help ensure a positive and successful outcome would be greatly appreciated!

Thanks,
Shep

How many other offers do your sellers have?

what do you mean by offers - mortgage offers? They are, say, in the late 40s or early 50s, moved from Jersey to the mainland, have a considerable deposit and are looking at a 65% LTV, so ideally, a lower rate. Currently in rented and have been for 18 months whilst finding the next property in this area. 

Just had the following response from our agent:

We accept all points made by the sellers - the valuation from Halifax was £463,369. We are as disappointed by this turn of events as they are, but we remain committed to this, so we have challenged the Halifax valuation and await a response. if an independent valuation can be helpful we are very happy to go down that route. I am also willing to look at alternative lenders but I don't want to do that unless I absolutely have to.

I feel they need to try a broker or alternative lender. But, positive so far. I don't think Halifax will budge.

Did your onward purchase have lots of people competing to buy, is that why they won`t negotiate?

Sheppo88

ReadySteadyPop said:

Sheppo88 said:

ReadySteadyPop said:

Sheppo88 said:

Hi all,

Looking for some advice—we recently listed our property on the market and had it valued by three estate agents between £500,000 – £525,000.

It’s a 5-bedroom detached home with several standout features. Most properties in our area are 3-4 bedrooms and are typically listed between £350,000 – £450,000.

We secured a buyer within 11 days of listing, and another interested party later pulled out after learning that an offer had already been made.

Fast forward two weeks, and our buyer’s lender (Halifax) has down-valued the property to £463,000, making it difficult for them to secure the mortgage at their desired loan-to-value (LTV). While they can still afford the purchase, the interest rate they’d now have to accept is significantly higher, making things more challenging for them.

We had agreed on £495,000 and have already negotiated as much as possible on our onward purchase—our sellers won’t go any lower, so we’re now stuck.

I suspect the £463,000 valuation is an automated, computer-generated figure from Halifax, as no surveyor has visited or even been outside the property (CCTV confirms this). Halifax is known for this kind of valuation approach.

We’ve suggested an independent RICS valuation, which we’re willing to contribute towards, or alternatively, trying a different lender. What else can we do? Should we brace for this sale falling through, or is there still reason to remain positive?

One positive is that our buyer is very level-headed, thorough, and also surprised by Halifax’s low valuation—they know the property is worth what they’re paying.

Any advice or suggestions to help ensure a positive and successful outcome would be greatly appreciated!

Thanks,
Shep

How many other offers do your sellers have?

what do you mean by offers - mortgage offers? They are, say, in the late 40s or early 50s, moved from Jersey to the mainland, have a considerable deposit and are looking at a 65% LTV, so ideally, a lower rate. Currently in rented and have been for 18 months whilst finding the next property in this area. 

Just had the following response from our agent:

We accept all points made by the sellers - the valuation from Halifax was £463,369. We are as disappointed by this turn of events as they are, but we remain committed to this, so we have challenged the Halifax valuation and await a response. if an independent valuation can be helpful we are very happy to go down that route. I am also willing to look at alternative lenders but I don't want to do that unless I absolutely have to.

I feel they need to try a broker or alternative lender. But, positive so far. I don't think Halifax will budge.

Did your onward purchase have lots of people competing to buy, is that why they won`t negotiate?

Not at all, on the market 9 months, no offers or reduction. We fell in love, tried to negotiate, managed to get them to drop £20k on the asking price and they then said that is the lowest they will go and will not reduce any further regardless of the circumstances. 

BikingBud

Sheppo88 said:

Hi all,

Looking for some advice—we recently listed our property on the market and had it valued by three estate agents between £500,000 – £525,000.

SNIP

One positive is that our buyer is very level-headed, thorough, and also surprised by Halifax’s low valuation—they know the property is worth what they’re paying.

SNIP

If they are level headed and fully confident then the deal will progress, even if it means that they need to pay a higher interest rate.

Bear in mind that the difference is less than 7% and that would be considered reasonable variation.

Out of interest how much did you pay and how much do you "need" to move onto your next purchase?

[Deleted User]

£463,369 - You can see that valuation had no human input. I don't know if any lenders do physical valuations but you'd think that since it's crucial information for a transaction that will earn them hundreds of thousands from the client, they could do more than just press a button.

Sheppo88

BikingBud said:

Sheppo88 said:

Hi all,

Looking for some advice—we recently listed our property on the market and had it valued by three estate agents between £500,000 – £525,000.

SNIP

One positive is that our buyer is very level-headed, thorough, and also surprised by Halifax’s low valuation—they know the property is worth what they’re paying.

SNIP

If they are level headed and fully confident then the deal will progress, even if it means that they need to pay a higher interest rate.

Bear in mind that the difference is less than 7% and that would be considered reasonable variation.

Out of interest how much did you pay and how much do you "need" to move onto your next purchase?

We paid £490k 8 months ago. Spent an additional £15-20k on boarding loft, flooring, blinds to all windows, fitted wardrobes to every room, panelling in hall and landing, tiled garage floor, upgraded the garage to have an extended utility and laundry area. Still usable as a double garage as well. We also agreed to leave the dining table, chairs, sofa, American fridge freezer, breakfast bar stools, 75inch led tv and 65inch led tv, 2 x Sonos arc soundbars and 2 x media units, light fittings and hallway and landing furniture.

Sadly, my wife can't settle and with several family members (more than 1 in 2) getting the big C recently, we figured life is too short to be unhappy. 


We need as an absolute minimum £490k to make it viable.

BikingBud

So it seems you paid top whack £490k given the current expectations, £500k-£525K, and HPI hasn't moved this forward significantly.

You have then spent on "improvements"/items that may, or may not, be considered to have added value and would not enhance the overall house price. 

Also for some if not most of the goods you have itemised I would expect to find on a separate list with potential for costs attached, quite clearly they will also not form part of the house valuation and should not be treated as such, else you are giving them away.

Have you explored the flex in your next move to see what options you have?

IAMIAM

Its not the lender to change, its the valuer...and there is usually only two that all lenders use...Countrywide and L&G Surveying...and you will find that the same valuer is sent out! 

[Deleted User]

Sheppo88 said:

BikingBud said:

Sheppo88 said:

Hi all,

Looking for some advice—we recently listed our property on the market and had it valued by three estate agents between £500,000 – £525,000.

SNIP

One positive is that our buyer is very level-headed, thorough, and also surprised by Halifax’s low valuation—they know the property is worth what they’re paying.

SNIP

If they are level headed and fully confident then the deal will progress, even if it means that they need to pay a higher interest rate.

Bear in mind that the difference is less than 7% and that would be considered reasonable variation.

Out of interest how much did you pay and how much do you "need" to move onto your next purchase?

We paid £490k 8 months ago. Spent an additional £15-20k on boarding loft, flooring, blinds to all windows, fitted wardrobes to every room, panelling in hall and landing, tiled garage floor, upgraded the garage to have an extended utility and laundry area. Still usable as a double garage as well. We also agreed to leave the dining table, chairs, sofa, American fridge freezer, breakfast bar stools, 75inch led tv and 65inch led tv, 2 x Sonos arc soundbars and 2 x media units, light fittings and hallway and landing furniture.

Sadly, my wife can't settle and with several family members (more than 1 in 2) getting the big C recently, we figured life is too short to be unhappy. 


We need as an absolute minimum £490k to make it viable.

Sorry to hear about the circumstances. 

To be honest if the buyers can still afford it then maybe they just need to swallow what must be only a slightly higher interest rate.

They are benefitting a fair bit from the work you've done and items you will leave. Whilst those things don't add immensely to the value you've come down to 495 amd even your buyer remains certain its worth it.

We once had two valuations,  10% difference. It can be very frustrating.

Hoenir

Sheppo88 said:

BikingBud said:

Sheppo88 said:

Hi all,

Looking for some advice—we recently listed our property on the market and had it valued by three estate agents between £500,000 – £525,000.

SNIP

One positive is that our buyer is very level-headed, thorough, and also surprised by Halifax’s low valuation—they know the property is worth what they’re paying.

SNIP

If they are level headed and fully confident then the deal will progress, even if it means that they need to pay a higher interest rate.

Bear in mind that the difference is less than 7% and that would be considered reasonable variation.

Out of interest how much did you pay and how much do you "need" to move onto your next purchase?

We paid £490k 8 months ago. Spent an additional £15-20k on boarding loft, flooring, blinds to all windows, fitted wardrobes to every room, panelling in hall and landing, tiled garage floor, upgraded the garage to have an extended utility and laundry area. Still usable as a double garage as well. We also agreed to leave the dining table, chairs, sofa, American fridge freezer, breakfast bar stools, 75inch led tv and 65inch led tv, 2 x Sonos arc soundbars and 2 x media units, light fittings and hallway and landing furniture.

There's the fundamental issue. What did the builder provide in the way of incentives?  Flooring/carpting; fitted kitchen, appliances, landscaped garden, free legal fees etc etc. Newbuilds likewise come at a premium. 

Personalised improvements won't add much value either. All the fixtures and fittings can be discounted from the property value as well.