valuation much lower than offer accepted!

paintpot

If the seller's property is vacant and IF they are paying a mortgage then surely they would want to offload/sell the property as soon as possible. If you pull out and they have to re market the property then IF they are paying a mortgage they will lose out on the repayments and also on solicitor fees to date so you could possibly negotiate with them. And they will be uncertain of when they are going to get a buyer and at what price in an uncertain market. Where have they gone to? Have they bought another house?

nuttynutz wrote: »

Thanks for your replys , the sellers we are buying from have no chain and their property is vacant as they have now moved on so they can probably sit it out and wait which is such a bummer for us

Jorgan_2

nick22abdn wrote: »

I think you'll find that the difference in valuations is beacuase the first two were carried out by unqualified estate agents and the last one by a chartered surveyor.

Estate agents are unlikely to be as accurate with their valuations for two reasons - firstly they want you to sell with them and are therefore likely to value high and secondly they haven't had 2/3 years worth of training as RICS people have.

Who do you think the surveyors go to when the need advice & comparable evidence on properties? I spend upto an hour a day advising surveyors on values & providing comparable evidence. A good agent doesn't need to overvalue to get business.

CYBERCIDERSAVER

Interesting thread. If surveyors are valuing 10% less than MV, then what will happen to all the new builds THAT ARE PRICED EVEN HIGHER???

dizzie

Hi,

Just wondering whether it would be worth you looking on something like mouseprice or a similar website that could give you the actual sold prices of similar, recently sold properties in your area - e.g. anything in the same street sold recently?

Armed with this information, you could decide whether your buyer is offering you a fair price or not. If not, then if it were me, I would negotiate through their solicitor, and tell them that you have progressed with the sale of your property based on the price they offered you, and as such, this re-evaluation of their offer price comes as a shock. You could tell their solicitor that you are on a tight budget, and that if the progression of this sale is to be facilitated, there will have to be some give and take on both sides. Perhaps you could split the difference.

At the same time, consider where you are buying. Are those people in a chain? Have they found somewhere they really want? Could you explain that your buyers are renaging on their offer price because of the current financial climate, and whilst you would like to honour the exchange of contracts in three weeks time, the difference in the offer price will make this difficult, unless your seller would be prepared to take a slightly lower offer?

No wonder house buying and selling is rated as one of the most stressful things. You've got to negotiate carefully or you risk upsetting one of the parties into pulling the plug. When we moved 12 years ago, our buyer presented us with a 2 page list of things for which she wanted reductions in the house price. These were mostly things that were not to her taste and the list included a new front door ( she didn't like the style of the existing one) and an allowance so that she could employ someone to come in and check that the central heating/gas fires etc were all okay! On the other hand, the house we were buying needed a new damp-proof course, roof repairs and completely re-wiring whe the survey came back. She wouldn't move an inch on the asking price...Aahhh happy days (not).

Hope that you manage to sort things out and that your move goes smoothly.

dizzie

Hi,

Just wondering whether it would be worth you looking on something like mouseprice or a similar website that could give you the actual sold prices of similar, recently sold properties in your area - e.g. anything in the same street sold recently?

Armed with this information, you could decide whether your buyer is offering you a fair price or not. If not, then if it were me, I would negotiate through their solicitor, and tell them that you have progressed with the sale of your property based on the price they offered you, and as such, this re-evaluation of their offer price comes as a shock. You could tell their solicitor that you are on a tight budget, and that if the progression of this sale is to be facilitated, there will have to be some give and take on both sides. Perhaps you could split the difference.

At the same time, consider where you are buying. Are those people in a chain? Have they found somewhere they really want? Could you explain that your buyers are renaging on their offer price because of the current financial climate, and whilst you would like to honour the exchange of contracts in three weeks time, the difference in the offer price will make this difficult, unless your seller would be prepared to take a slightly lower offer?

No wonder house buying and selling is rated as one of the most stressful things. You've got to negotiate carefully or you risk upsetting one of the parties into pulling the plug. When we moved 12 years ago, our buyer presented us with a 2 page list of things for which she wanted reductions in the house price. These were mostly things that were not to her taste and the list included a new front door ( she didn't like the style of the existing one) and an allowance so that she could employ someone to come in and check that the central heating/gas fires etc were all okay! On the other hand, the house we were buying needed a new damp-proof course, roof repairs and completely re-wiring whe the survey came back. She wouldn't move an inch on the asking price...Aahhh happy days (not).

Hope that you manage to sort things out and that your move goes smoothly.

UK007BullDog

Its not what the buyer or seller want, but what the lenders want from the surveyors.

Surveyors are downvaluing by around 10% or even more.
Lenders are looking very hard at their profit margins and want to ensure if prices fall even more that they are not in negative equity.

I know of many of my customers where the property has been down valued more than even I thought and I know my area and prices.

Estate agents are not off the mark but surveyors are also feeling jitery as they do not want to be sued by new owners who went into negative equity, so they are building in a buffer to cover their backs.

CYBERCIDERSAVER

UK007BullDog wrote: »

Estate agents are not off the mark but ....

Estate agents are ALWAYS off the mark. Usually pricing something higher to get an instruction then reducing the value to get the sale...

An Estate agent near me has a "blog" (although it's not ACTUALLY on the web.. go figure.) In the latest riveting installment she claims the market crisis was, within a couple of days back to where it was.

No crisis at all then. Linda says so!

macaque_2

nick22abdn wrote: »

I think you'll find that the difference in valuations is beacuase the first two were carried out by unqualified estate agents and the last one by a chartered surveyor.

Estate agents are unlikely to be as accurate with their valuations for two reasons - firstly they want you to sell with them and are therefore likely to value high and secondly they haven't had 2/3 years worth of training as RICS people have.

What a load of cobblers. Accuracy has nothing to do with valuing property. Properties sell for what a willing seller is prepared to accept from a willing buyer. The starting point for the pricing process relies on such things as the type, quality and condition of the property and comparisons with similar properties in the same area.

Estate agents are wide boys who value properties for house sellers. Chartered surveyors are wide boys who value properties for lenders and buyers. They represent different interests and it can be no surprise that surveyors come in with numbers lower that estate agents.

It is also worth noting that Chartered surveyors like to quote low to protect their insurance premiums. They will never get sued for under quoting but they can be for over quoting.

home_alone

My daughter has just sold her house, an offer was accepted but about 2 weeks before exchange of contracts the buyer came back saying the valuation (mortgage) was 12K less than their offer, the EA told us to accept the lower offer as the buyer may pull out we went back and said we would lower 6K which was then accepted,we approached the seller of the house my daughter was buying and asked them to drop their price by 3K (half) they did. Its worth a try in these difficult selling times.

selectcase

YUP our buyer came round with the results of the survey and it had been knocked down 10% from the asking price but as we had allready dropped 7% there was no problem and I will be knocking off a further amount for essential repairs s0 in total about 8% from original asking price.

I does not worry me as we will be living in a static caravan while we rebuild the next place and save loads on rent etc