Valuation Problem

gener8or

We recently agreed a sale of our house at 166k. Sale going through OK, but we heard from buyer, that their mortgage provider had survery and valued house at £160k and wont lend he the 6k she needs

We checked land registry figures (all recent builds on estate) and last 2 sold for 167k and 168k last year.

We think he has made a mistake, anybody know of a way forward?

Thanks

minimike2

They could ask thier lender / valuer to look at comparables - you would need to make sure that the houses are of the same standard, post code, style, size etc. You will find now that some valuations are coming back a shade lower than this time last year however, as prices in some areas have fallen a little.

Of course the other option is to lower your agreed sale price. I suppose it depends how desperate you are to move / sell.

beecher

Surely the buyer is putting down a deposit and so doesn't need a mortgage of £166k?

I don't think figures from last year mean very much at the moment, and a drop of slightly less than 5% from then is probably about right. I suppose you either accept a 6k reduction or they pull out of the sale, if it comes to it.

gener8or

minimike2 wrote: »

They could ask thier lender / valuer to look at comparables - you would need to make sure that the houses are of the same standard, post code, style, size etc. You will find now that some valuations are coming back a shade lower than this time last year however, as prices in some areas have fallen a little.

Of course the other option is to lower your agreed sale price. I suppose it depends how desperate you are to move / sell.

The buyer is happy to pay 166k but the lender have lowered the amount they will loan her based on the valuation. The buyer has now come to us for ideas as the 6k difference causes him a problem.

Kez100

Well, if he hasn't got the 6k and you want the sale you'll have to negotiate or lose him. Would he have enough to meet you somewhere in between? Could you get the owner of the house you are buying in on this and agree a small reduction too, to help keep the chain together?

Our survey on the house we live in came back with a mortgage retention of £1000 for works (in 1994). We mentioned it to our vendor and she agreed to pay for the work and give us the receipts/guarantees and so no retention was witheld and the sale went ahead. If she hadn't the salewould have fallen through. We had just saved ourselves out of negative equity to get the chain in place - we didn't have a bean more to spare.