House price question

thecrater

Hello All,

I am a first time buyer and I have recently had my offer for a flat accepted for £173,000 in Wembley, London. I went through with arranging to purchase the flat and had the property valuated. The valuation report went to the bank and I was told that my copy will be in the post today.
Yesterday my solicitor informed me that he's received a copy of the mortgage offer and had contacted the seller's solicitors, so things are pretty much going ahead as planned.

Today, however, I received my mortgage offer from the bank and when I looked through the details of the offer I noticed that the property valuation was £170,000 which is £3000 less than what I have offered. As I haven't yet received the valuation report myself I’m a little worried about what this means for the future when I decide to sell the flat. Is this going to cause me a problem in terms of the price of the flat especially in these turbulent times?

Any advice would be most appreciated.

kevinyork

In simple terms you should go back and lower your offer based on the Valuation. Dont pay more. The seller would be silly to loose you as a buyer in this market for the sake of a few thousand.

If they dont budge you are ultimately paying more than a professional surveyor believes it to be worth. The mortgage offer will therefore be lower than you required and you will have to increase your deposit to fund the difference.

Look at it as a positive. You should pay less for your purchase.

nollag2006

These valuation reports are fairly subjective and always err on the conservative side. A discrepancy of 2% is not material. If it was 10%, I would be more concerned.

£173k for a flat in Wembley sounds like a great price.

Good luck with your purchase

Mac_Sami

As kevinyork says, go back to the seller and lower your offer based on the valuation. Whilst it might be a small difference, this works in your favour, as the seller should be keen to sell the property, given the current climate and also how far in the process you are. A few thousand pounds difference is not a lot for the seller to lose.

mr.broderick

kevinyork wrote: »

In simple terms you should go back and lower your offer based on the Valuation. Dont pay more. The seller would be silly to loose you as a buyer in this market for the sake of a few thousand.

If they dont budge you are ultimately paying more than a professional surveyor believes it to be worth. The mortgage offer will therefore be lower than you required and you will have to increase your deposit to fund the difference.

Look at it as a positive. You should pay less for your purchase.

The old loose/lose mistake raises it's ugly head again....

mr.broderick

kevinyork wrote: »

In simple terms you should go back and lower your offer based on the Valuation. Dont pay more. The seller would be silly to loose you as a buyer in this market for the sake of a few thousand.

If they dont budge you are ultimately paying more than a professional surveyor believes it to be worth. The mortgage offer will therefore be lower than you required and you will have to increase your deposit to fund the difference.

Look at it as a positive. You should pay less for your purchase.

That made me laugh...

mr.broderick

thecrater wrote: »

Hello All,

I am a first time buyer and I have recently had my offer for a flat accepted for £173,000 in Wembley, London. I went through with arranging to purchase the flat and had the property valuated. The valuation report went to the bank and I was told that my copy will be in the post today.
Yesterday my solicitor informed me that he's received a copy of the mortgage offer and had contacted the seller's solicitors, so things are pretty much going ahead as planned.

Today, however, I received my mortgage offer from the bank and when I looked through the details of the offer I noticed that the property valuation was £170,000 which is £3000 less than what I have offered. As I haven't yet received the valuation report myself I’m a little worried about what this means for the future when I decide to sell the flat. Is this going to cause me a problem in terms of the price of the flat especially in these turbulent times?

Any advice would be most appreciated.

If the surveyor would have valued it at £176k and the seller then asked for a further 3k what would you do?

JonnyBravo

mr.broderick wrote: »

The old loose/lose mistake raises it's ugly head again....

It's literally at plague like levels

nollag2006

mr.broderick wrote: »

If the surveyor would have valued it at £176k and the seller then asked for a further 3k what would you do?

I think the purchaser would be unlikely to divulge this information to the seller.

If you felt it was worth an extra £3k, then why not.

The real question is, do you want to risk the whole transaction for a notional 2% difference of opinion

I know I wouldn't. Life's too short ...

mr.broderick

nollag2006 wrote: »

I think the purchaser would be unlikely to divulge this information to the seller.

If you felt it was worth an extra £3k, then why not.

The real question is, do you want to risk the whole transaction for a notional 2% difference of opinion

I know I wouldn't. Life's too short ...

Obviously but the point i was making was that its all opinions, i never really liked the idea of using a survey to renegotiate but has someone mentioned here in this market might be worth a punt.

Markyt

mr.broderick wrote: »

The old loose/lose mistake raises it's ugly head again....

As does the old its / it's dilemma ...