New Build - Mortgage Valuation lower than purchase price!! PLEASE HELP

tradetime

Haven't seen this posted yet, but maybe I've missed it.

Rightmove House Price Index m/m -1.2% Previous +1.2%
http://www.forexfactory.com/news.php?do=news&id=92753

AMILLIONDOLLARS

Clare

Are there any houses being resold on the estate? Do your research, check land registry for sale prices, check Estate Agents to see whether they are selling any of these houses, not everyone puts a board up!

Another thing to consider, it looks like a summer of discontent is heading our way, if this happens and people get pay rises above inflation, the BOE will not hesitate to raise interest rates, will you be in a postition to ride this out? Another factor to consider.

AMD

natman

Hi Clarre.

Just been thinking about your situation -
Any news at all?

clairey22

natman wrote: »

Hi Clarre.

Just been thinking about your situation -
Any news at all?

Hi,

Yes I have news! we have the keys and are in the process of getting it ready to move into (buying furniture etc).

In summary:

Advertised on rightmove 260K
Builders price on their website 230K
Builders said we could have it for 225,250K gross, 5% incentive takes it to 215K net
valuation was 200K
We offered 200K - was rejected by builders
waited 1 week
we agreed on 215 gross, 204,250 net after several conversations and days of waiting around etc.

In the end i'm happy. I think the property is worth what i'm paying for it. I had a 65K deposit and am not planning to sell for a long time as it will be my family home. Even if I do move, I would rent it out as its in a fantastic location.

Thanks for everyones comments they were very useful in helping me make my decision.

Clairey

Ps. In the space of 2 weeks the mortgage rate we were after went up 3 times! we missed out on the first rate (5.7%) but got the next one (6.10%) now it is 6.35%!!!

BettiePage

Hope you're happy in your new home.

wrightstar

congrats and well done.
You must be so excited x

natman

Yeah well done Clare. I know we wernt involved in your roller coaster of a ride, but your story was facinating to me and was so important.

In my opinion buying houses at the minute is really like a game of poker, no one wants to give in, people want a good deal, not be ripped off, but also builders need to make some money so they can build houses.
We have seen today WIMPEY Homes almost crash and lay off 100's of staff. This highlights no one is winning out there - builders arnt winning, buyers arnt winning.........

Your situation SEEMS like a win/win. your happy with your product, the builder made some money..........................I just hope it keeps that way

SouthCoast

Good luck.

Please update us when you have had the snagging done.

mrs_deadline

Thanks for coming back with the update - good result, pain about the mortgage!

Nashydred

This although a pretty old post was very helpful. Thanks for updating to the end.