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

Kez100

The valuer would, I hope, not change his mind. Fact is, the market has changed in recent weeks and so the valuations should bear no resemblence to what someone was prepared to pay even a few weeks ago.

For a valuer - in this market to increase his valuation following a phone call from the seller he is going to be on pretty stony ground professionally - in my view. He is acting for you/your lender not the seller.

I feel it was a mistake yur husband letting them know that the valuer said there were no comparables but it's a bit late now. I just hope the valuer won't budge from his already written valuation and give you power to your elbow.

If he did budge, I would be considering a second independant valuation. It may cost a few hundred pounds but I would not accept paying thousands more for something that simply altered when the seller called them.

Doozergirl

RHemmings wrote: »

I wouldn't use the word "undervalued". It sort of implies that the property is worth more than the valuation, but the surveyor has been conservative. I think it likely that the property isn't worth more than the valuation, and may well be worth less in the future.

I'm going to change it. You're probably right.

Doozergirl

clairey22 wrote: »

Hi all,

My other half has rung the head office and they have said to him that they want to provide the broker with some comparables (I think that means other houses they have sold on the development for more money). And they will get back to us later on today.

It's already been said but even in good times it's hard to get a valuer to change their mind. I've managed it by a little but not to what I felt it was worth. I sold the place a couple of months later for £30,000 more than the valuation but he would only come up £5000.

In this market, they'll be very lucky to get it increased significantly. He must have really felt it wasn't worth the price as you've a good deposit to cushion the lender.

tradetime

For a valuer - in this market to increase his valuation following a phone call from the seller he is going to be on pretty stony ground professionally - in my view. He is acting for you/your lender not the seller.

I'm inclined to agree with this, to which end if the valuer changed their view, I'd like that in writing, from the valuer with their explanation of the revision. Whether that would ever be worth the paper it was written on in the future I don't know, but it would make me feel better in the meantime

clutton_2

"looking for comparables" is just a time wasting ploy on the builders part.

what i would do is tell your solicitor that your offer is now £189,950 - and let him negotiate for you - rather pay him for a couple of letters/phone calls than lose thousands !!

AMILLIONDOLLARS

The Valuer should be working for both you and your lender, as someone has already stated he would need some prettying convincing evidence to change his mind, especially as he has to put a revised valuation to your lenders. Whatever prices the builders sold their houses for a couple of weeks ago will bare no relation to now.

Its a well known fact that new builds always drop fastest in this sort of situation. Take Barratts, a year ago their share price was £11 this week its hitting 81p that should tell you something about the current market.

AMD

Sisyphus

Your judgement may be clouded by the fact that you're so keen to buy your own house. They will definitely recognise this and cajole, threaten, and also feign indifference to a much lower offer from yourself. They will tell you that you will lose your £2000. Keep your cool, and delay.
The surveyor would have valued it higher if it were worth more. But the housing market is in dire straits. The house builders share prices have fallen, in some cases more than 80% in just over a year. They are desperate for cash. They have probably already banked on this sale and simply cannot afford to have more inventory on their books.

You hold all the Aces and they know it.

SouthCoast

The value of the property has dropped by £57 since this thread started!

poppysarah

When they say they've sold every other property on the development what they mean is they've sold 3 of them to some dodgy landlord geezer.

Ask when and then look up land registry figures

mrs_deadline

I agree with Sisyphus and I'd give the valuer's comments some very serious thought.
He wouldn't have said it was the least desirable plot without good reason. While the OP is happy with the drawbacks because already living happily on the estate, that doesn't stop the value being seriously blighted by those issues in other people's eyes.Things like being the last house before the railway or commercial premises can make even the most beautiful house very hard to shift at a later date - no good quoting comparables at people then, if it just isn't where they'd choose to live.