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

simey

Hi Claire
I totally agree with Brit1234.
Do not complete the deal as house prices are in freefall.
I know you are impatient to own your own property but now is not the time to buy.WALK AWAY!!!!
Wait at least six months then review the situation.
You will be able to see how many thousands of £ you would have wasted,please be patient. Good luck.
Simey.

scrummy_mummy_2

Run...run away, save yourself now and don't pay later.
RUN RUN!!!!!!

clairey22

Hi all,

Okay, the latest is that my boyfriend was trying to speak to the head office all day and the manager is on site today so was not able to call him back apparently. He is going to call us back on Monday.

Claire

BettiePage

clairey22 wrote: »

Hi all,

Okay, the latest is that my boyfriend was trying to speak to the head office all day and the manager is on site today so was not able to call him back apparently. He is going to call us back on Monday.

Claire

They're stalling. Don't sign anything yet, until you hae the price reduced.

wrightstar

The same happened to me last week. Our agreed purchase orice was £190k then the survey came back at £180.
the builders had already offered a 5% deposit. So i was vewry nervous about re-negotiating on the price.
Anyway, I had some great advice from Kez100. doozer and many others on this site and went for it.
I managed to get it down to the survey price with the same incentive of 5% deposit.
Be brave and offer them less than the price, doint call them once youve made your new offer, let them call you!
Its hard to do but it works
Good luck xx

franklee

clairey22 wrote: »

I could easily rent at where I am now (the same development) but my rent is 1050 a month and that money is just going down the drain.

Paying interest on the mortgage is money down the drain also. Only a small part of the monthly payment goes towards paying off the loan. So I hope you take that into account when calling rent money down the drain Neither the rent or the mortgage interest is actually buying you anything long term, both are giving you the use of something, either the house to rent or the loan to buy the other house. Also you have a large deposit, don't forget you will be losing the interest you are currently getting on that when you buy.

That said I can understand why you want to buy, renting gets to be a pain sometimes, but it may well be worth waiting a bit longer, especially to buy a new build

But if you really do want to go ahead don't underestimate your value to the builder. You are a FTB, have nothing to sell so are chain free and you have a large deposit. You are the ideal buyer. Even if others want to buy that house I doubt they are a a position to proceed. Now the days of 100%/95% mortgages are over FTBs are scarce, they are all off saving up their deposit. Time to get tough or pull out

Bismarck

Snooze wrote: »

Good!!!!!!!!

Like others have said, you're the one holding them by the bollox so don't be afraid to squeeze them a bit to get what you want. Personally I wouldn't be buying at all right now because in 2 years time all house will be worth £2.50 but if you insist on going through with it then - based on the mortgage valuation - I'd offer £180k and work up (to £200k max) from there. The longer you hold out, the more the value will drop, so don't forget that and if they mess you around keep knocking a grand off (quoting the rapidly declining market) until they accept.

You probably think this approach is taking the !!!! somewhat but it really is the best way of going about this and I'm sure others on here will agree too.

Rob

I doubt there will be another time in your life that you can save so much money as at this point.

If you'd never seen the house before, or negotiated any deal what would you offer for the house now? What would a person off the street buy it for? That person is the one who the building company would have to try and sell your house to....their bottom line here is the next person's willingness to pay....PLUS they're desperate for cash.

£180K is attainable here or as others have said, the prices could easily drop to below that in 6 months...

good luck but I hope you can look back at this and reflect on the negotiations that could save you thousands with pride not regret.

SurreyChick_2

Hi, I have the exact same situation - I just received the valuation of the property I am buying today in the post (Saturday). The property purchase price is £307,400 (the builder has offered to pay the 3% SDLT and a 2.5% deposit). However the Valuation has come back at £290,000. The property is in the area of East Grinstead, and it is a new build as well. Fortunately I made my reservation fee subject to mortgage approval. The thing is, I really love the flat, but I am taking on board all of the above feedback and am thinking of taking the advice to walk away and rent for another 6 months. I will give my broker a call on Monday to see if he can get the developer to bring the price down to £290,000 (to include the incentives), but if they won't do it I am not sure what to do... if the valuation in lower than the agreed purchase price, does it mean that the lender will only lend on the valuation price? If so, then I have a problem anyway because I wouldn't be able to come up with the extra money. I have applied for a 90% mortgage on the purchase price of £307,400. Any opinions?

Kez100

Why should you accept 290 to include incentives when before you accepted 307 less incentives?

However,that would be academic to me : New build flat.....I would walk away.

SouthCoast

These new build flats have been on the market for over a year.

Draw your own conclusions.

http://www.berkeleyhomes.co.uk/index.cfm?articleid=1472

http://oceanique.mjh-homes.co.uk/

P.S. More here:

http://www.littlehamptongazette.co.uk/news/Rush-to-build-apartment-blocks.4185065.jp