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

Sisyphus

SurreyChick wrote: »

Yeah the manager I've been trying to get a hold of is "onsite" as well...I think it's more like she's buried her head in the sand...

Well, there's a gorgeous flat closeby to where I was going to buy...it is for rent and will cost the same as the mortgage payment would have cost, and it's less risk, there is less money to pay upfront, and I can sit and watch prices take a nosedive and maybe pick up a bargain when it hits rockbottom...fingers crossed anyway...

Clairey22 - can you let me know what happens? I'll keep you posted on my situation as well.

by gorgeous, do you mean just as nice/nicer than the place you were going to buy?

were your mortgage payments 'interest only'?

scrummy_mummy_2

Oil has just reached nearly $140 a barrel....the crunch will really start to bite later this year (Mervin King reckons Q3) and even the gazunderers who are offering £20K or even £30K under current asking prices are going to be staring down the barrel of negative equity this time next year.
Celcius in Bracknell is just round the corner from me and Fairview are offering ridiculous 'incentives' (for incentives read "Christ, it's all going wrong, how do we offload our remaining stock before we get stung!) to offload the remaining properties sharpish...even bearing this in mind, jumping in now is insane in my view.
When property rises in value we all 'learn' very quickly and accept prices are rising accordingly but, when the converse happens it takes AGES for us to all accept that the writing is on the wall and prices are falling. True head in the sand approach.
If you are looking to buy a home that you will stay in for 25 years, this argument on home prices is academic to a degree because you can see out a couple of 'cycles' but those on lower rungs need to be careful because life has a nasty habit of chucking enexpected stuff at you like redundnacy, babies, divorce, bereavement, promotions and moves etc.
Anyone buying now (my tenants included!! who just freefall from one disaster into another!) who cannot see that prudence is the best course of action currently, is gonna get burnt. I'm not doom mongering, just trying to point out it is happening. I lived through the last property issue in the 90's and hung on to my home by the teeth but at quite an emotional cost to me....it's not just about the money guys.

All will come to he who waits....think on. What seems like a good deal now, will seem like lunarcy in 12 months time.

Act in haste and repent at leisure...God I sound like Dot Cotton don't I? Still, there is much to be said for those old sayings eh?

SurreyChick_2

There is a happy ending to my story...

I finally got a call from the manager at the developer company...she finally got in touch with the Area Sales Manager and they have agreed to reduce the price to the valuation amount and to include all previously agreed incentives ) So, I get a flat that I am delighted with for £290K with 3% SDLT and 5% deposit included and lots of upgrades...

My opinion on puchasing property in today's unstable market.......
The thing is, I need a roof over my head, and plan to stay in the property for at least 5 years (and if I do move out I would keep it and rent it out anyway). I am happy with the location, happy with the quality of the build, happy with the mortgage amount and monthly payments, and it's cat-friendly (I have 2 cats and it is very difficult to find a rental that will allow pets).

Sorry to have a rant, but I have had some bad landlords and am really tired of other people controlling whether I have a roof over my head and being able to evict me whenever they feel like a change of tenant (my current landlord tried to evict me when I reported that the washing machine had broken during a wild & psychotic spin cycle (it almost took flight), and they went to great lengths to harrass and evict me...I managed to stay in the place but am on thin ice - I think this is unfair because I'm a good tenant, pay a lot of money per month, I have a good job, I'm quiet and always pay on time...) Because of these problems I would give anything to have my own roof over my head where no one can hassle me...and my 2 cats can live in peace...

I am thrilled about this ending, I hope it goes as well for Clairey22!

m1ntie

Well done - glad it turned out well for you.

clairey22

SurreyChick wrote: »

I hope it goes as well for Clairey22!

The latest with me is that we have submitted our offer of the valuation price less incentives to the builders. The manager called my boyfriend today and said he would knock 3K off the price and then later said how about 5K! This would take it down to £209,000 which is still 9K over the valuation of £200,000. We are going to leave it now and wait for them to contact us.

Claire

Kez100

That's what I'd do too. May even consider puling out completely but certainly wouldn't accept anything less than original agreed offer and incentives off of valuation.

AMILLIONDOLLARS

When the manager does come back you, ask him if he were buying this house and the valuation came to less than what he's offering to sell it for, would he buy the house? H*ll No, so why is he expecting you to do??

Be prepared to walk, mind you if they leave it for very much longer, you'll need another valuation, then they'll be up a creek without a paddle:D

AMD

Kez100

As Amillion above says, when the next months HP data comes through - let's say it is a drop of 2% I would revise my offer to valuation less incentives less 2%.

AMILLIONDOLLARS

Any word yet Claire?

AMD

Tassotti

New things are always a risk..

Buy a new-build flat...Once you have the keys, prepare to lose 30% of price

Same with a new car

Way it is

Because it's new-build doesn't mean no problems...probably more