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Builder requesting 2nd valuation

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gridley
gridley Posts: 26 Forumite
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in House buying, renting & selling
The new build I want to buy has been downvalued by the bank valuer and the builders requested a report as to why. The builders are now paying for a resubmission of our mortgage application TO THE SAME BANK to get a second valuation in the hope that it will be valued to what they want... Help? Is this right? What should I do...

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  • eddddy
    eddddy Posts: 16,449 Forumite
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    You make it sound like the builder is doing this without your consent - but that would not be possible.

    So has your bank really agreed to ignore the current valuation and potentially accept another valuation - presumably from a different valuer?

    If the second valuation comes in higher, I guess it's up to you whether you proceed on that basis (or whether the first low valuation has made you think it's too risky).
  • GDB2222
    GDB2222 Posts: 24,673 Forumite
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    gridley wrote: »
    The new build I want to buy has been downvalued by the bank valuer and the builders requested a report as to why. The builders are now paying for a resubmission of our mortgage application TO THE SAME BANK to get a second valuation in the hope that it will be valued to what they want... Help? Is this right? What should I do...

    You should definitely go on getting valuations until you get one that suits your builder. It's not as if you'll have the mortgage to pay off for the rest of your life .....

    Seriously, there's a balance between being incredibly keen to get a roof over your head and overpaying so much it's a millstone round your neck.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • gridley
    gridley Posts: 26 Forumite
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    GDB2222 wrote: »
    You should definitely go on getting valuations until you get one that suits your builder. It's not as if you'll have the mortgage to pay off for the rest of your life .....

    Seriously, there's a balance between being incredibly keen to get a roof over your head and overpaying so much it's a millstone round your neck.

    I just feel that the builder is getting a second valuation I suit them. I don’t want to be overpaying and losing out when I sell on in the future. I know any property is a risk. Just feels a little off to me - they have been contacting managers at the bank and it’s almosy as if they are bribing them to make the valuation suit them. If the valuation comes back downvalued again it would be good for me because the builder will most likely drop the price for me.
  • GDB2222
    GDB2222 Posts: 24,673 Forumite
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    gridley wrote: »
    I just feel that the builder is getting a second valuation I suit them. I don’t want to be overpaying and losing out when I sell on in the future. I know any property is a risk. Just feels a little off to me - they have been contacting managers at the bank and it’s almosy as if they are bribing them to make the valuation suit them. If the valuation comes back downvalued again it would be good for me because the builder will most likely drop the price for me.

    You’re under no obligation to proceed, you know!
    No reliance should be placed on the above! Absolutely none, do you hear?
  • Typhoon2000
    Typhoon2000 Posts: 1,122 Forumite
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    gridley wrote: »
    I just feel that the builder is getting a second valuation I suit them. I don’t want to be overpaying and losing out when I sell on in the future. I know any property is a risk. Just feels a little off to me - they have been contacting managers at the bank and it’s almosy as if they are bribing them to make the valuation suit them. If the valuation comes back downvalued again it would be good for me because the builder will most likely drop the price for me.

    If you don't feel the property is worth the price you offered, it's time to move on and look elsewhere.
  • JoJo1978
    JoJo1978 Posts: 375 Forumite
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    Be cautious if the ‘price drop’ comes in the form of incentives that will allow you to fund a difference in the final valuation and the price you agree e.g. the developer offers to pay for your white goods or something.

    This sort of incentive probably won’t increase the resale value of the property when you come to sell. You’ll have overpaid in that instance.

    Do you not see the first valuation as an indication that you should be considering dropping your offer or walking away?
  • eddddy
    eddddy Posts: 16,449 Forumite
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    edited 2 December 2017 at 12:03PM
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    gridley wrote: »
    Just feels a little off to me - they have been contacting managers at the bank and it’s almosy as if they are bribing them to make the valuation suit them.

    Somebody is not telling you the truth - or you are jumping to incorrect conclusions.

    Your bank will not discuss your mortgage (or the valuation) with the builder/seller.

    Only you (and nobody else) can request a re-valuation. And if you do decide to request it, the bank may still say "no".


    Edit to add...

    I guess it's possible that your mortgage advisor is requesting it on your behalf - but if you don't want that to happen - just say so.
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