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Massive down-valuation on a new build

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  • lewisa
    lewisa Posts: 301 Forumite
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    Atreyu107 wrote: »
    Thank you, snide cynicism is exactly why I come to the MSE forums...

    What you are continuing to ignore (presumably because it undermines your world-view) is that being greedy and opportunistic is all good and well when you're dealing with people who are flush with cash.

    It doesn't work as well when the person you're trying to screw out of a few extra bob doesn't have a few extra bob to be screwed out of in the first place.

    But it does exactly what artfuldodger said by lowering the barrier to entry and increasing the available buyer pool.

    *(No cynism intended, no dog in the fight, no world view on it)
  • hazyjo
    hazyjo Posts: 15,470 Forumite
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    Pixie5740 wrote: »
    How has this Chartered Surveyor or any other Chartered Surveyor royally screwed you over?
    Indeed. Might have done you a massive favour!


    Is it a one-bed flat, or bigger? Could understand if it's a one bedder.


    Think it was asked earlier, but how much are 'second hand' similar properties selling for? (Forget the SO bit for now, just focus on figures because that's what the surveyor will be focusing on. They don't want you to spend £75k more than others are worth.) How well do you know the area you're buying in? For example, that would be an awful lot for a flat in an up and coming area in London.
    2023 wins: *must start comping again!*
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Atreyu107 wrote: »

    This is now the second time a Chartered Surveyor has royally done me over on a house purchase, and the lack of accountability is astonishing.

    Thanks all,
    A


    What makes you think they've "done you over" ? Its equally likely they are doing you a favour.


    As they are brand new its quite possible that when you come to resell you'll take a big hit, unless helped out by house price inflation working in the opposite direction.


    Plus, there is the possibility that they are overpriced, irrespective of being new, but new doesnt help. Theres a big estate near me where there was big rumpus recently some houses that were priced at £900k :eek: the last few to sell were reduced to £750k or so. As you can imagine the people who had bought at £900k were not best pleased which was why it made the local press (and is why i know about it)
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Atreyu107 wrote: »
    Thank you, snide cynicism is exactly why I come to the MSE forums...

    What you are continuing to ignore (presumably because it undermines your world-view) is that being greedy and opportunistic is all good and well when you're dealing with people who are flush with cash.

    It doesn't work as well when the person you're trying to screw out of a few extra bob doesn't have a few extra bob to be screwed out of in the first place.


    Looks like you potentially have 3/4 of £75k to be screwed out of...
  • Atreyu107
    Atreyu107 Posts: 96 Forumite
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    It's a two-bed flat, in a block where two other two-bed units have been valued and sold at the offer price.

    I've spoken to the HA and they've said that they were not asked for completion statements as comparables. They have another valuation booked for another two-bed today, and will await the results next week to hand over to my Mortgage Advisor to appeal the valuation. If this doesn't work I'll switch lenders.

    I'd like nothing more than the flat to be worth £75k less, as AnotherJoe says, I could do without another £18.75k to pay interest on. But I'm equally prepared to pay what I, and it seems at least two other RICS surveyors, agree is a fair market value for the property.
    I work in the financial services industry but I am not a financial adviser. I do not give financial advice. Anything I say here is for discussion purposes only and should not be construed as advice.
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    How do you know they sold at the offer price?

    How do you know that other buyers didn't have the cash to make up any shortfall?

    At the end of the day the valuer appointed by the lender is looking after their interests. You are quite free to pay for your own independent report.
  • hazyjo
    hazyjo Posts: 15,470 Forumite
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    Are you sure they both sold at the asking price? Who told you that?


    Maybe they had the cash to still buy them despite a down-valuation.


    Is the whole flat owned by the housing association, and does that mean there will be a mixture of private buyers and some HA tenants? (Excuse my ignorance if that's what it is, I don't know how these things work!) But I imagine would be likely to affect the mortgage if that's the case.
    2023 wins: *must start comping again!*
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    Housing Association are being greedy - obviously the real value is £475K and they want the "shared" bit on top of the real market value - they pay a fraction of the build cost anyway so its a double win win for the HA - so a quad win.

    Suggest you lower your offer accordingly or risk being in negative equity from day 1 - never a good thing especially your first home, or look to buy elsewhere.
  • WillimS
    WillimS Posts: 9,111 Forumite
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    I am not familiar with these shared ownership schemes, is there a time scale you have to keep them before you can sell them?, if you do sell them can you ask your own price? are they on a leasehold basis?, sorry to be so vague but I have never read into them.
  • Mutton_Geoff
    Mutton_Geoff Posts: 3,819 Forumite
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    Atreyu107 wrote: »
    They have another valuation booked for another two-bed today, and will await the results next week to hand over to my Mortgage Advisor to appeal the valuation. If this doesn't work I'll switch lenders


    Be careful, you seem to be working towards disbelieving professional advice on the value of what you are trying to buy and finding ways to raise more money rather than buy a flat for the correct price in today's market.
    Signature on holiday for two weeks
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