PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

House we like already under offer by someone else but there’s an issue

Options
2

Comments

  • Fisa002
    Fisa002 Posts: 145 Forumite
    Options
    Annie35 wrote: »
    IF the vendor was okay with selling at the lower valuation surely they would continue the sale with the current buyers, no?

    Not sure what you mean by this. I think it’s the buyers that have been given a lower valuation by either the conveyencer or more likely the bank right? If the vendor was given a lower valuation initially they would market around what they and the EA think it was worth right?
  • eddddy
    eddddy Posts: 16,441 Forumite
    First Anniversary First Post Name Dropper
    edited 12 January 2018 at 7:31PM
    Options
    Annie35 wrote: »
    IF the vendor was okay with selling at the lower valuation surely they would continue the sale with the current buyers, no?

    Fisa002 wrote: »
    Not sure what you mean by this. I think it’s the buyers that have been given a lower valuation by either the conveyencer or more likely the bank right? If the vendor was given a lower valuation initially they would market around what they and the EA think it was worth right?

    Probably easier to illustrate with an example:

    Say...
    - The buyer has offered £255k
    - The buyer's lender has valued it £240k

    If the vendor was prepared to accept £240k - they would sell to the current buyer. (They would have no reason to sell it to you for £240k)
  • Fisa002
    Fisa002 Posts: 145 Forumite
    Options
    eddddy wrote: »
    You can read it many different ways, but I'd suspect that the current offer is £250k - or maybe higher.

    i.e. The EA wants to get you into game with an offer of £250k and get you excited about the property, then tease you upwards.

    Plus, if you offer (even if it's too low), the EA can scare the other buyer by saying that somebody else is chasing the property.

    In general, EAs don't like gazumping - it gives them extra work, it delays the sale, and the extra few quid in fees aren't worth it.

    The main thing the EA wants is the quickest possible sale, so they want you ready to jump in asap, if the current buyer drops out.

    But obviously, if the current buyer's lender has down-valued the property, your lender might as well. Would you buy it, if your lender down-valued?

    Thanks I didn’t really think about the EA trying to get it even higher. I guess he knows what my budget was when I looked around the other two houses.

    Would I buy it if the lender down valued? I don’t think I would offer at 250k it would be more towards my max budget. I guess most people have this risk when purchasing a house ‘what if the lender down values’
  • Fisa002
    Fisa002 Posts: 145 Forumite
    Options
    eddddy wrote: »
    Probably easier to illustrate with an example:

    Say...
    - The buyer has offered £255k
    - The buyer's lender has valued it £240k

    If the vendor was prepared to accept £240k - they would sell to the current buyer. (They would have no reason to sell it to you for £240k)


    Ah got it Eddy. Thankyou, it makes sense. I guess I should just wait until next week and see what happens just in case. You never know right?
  • eddddy
    eddddy Posts: 16,441 Forumite
    First Anniversary First Post Name Dropper
    Options
    Fisa002 wrote: »
    I guess most people have this risk when purchasing a house ‘what if the lender down values’

    Yes.

    But in this case it has already been down-valued once. So it's very likely to be down valued again.

    Quite a few lenders use the same valuation companies, so it might even be the same valuer who is asked to value it again. (And he/she won't change their mind on the value.)
  • Fisa002
    Fisa002 Posts: 145 Forumite
    Options
    And hence that’s why he ( the EA) laughed when I asked how much the valuation was for right?
  • Fisa002
    Fisa002 Posts: 145 Forumite
    Options
    So if it’s likely to be down valued again, and again, surely the Vendor is likely to drop the asking price or not? And why can’t the EA give an idea of what the valuation has come in at? Grr this is so frustrating but really appreciate the responses !!
  • goodwithsaving
    goodwithsaving Posts: 1,311 Forumite
    First Anniversary Name Dropper First Post
    Options
    Fisa002 wrote: »
    So if it’s likely to be down valued again, and again, surely the Vendor is likely to drop the asking price or not? And why can’t the EA give an idea of what the valuation has come in at? Grr this is so frustrating but really appreciate the responses !!

    Because the house is UNDER OFFER and it is none of your business at this stage. It is between the vendor and buyer.
  • Fisa002
    Fisa002 Posts: 145 Forumite
    Options
    Apologies if I sounded rather keen. I just want to be in a good position with an offer should I get a call next week.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    First Anniversary Name Dropper First Post
    Options
    Fisa002 wrote: »
    So if it’s likely to be down valued again, and again, surely the Vendor is likely to drop the asking price or not? And why can’t the EA give an idea of what the valuation has come in at? Grr this is so frustrating but really appreciate the responses !!

    The vendor doesn't need to drop the asking price. The difference is in the valuation that the mortgage company has given not what someone is willing to pay. If someone has a big deposit they can make up the difference between the offer and valuation with cash and take out a smaller mortgage.

    Or someone could come along and offer cash. If they don't need a mortgage and they want that house then there is no problem.

    The best thing to do is to forget about this house because it is most likely to be sold for more than you can afford.

    Make sure that you only look at houses within your budget.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards