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  • FIRST POST
    • Ironek
    • By Ironek 3rd May 18, 11:48 PM
    • 2Posts
    • 0Thanks
    Ironek
    Home Buyer’s report valuation over 8% lower than the offer
    • #1
    • 3rd May 18, 11:48 PM
    Home Buyer’s report valuation over 8% lower than the offer 3rd May 18 at 11:48 PM
    Hi everyone,

    We’re planning on buying our first house and have just had the Home Buyer’s survey, which has highlighted some level 2 & level 3 issues (tried attaching screenshots of the report but it wouldn’t let me) and has valued the house at 18k less than we offered - the house was on the market for £215000, we offered £208000 and the valuation on the report was £190000. Also, the house was bought for £160000 in 2016.
    We’ve applied for a 90% mortgage and are still waiting for the lender’s valuation. However, having received the Home Buyer’s report should we go back to renegotiate the price? If so, how much should we offer? Should we go at the valuation suggested on the report? Also, would it be handy sending the report to the seller (the house was on the market with Purple Bricks, who encourage direct contact between sellers and buyers)?
Page 1
    • Candyapple
    • By Candyapple 3rd May 18, 11:57 PM
    • 2,943 Posts
    • 2,290 Thanks
    Candyapple
    • #2
    • 3rd May 18, 11:57 PM
    • #2
    • 3rd May 18, 11:57 PM
    You have 3 choices:
    1. Pay the extra £18k out of your own pocket if you like the house that much
    2. See if the seller is willing to negotiate the price down to either £190k or possibly meet you halfway, in which case you would still have to pay an extra £9k out of your own pocket
    3. If the seller refuses to negotiate then walk away and put the costs you have incurred such as for the survey down to experience and continue house hunting
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • Lioness Twinkletoes
    • By Lioness Twinkletoes 4th May 18, 8:08 AM
    • 1,343 Posts
    • 4,770 Thanks
    Lioness Twinkletoes
    • #3
    • 4th May 18, 8:08 AM
    • #3
    • 4th May 18, 8:08 AM
    Has it really increased more than £30k in 2 years???
    • eddddy
    • By eddddy 4th May 18, 8:20 AM
    • 6,899 Posts
    • 6,829 Thanks
    eddddy
    • #4
    • 4th May 18, 8:20 AM
    • #4
    • 4th May 18, 8:20 AM
    Wait to see what your mortgage lender values the property at - to see if it's different.


    You've commissioned the homebuyer's survey, so the surveyor will act in your interests.

    When instructed directly by the buyer, many surveyors will emphasise (exaggerate?) problems, and value low - so that you can use the survey as a 'negotiating tool' to get a price reduction.

    By all means use the survey to negotiate a lower price, but also bear in mind whatever valuation your lender gives.

    (You might get a clearer opinion over the phone, if you give your surveyor a quick call.)


    Edit to add...

    I think Candyapple (above) is thinking of a mortgage lender's valuation, not a valuation commissioned by you.
    Last edited by eddddy; 04-05-2018 at 8:33 AM.
  • PurplebricksUK
    • #5
    • 8th May 18, 10:18 AM
    • #5
    • 8th May 18, 10:18 AM
    Good Morning Ironek

    Hope you are well. Have you made a decision on what you would like to do? More than happy to help with this if you would like to send a message over with your details/the property details?

    Thanks!

    Debbie
    Last edited by PurplebricksUK; 08-05-2018 at 10:20 AM.
    Verified Company
    I am a verified representative of PurplebricksUK. MSE has given permission for me to post in response to queries about the company so that I can help solve issues. You can see my name on the Verified Companies list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE.
    • eddddy
    • By eddddy 8th May 18, 10:38 AM
    • 6,899 Posts
    • 6,829 Thanks
    eddddy
    • #6
    • 8th May 18, 10:38 AM
    • #6
    • 8th May 18, 10:38 AM
    Good Morning Ironek

    Hope you are well. Have you made a decision on what you would like to do? More than happy to help with this if you would like to send a message over with your details/the property details?
    Originally posted by PurplebricksUK
    @Ironek - obviously, you need to think carefully before contacting any company reps through this board.

    If you PM the estate agent with your name and details, they will find out who you are - and match you to your post above, and any future posts using that username.

    If, for example, you want to discuss your negotiating strategy on this board (e.g. "I'll offer x initially, but my limit is y."), you might prefer the estate agent not to know who you are.
    Last edited by eddddy; 08-05-2018 at 10:43 AM.
    • Crashy Time
    • By Crashy Time 8th May 18, 1:49 PM
    • 6,519 Posts
    • 2,440 Thanks
    Crashy Time
    • #7
    • 8th May 18, 1:49 PM
    • #7
    • 8th May 18, 1:49 PM
    Has it really increased more than £30k in 2 years???
    Originally posted by Lioness Twinkletoes

    No, offer them 155k, and even then you will still be over-paying.
    • Ironek
    • By Ironek 14th May 18, 11:00 AM
    • 2 Posts
    • 0 Thanks
    Ironek
    • #8
    • 14th May 18, 11:00 AM
    • #8
    • 14th May 18, 11:00 AM
    Thank you for all the replies and advice.

    We’ve now received our mortgage offer for the 90% of the original offer. However, they’ve not sent us their valuation (would they only do that if the valuation didn’t meet the amount we offered?).

    We want to try and negotiate the price a bit. We’ve been dealing directly with the seller up to this point so I feel like we should negotiate directly with them rather than going through the EA though.

    On the other hand we’ve reread the report many times now and the things that need doing immediately according to them are mostly the things that they were not able to investigate fully, eg.:

    ‘Electrics.
    The property is connected to the mains electricity supply. The meter and dated fusebox are located in the hall.
    The system is dated and you should budget for general upgrading works.
    Regulations concerning electricity safety are constantly being improved. The IEE regulations recommend that installations are tested every 10 years and upon change of occupancy. We do not know when this system was last tested ! a test is probably now due.
    If you wish to obtain information as to the safety of the installation and how it can be improved, then you will need a specialist report.
    In the absence of a current test certificate the installation should be checked (prior to exchange of contracts) by an NICEIC registered electrician who should carry out any necessary repairs or upgrading works to comply with current regulations.’

    Or

    ‘G6 Drainage
    The property is assumed to be connected to the main foul sewer but this point obviously could not be checked.
    We were unable to locate any inspection chambers within the site/gardens and cannot advise further.
    The drains and above ground pipework have not been tested. We cannot confirm that they are free from leaks. It is important that drains are maintained without leaks for when leaks occur, close to foundations, they could disturb the stability of the building. If you require further and better information in this respect, then a specialist test and inspection will be necessary.
    Some of the wastes discharge into a hopper head and also to an open gulley. The hopper and gulley should be kept clear of debris at all times and will need to be regularly inspected. Blocked hoppers, particularly, are a regular source of damp penetration in buildings’

    Therefore I’m not really sure whether we should be negotiating the price or not.
    Last edited by Ironek; 14-05-2018 at 1:44 PM.
    • Crashy Time
    • By Crashy Time 14th May 18, 2:03 PM
    • 6,519 Posts
    • 2,440 Thanks
    Crashy Time
    • #9
    • 14th May 18, 2:03 PM
    • #9
    • 14th May 18, 2:03 PM
    Has it really increased more than £30k in 2 years???
    Originally posted by Lioness Twinkletoes

    If sentiment and cheap credit were in abundance, and there wasn`t the "threat" of rising interest rates, well maybe....probably in the nutty world of UK property, but in this market probably not.
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