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House valued MUCH lower than we offered!

(39 Posts)
JustWhat Tue 17-Oct-17 08:09:53

Anyone have experience of this?

House we offered £200k for has been valued by the lender’s surveyor at...£170k! shock

We had started to think it was maybe slightly overpriced and expected to maybe have to renegotiate by a little bit after the valuation but by £30k!

Considering the vendor wanted £208k and we had to wait a while for him to be persuaded to come down to £200k, I can’t see him bringing his asking price down by another £30k!

We love that house and it looks like we’ll have to pull out now as we can’t afford to find the rest ourselves on top of what the lender will now lend. Sigh...

Surely the vendor will have this issue again though further down the line? Any experiences to share?

MrsZB Tue 17-Oct-17 08:11:43

Just talk to the agent and see what they say. You have a clear case for re-negiotating the price.

SquashedInTight Tue 17-Oct-17 08:14:01

He won't be able to sell to anyone over what the valuation says. He will know that. Go back to the agent, explain what has happened and offer £170k.

BrieAndChilli Tue 17-Oct-17 08:14:28

The vendor will probably hold out this time but after the 3rd or so buyer who’s survey also comes back 170k they will probably admit defeat. Doesn’t help you now though!
How much of your dream house is it?
Can you find any on top? Eg go to £175k to show willing?

TuftedLadyGrotto Tue 17-Oct-17 08:17:06

Doesn't always work like that. We lost a sale on our house due to low valuation. We couldn't afford to sell at the lower price. However a different buyer, different lender and valuation put it not only above the premium jousting valuation (which was £15k under agreed price) but another £15k above that again.

Valuations vary massively. It's rubbish. You can appeal if you can show similar houses in the area selling for similar prices in last 3 months.

RoganJosh Tue 17-Oct-17 08:17:24

Friends of mine found a different lender, who use a different surveyor. The valuation did come in higher.

How does it look compared to other houses? Do you think the valuation is right?

TuftedLadyGrotto Tue 17-Oct-17 08:18:14

Previous valuation, not previous jousting!

JustWhat Tue 17-Oct-17 08:22:33

To be honest i’m starting to think it’s not far off...a similar house, renovated to the same standard on the same road but with 5 (smaller) bedrooms (one an attic conversion), bigger kitchen etc went for £182k last year. This one has no attic but a cellar conversion with 2 rooms, shower room and WC. Other one had one room and a WC in the cellar.

JustWhat Tue 17-Oct-17 08:23:19

And this one has only 2 bedrooms upstairs

whiskyowl Tue 17-Oct-17 08:38:22

Speak to the agent, see if they are in a position to renegotiate. It may all still be fine, you never know!

AnnieAnoniMouse Tue 17-Oct-17 08:41:46

Did you post this previously?

If not, another poster started an almost identical thread. It might be worth a read if you can find it.

First you have to decide what it's worth to you. If it's a long term home & you love it, paying more than market value doesn't matter that much. Then you can try other lenders as valuation vary enormously.

However, if it's a stop-gap house or you don't really love it, then offer the valuation price & lets the chips fall.

SantasLittleMonkeyButler Tue 17-Oct-17 08:43:30

Hang on, a 5 bed with a bigger kitchen went for £182k last year & you want to pay £200k for a 2 bed?

Have I read that wrong?

soupforbrains Tue 17-Oct-17 08:59:14

No Santas I think you've misread. The other house has 5 bedrooms (one of which is an attic conversion), the house they're looking at has 4 (bigger) bedrooms, 2 upstairs, and 2 in a cellar conversion which has the 2 bedrooms and a bathroom in it.

so it's 5 small Vs 4 big bedrooms. but it sounds like the 4 bed has an extra bathroom in comparison to the 5-bed possibly?

DameDiazepamTheDramaQueen Tue 17-Oct-17 09:03:52

He won't be able to sell to anyone over what the valuation says
He will if he waits for a cash buyer or someone who can make up the shortfall.

Talk to the agent,keeping everything crossed for you🤞

JaneEyre70 Tue 17-Oct-17 09:18:51

I'd offer to renegotiate the price, and if the vendor won't budge, then walk away. No house is worth paying £30k over value for, and the vendor is a bit stupid if they think that someone will do so.

Ellie56 Tue 17-Oct-17 09:22:28

So a similar house with more space on the same road went for £18k less than the price you've offered for this one OP? Sounds like the lender's surveyor's valuation is pretty close to the mark. I wouldn't pay £200k OP.

Maybe try a couple of other lenders and see what their valuations are? And as others have said, talk to the estate agent.

KarateKitten Tue 17-Oct-17 09:27:27

We had a weird situation. Very helpful mortgage broker who was friendly with the admin people at the mortgage provider. The valuation for our new house came in and MB sent it straight over. It was 20k more than we'd paid. But the doc said 'draft' on it and a few days later a final version arrived with the valuation at exactly the amount we were paying. I think the bank knew the house was worth more than we were paying but didn't want it on the record as it would impact L2V.

Valuation is a bit arbitrary. But that doesn't help yousad Talk to the vendors.

janinlondon Tue 17-Oct-17 09:29:15

I have experience from the other side of this as a seller. We accepted an offer on our flat, but the buyer's valuer came from somewhere out of area had no idea what a flat in our area was worth. The buyer tried to renogotiate the price with us. We put the flat back on the market same day and had three offers - we asked the agent to black ball anyone using the same mortgage lender as the first offer. Flat sold for £40k over what we had asked (and £60k more than what the first offer tried to negotiate down to). Some lenders use valuers who are out of touch with local trends. You are at a disadvantage if yours is one of these.

Cinnamal Tue 17-Oct-17 09:35:17

This happened to me. The vendors ended up taking the house off the market. I Bought a different house for the same amount but with a different mortgage provider!

justtryingtogeton Tue 17-Oct-17 09:37:58

The agent need to provide comparables to show the house is worth £200k. These can then be used to challenge the valuation.

Having been a broker for over 15yrs, I’ve only ever won 2/3 of these situations.

Worse case scenario, if your heart is set on it, is to switch lender who use a different surveying company. Most mortgage companies will give away a free basic valuation. So may not cost you much to switch.

Surveyors are a law unto themselves, and in a slowing market, overly cautious.

Good luck!

QuiteLikely5 Tue 17-Oct-17 09:40:21

Talk to the agent.

Find outs who's idea the valuation was?

Initially the agents value it or discuss with the vendor what they'd like to market it at.

Agents can be sneaky and agree with owners valuations so that they get the business

PrimalLass Tue 17-Oct-17 13:05:03

Some lenders use valuers who are out of touch with local trends.

Agreed. Our house was valued for remortgage purposes and it was about 20% out on what we know we'd sell for.

Ellie56 Tue 17-Oct-17 17:35:51

So what are you goin to do OP?

Ellie56 Tue 17-Oct-17 17:36:08


NorthernLurker Tue 17-Oct-17 17:37:54

If two of the bedrooms are in the cellar I'm inclined to think the valuation is right. I'd walk away op.

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