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Valuation has come back 15k under asking price.

(64 Posts)
BakerBear Mon 23-Oct-17 21:36:02

We have found a great house and offered the asking price.

A valuation has been done and has come up at 15k under the asking price.

We know a previous person had gone in to buy the house and had a valuation and survey done but decided to buy somewhere else. The estate agent assured me that the house was not under valued but the previous people had just decided to buy somewhere else.

We could get a second opinion or up our deposit by 15k or pull out.

Mortgage advisor has said the estate agents need to get 3 comparisions within a 2 mile radius of very similar properties that have sold for the asking price to prove the house is worth what they are asking.

We are wondering if the same thing happened with the first buyer.

We maybe prepared to put 15k extra in but we dont want to be ripped off if its not worth the extra.

What would you do?

Polomintini Mon 23-Oct-17 21:41:09

I’d go back to the vendor, explain the situation and offer to split the difference. So - ask for a reduction of £7.5k. Be prepared to walk away

Potentialpoochowner Mon 23-Oct-17 21:45:18

I'd say to the seller's estate agents that the house is not worth what they're asking and to knock £15k off. If they come back with a cat's bum face say that one bbuyervhas already pulled out and other buyers will discover the same as you have.

Bostonbullsmumma Mon 23-Oct-17 21:45:26

We had this- the house we were selling was valued at £10k under the asking price. We accepted £10k less. The buyers didn't have the £10k to add to the deposit. Even though we had loads of interest in the house, we thought it would just happen again. The house we were buying valued £2k under- the seller wouldn't accept the reduction in price! We put the £2k down as the deposit. But £2k in the grand scheme wasn't much!
If you were to sell in the future would you make the £15k back I guess Is the question?
Our estate agent never mentioned 3 valuations to us nor did our mortgage advisor. Would these then be sent to the mortgage company to reconsider? As I guess the seller can ask for whatever he wants!
All the best with the move!

twinone Mon 23-Oct-17 21:49:07

If It's valued at 15k under for you, it'll probably happen for other prospective buyers.
I would (and did) go back and offer the valuation price. Our vendor grudgingly agreed but hated us for it. I don't care, we weren't going to pay a penny over It's worth.

BakerBear Mon 23-Oct-17 21:49:49

Yes the comparisons will be sent to the lender so we can appeal the decision (takes afew weeks).

Im not sure whether we will get the value back (we are first time buyers)

Its all very stressful

Crabbo Mon 23-Oct-17 21:50:08

If the house has been valued at 15k lower twice (which it most likely has as why would the previous buyers just decide to buy somewhere else when they’ve already paid for survey etc) then it’s overpriced. Have you looked to see what similar properties have sold for? Personally I’d say to the seller that you’re not willing to pay over the value of the house and leave it to them to drop the price... but obviously you run the risk of them saying no so it depends how much you want it and if you’re willing to pay over the odds!

BakerBear Mon 23-Oct-17 21:51:00

The estate agents (i know they lie) told me that you are paying for someones opinion and you can have two valuations done on the same day by two different people and they both say different things

Tugtupite Mon 23-Oct-17 21:51:26

What % of total price is £15k?

BakerBear Mon 23-Oct-17 21:52:40

Its very hard to compare it to other properties as it has more land than other houses on the same street.

The bought it for 341k 5 years ago but have since bought the land.

The asking price is 390k and the valuation has come up as 375k

Potentialpoochowner Mon 23-Oct-17 22:00:13

So it's one back as worth 3,8% less than it's asking price? Don't Houses routinely go for at least 10 per cent less thxb their asking price? Tge house I just bought had an asking price if £370k. Then it reduced to £350 after no serious offers. I offered £345 then settled at £340 after home buyers valuation. I'd be wary of paying over the odds in this climate unless you're rolling in it.

Potentialpoochowner Mon 23-Oct-17 22:01:14

God, sorry for all the typo fuck ups

BakerBear Mon 23-Oct-17 22:08:48

This couple have had offers under the asking price before and have refused them.

Potentialpoochowner Mon 23-Oct-17 22:13:30

Then it comes down to a matter of how much they want to sell vs how much you want to buy.

BakerBear Mon 23-Oct-17 22:15:52

We really dont know what to do.

Would you like a link to it?

dangermouseisace Mon 23-Oct-17 22:17:56

We had similar when selling our house. The mortgage company would only loan according to their valuation. We reasoned that if we turned down our buyers new offer (the valuation) exactly the same thing could happen with the next buyer. It's up to you, but the seller of the house you want is going to be faced with that situation. Personally I think they'd be daft to turn down the lower offer, especially with Brexit uncertainty.

BakerBear Mon 23-Oct-17 22:18:08

www.rightmove.co.uk/house-prices/detailMatching.html?prop=45759315&sale=28804632&country=england

MaderiaCycle Mon 23-Oct-17 22:18:10

Yes please. Links are good.

Bostonbullsmumma Mon 23-Oct-17 22:19:46

Yes please

imaddictedtomn Mon 23-Oct-17 22:22:49

I find this very bizarre.

I thought the value of a property (or anything!) is what someone is willing to pay for it.

You’re willing to pay the asking price so presumably you thought that’s how much it was worth.

So why is the surveyor saying it isn’t worth it?

BakerBear Mon 23-Oct-17 22:25:00

I dont know why the surveyor is saying it isnt worth it but the mortgage lender wont lend us what we orginally thought as they will only lend what the valuation has come up as

dangermouseisace Mon 23-Oct-17 22:26:54

It's not bizarre. It's estate agents being greedy (comission).

Valuation looks at prices in the area etc and takes account of what they see as defects/things that detract from the price.

So an estate agent valuation is based on making maximum commission, the mortgage company on sensible lending.

dangermouseisace Mon 23-Oct-17 22:27:22

prices in the area being SOLD prices, not selling prices.

Potentialpoochowner Mon 23-Oct-17 22:29:32

What kind of valuation did you have done on it - basic, homebuyers, or the other (top notch) one?

BakerBear Mon 23-Oct-17 22:31:05

Basic one

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