Undervalued property(15 Posts)
This is a vent more than anything. After one vendor asking for more money 2 weeks after accepting offer, then next vendor deciding they didn't want to move after all 6 weeks into the process we thought we had found a house we loved at a great price.
Now Santander's surveyor has undervalued by almost 50k. A 495k agreed price now valued at 450.
Don't know what to do. Pretty sure vendor won't move much. We could make up shortfall but it would impact on what we could do extension wise. I don't think it's a bad price and is lower than what things seem to be going for on right move....yet looking at sold prices it's not so inaccurate.
Reluctant to change lender on the basis of them using a different surveyor due to more credit checks messing up my record. Currently excellent and so is DP s.
How is everyone else getting their mortgages if properties are valued much lower than agreed sale prices...we have been outbid on a few so we are aware of offers accepted on similar properties.
Help...any advice welcomed in response to this incoherent mind dump !
In case it helps property is in e17.
Well as you're no doubt painfully aware the prices in E17 are just getting ever-more ridiculous... If you're sure it's a fair price why not ask Santander to review their valuation? Send them evidence of recent sold prices (not asking prices)?
When we bought our house it was undervalued, (about £20,000) if I remember, we decided to go ahead, and after 5 years it has increased over and above that. We knew we were buying a home for at least a decade, knew valuations were given more cautiously after previous mortgage blunders, decided in relation to other properties we had seem that it was the "going price". So glad we did now!
It seems to be cheap for asking price yet more than comparable sold prices. So I'm in the middle of thinking it is fair and unreasonable at the same time. It's thrown me.
We sold a 2 bed tiny house with teeny garden for 430 in December and this is so much bigger in every respect and one of the cheapest 3beds in the postcode..... But looking at sold prices 450 isn't too crazy - maybe a bit low but not horrendous. I guess what we are seeing bidding wise isn't translating to sold prices at all.
We do want to stay for ages but also worried that anything can happen in life and don't want this lose out by paying over the odds.
It is a silly postcode. But I love it and love ds school and really want to stay.
I could move on. But what if this happens with the next one as well.
Sorry i sound so depressed it's just frustrating and stressful. We have mortgage amount of 411 approved on affordability point of view and 200k leftover for deposit and works so it's manageable and I know I should just chin up and deal with it. It's just been a hard year and this is getting to me.
With prices that are lurching up and estate agents that are pushing their luck it can be really hard to judge what is an unreasonably high price and what is just about acceptable. Was there much competition for this one - that might be an indication of whether your offer is too high.
I really feel for you- that is very stressful.
Do you know what the chain is like? If it's complete, the vendor may move a bit?
And your survey might also help with negotiation, or your decision, depending on what it says. I totally get that you don't want to pay out for that though, and then he house. It just feels like money is being burnt.
We're just trying to buy somewhere, after our first vendor pulled out after five months(!), and our buyer then asked for money off due to new stamp duty.
So, we are both allowed to feel stressed and miserable about it, I reckon.
I hope it works out for you, maybe the vendor would split the difference?
You can't actually tell what things are going for on Rightmove in real time. Just because something is advertised at say £450k and it says sold doesn't mean it went for £450k - it could be a lot less. The actual sold prices can take months to appear on Rightmove by which time values can have moved up or down anyway.
Go back and negotiate. Show them the offer, show them the sold prices.
If it has been undervalued by one, it will be undervalued by the next - maybe not quite as low but certainly not as high as your accepted offer.
The estate agent should be able to provide you with more up to date sold prices for comparison
Thanks all. Good advice and kind words equally appreciated.
We were first bidders but everything else was going within a week so we felt lucky to grab it but maybe we jumped the gun and got carried away.
I thought I had a decent handle on prices but agree that I don't anymore and definitely agree that what is showing on rightmove isn't translating to real time prices.
There is no chain. Which felt like a positive thing. We aren't selling...we are retaining and renting out. The property is vacant and has been let for many years. So whilst it seems like a simple transaction I'm not sure how motivated the vendor is to take the readjustment in price.
Spoke to two friends who recently bought and sold in the postcode and one said their buyer paid over the valuation by 15k and the other bought I'm similar circumstances.
Feel like I'm going crazy! to everyone else subjected to the stresses of moving!
Spoke to a local firm of agents and they are giving it the talk but not sure if I trust them. The vendor is using an online agent who already seemed useless and in this respect won't have much to add I suspect.
Also my survey was done 10 days ago...called today to chase the written report and waiting for them to call me back. Im very intrigued what it says.
Well turns out my surveyor also undervalued by a similar amount so I'm convinced that it is overpriced and trying to negotiate them down. Don't think they'll budge so the process begins again! Thanks everyone for your advice and thoughts yesterday.
We've just sold a property the survey value was £35 k less than agreed price we split the hit with the buyers mortgage surveyors are definitely cracking down.
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