Paying too much?

[missymayhemsmum]

After 8 months and 1 failed sale I found a buyer and then looked around for a house I liked having lost the one I originally wanted. Found one, ticks most of the boxes, (although a tad smaller than ideal maybe). The sellers have done loads of work on it, but because they bought at the wrong time it is now worth less than what they paid plus what they must have spent, iyswim. They refused my first offer, and we settled on slightly under the asking price. It had only been on the market a couple of weeks, and several other houses in the area had been snapped up in the time mine was on the market.

The local surveyor came back saying it was only worth my original offer (8k difference). I'm now waiting for the building society valuation.
If the building society valuer agrees should I reduce my offer, or go ahead knowing I am paying over the odds? I really need to move asap.
WWYD?

[icklekid]

It depends if you can get mortgage for amount above valuation but also how long you are planning on staying? If value is likely to increase because you will be there long term it matters less. You could try and compromise as they will find the same problem with other buyers...

[Globetrotter100]

What % of the offer price is 8K?

[RaeSkywalker]

What ickle said- can you get a mortgage for an 'over the odds' amount?

[missymayhemsmum]

It's about 5% of the price, and the mortgage isn't a problem. I'm not sure how long we'll be there, to be honest, maybe 10 years, and I suspect that even if I do work to it to make it suit us, that won't necessarily increase the value, either.

[Globetrotter100]

I'd present the vendor with the facts and ask if they can reduce the price by passing th reduction up their side of the chain.

If they can't do that, consider splitting it 50/50 if you love it, but be careful about paying over the value, especially now.

Best of luck!

[Ilikedogs]

You might as well ask and see what they say.

However if you are staying around 10 years and have a healthy deposit which should 'protect' from going into negative equity, i would consider it at the original price depending on the state of your local market.

[user1467297746]

sorry to jump on your thread - but is a valuation the same as a reinstatement value?

I had a reinstatement value of 160 K but the asking price was 180 - and we negotiated 173.

[missymayhemsmum]

No, the valuation is what the surveyor/ valuer thinks it is worth bearing in mind other properties in the area and the market. The reinstatement cost is what it would cost to rebuild if it was razed to the ground, so the minimum amount you should insure it for.