This is a Premium feature
To use this feature subscribe to Mumsnet Premium - get first access to new features see fewer ads, and support Mumsnet.Start using Mumsnet Premium
Shared ownership selling advice(8 Posts)
We live in an end of terrace 3 bed shared ownership with a good size garden. After a long process we are nearing towards exchange and completion. Our valuation ran out so we had to get it revalued (its original value was November 2019) our surveyor knew we were nearing completion and valued our property the same price as he did back in November 2019, because we already had a buying sold at that price.
We felt back in November he undervalued because a property similar to ours sold for the same price on a smaller plot but we just went ahead.
However our neighbour that is also shared ownership, two doors down has put their property on the market today. It's a mid terrace with the same specification but smaller garden and smaller plot.
They have had a valuation for the exact same price as ours, and have placed it on the market for that price.
We are selling it through the same housing association and can not change the price it has been valued.
We both bought out properties as new builds and I paid premium for mine because its an end of terrace on a larger plot.
I have booked in with our neighbours surveyor to have our property valued, however the housing association are saying we should go with our original valuation as that's the price our buyer agreed and has a mortgage in place for, which would mean we would be selling at a loss.
What would you do? Advice please?
Sorry I didnt understand the timelines - you started the sale in Nov 2019 at an agreed price? But are only completing now?
When you agreed the price, were you selling at a loss. But if you are nearing completion can you change the asking price? I agree the whole thing sounds very annoying if your neighbours has been valued at more than yours when it seems it's obvious it isn't worth more.
Is this issue all to do with it being shared ownership? Are valuations different in this scenario?
Usually in non SO, a seller accepts an offer from a buyer. This happens before a survey/valuation is done. Often the valuation is purely for the mortgage lender to confirm the property has enough value in it, so if they have to re-possess and sell if default happens, there will be enough value in it. It is common for the valuation and the offer accepted by the buyer to differ.
You accepted an offer 10 months ago. It is not surprising if 10 months later a slightly smaller property is worth more than yours was valued at. If you'd completed 4 or 5 months ago, you wouldn't even be thinking about this.
Unless you are selling to the SO company and not an actual buyer, I'd just want to complete really. If you are selling to the SO company, again, a valuation done months ago is likely to differ to one done today. It doesn't mean they cheated you then....the market has just moved on since then. What do they say about starting the process again and re-valuing? I'd imagine that you need to take the value they offered and you accepted....otherwise, people could keep asking for new valuations all the time.
The alternative might be to say you're no longer moving and to look into it all again in a while. But bear in mind house prices are likely to drop once the stamp duty holiday is over, plus I suspect you're benefitting from that as it haven't completed yet. Don't let a few quid bother you. Sometimes one place might have a bigger plot or have cost more to start with, but is now worth less than a smaller property...it could be all kinds of things that make that happen that you do t know about. So focus on your own move.
You have agreed to sell for a particular price. If you get it revalued for a higher amount your buyer needs to agree, they’ll need a revised mortgage offer. Assuming they can afford the extra.
If you want to sell get on with it. If you don’t, by all means start the process again.
It's been a terrible long process with shared ownership. Our original buyer fell through due to lack of finances, then luckily we found a buyer in March first day of putting it back on the market and just before lock down.
We had it revalued through desktop in June for the same value and then again recently. Our shared ownership rule is that the property needs to be revalued every 3 months.
When we recieved our updated revalution the same day our neighbours property went on the market for the same price, valued by a different surveyor.
Our purchase sell fell through back in July and we have finally just had an offer accepted on a house. The shared ownership houses are extremely popular in our area and I know we won't have any trouble selling it, I'm sure the buyer will agree the new updated price.
I would just feel gutted selling it at a clear loss.
It’s not a loss is it?
The house is willing what someone is willing to pay. Remarket it if that’s what you want?
They valued it the same the second time round because that was what was needed - it was to help you. Can you not see that?
When you say 'a loss' do you mean you are selling it for less than you bought it? That is what a loss is. Of course, this does happen and is just part of the housing market.
Because another seeming identical house is valued differently doesn't mean yours is selling at a loss. Theirs might have internal features you know nothing about or be in superior condition that you know nothing about. If yours is revalued in another 3 months time it might be worth more or less than now - that's just the housing market for you.
Remember the economy is going into recession and the stamp duty holiday won't last beyond March...after that prices are likely to drop. So you might wish to offload this now and take advantage of the stamp duty Hol yourself, although assuming you're buying more expensive elsewhere, that orice is likely to drop too...but whether that is more than the stamp duty saving you'll make now depends on the value of the house and local market. These are more relevant things to consider really when deciding if you want to sell now.