bank valuation on the new home is 30k lower(11 Posts)
We found a house which we like and could afford in order to the seller not put the house on the open market we offer the estate agent valuation of 595 today got the mortgage survey through and they valued at 565..... What would you do? There are not many houses close to school that we can afford which are bigger then ours and the ones we found our offers did not get accepted cause we r selling 2 properties.... Is it a mistake going ahead?
This happened to us last year, house was valued at £450k but mortgage company valued it at £390k. Estate agents were absolute arseholes about it, acted as though we were wasting everyone's time and refused to sell it to us as they had a back up buyer. We pleaded with them to co-operate with the mortgage company, as they were asking for evidence of how the EA had reached their valuation, but the EA point blank refused and consequently we lost the house. We were gutted as it was the perfect house and perfect to run our business from home.
Sorry, no practical advice to give as we never managed to solve the problem
It happened to us further up the chain when we bought last year. Our seller had to apply for a larger mortgage. They could afford it and there was no way the valuer was right. I live locally and I know they didn't pay too much for the house. The seller was going to put it back to the market unless our seller paid the original agreed price.
Only you would know if it's the right price. If it is, and if you can afford it, would you pay the full or close to the full agreed price?
We are in the kind of area you talked about btw. Not many houses on the market. Great school catchment. And all the houses sell near or at asking price.
Sorry to hear that mayoketchupchocolate
First of all, when you say 'estate agent valuation', this doesn't mean very much because the agent could have told the seller a high figure to get the business. Are there other houses nearby that are similar that have sold for the same sort of price? Think of the estate agents as sales people - they do not necessarily do valuations, what they do is give a prospective seller a price which they MAY be able to get on the open market. Or they may not get it and then advise reducing the price. The bank, however, will get a qualified valuer to establish what a reasonable price is that could be achieved if the bank had to sell the property in the current market.
Also, if you have two houses to sell, that is twice the potential problems that could arise during the sale process. Would it be feasible to move into one house whlle you sell the other? Or sell both and move into rented? The advantage of this is that you are then a buyer with no chain which puts you in a good position for the next house.
Have you told the vendors what the bank valued it at? Perhaps they will accept a lower offer since they will have no agents' sale fees. It's worth discussing it further with the vendors anyway.
Could you afford to take on the additional deposit?
If yes then tbh consider still going for it, £30k isn't that great a figure for a house of that size to appreciate.
Otherwise, do some research, look up on zoopla and see what other houses in that street have sold for.
If this is a case of a greedy ea or vendor, it may be at you could find some middle ground
Our current house was valued at 20k less than our offer, vendors would have put it back on the market (they had other offers higher than the valuation so they could have just gone to one of them). We argued with the surveyor and in the end he upped the valuation by 10k, vendors accepted.
Yes we still can go for it we are waiting for a second survey which will give us a second valuation and a more detailed report. The house next door sold for 426k but that was 2 years ago and house prices really gone up in south east london.
Newmumwitgquestions does that mean the vendor accepted 10k less? The survey was done by the bank, but they still give us the same mortgage loan as we have a good LTV.
Ultimately, is the house worth to you what you're paying for it?
In SE London it's unlikely that the market will slow any time soon. And if it's a house you plan on living in for 5 years or more, that kind of money isn't something you need to worry about as it'll all catch up in the end.
It is worth seeing what the second survey is and whether you aproach the vendors to come closer to the value?
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