Does negotiating a house price lower its value

[Jk8]

Just that basically... if a house is 'worth' £250k but your the only buyer approved by a bank & your offering £200k does the house have £50k in equity or has it lowered itself value wise to £200k

Valuers look at local averages for similar houses as well as the condition of the house itself. A separate valuation in say 5 years won't be reduced because you got it for less. People sell houses under value for all kinds of reasons.

A house is worth what someone is prepared to pay for it and what the vendor is prepared to sell for.

That's what I was under the impression of but also curious if its possible to have equity by virtue of underpaying (getting it for a great price / borrowing against the difference in what wad paid vs the value sort of thing) 🤔 I feel like I've heard both over the years

Value and price are not the same thing.

No - equity only exists as a theory until it's realised through selling. You may think you have £50k equity in your house, but if in the end someone only pays £30k over your mortgage amount then the equity is £30k. Or, if you wanted to borrow against that equity, the amount is decided by the person valuing it on behalf of the lender - but that's still not a concrete number.

The price you actually paid is what will end up on Zoopla.

It's only worth more if you can actually sell it for more. Back to @Chewbecca 's point.

Equity is the difference between the value and the amount of loan you have outstanding.

Obviously ‘value’ is a tricky one which only gets really flushed out when a property is sold.

I don’t have a mortgage any more. Say my house is worth £400k, I have £400k of equity. But if I couldn’t sell for £400, I might only have £380k, or maybe £420k. It’s just a theoretical number / guess until / unless we sell.

A house doesn't have a 'value'. It is 'worth' what somebody will pay for it on the day that it is bought/sold.

If the previous sellers couldn’t sell it at £250k and could only sell it to you at £200k as the only offer, I’d guess the value is likely to be closer to £200k. What the bank may value it at is a different story, but I would imagine it would never really be more than you bought it for.