Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Flip

1 2

Original poster

House valuation

49 replies

QuidditchSwitch · 06/04/2022 11:49

This is a post for traffic really. Well also a bit aibu.

We're selling a property. It was valued by an agent and we soon accepted an offer a couple of k below asking.

The buyer requires a 60% mortgage and the mortgage company instructed a valuation.

That valuation came back as 12.5% below the agreed price, which means the buyer can't afford to make up the shortfall with more funds. I suggested asking for an 80% mortgage, which given 80% of the new valuation would mean that the existing deposit would cover it.

I was told by the agent that they couldn't do this but haven't been told why.

So, the buyer wants to do a second valuation. They've approached me and are asking me to pay £750 to pay for this.

Aibu that this sounds a bit dodgy?

My concerns are

I've never been asked to pay for a bank valuation for a property that fell through.

£750 seems like a lot of money for a valuation anyway, particularly as it's a sub 250k property.

If they request a new valuation, surely the valuers could well just send the same valuer around resulting in the same position we are in now, but £750 down.

I mentioned these to the estate agent who said, yes but we don't know if they will send the same valuer or not, the buyer is willing to take a chance to try again.

I mentioned that I thought £750 was a lot anyway and they said that this includes the broker fee. Huh?

Should I just say no?

OP posts:

Original poster

QuidditchSwitch · 06/04/2022 14:06

@SpiderinaWingMirror

Just remarket it. If they genuinely have 40% equity there's lots they can do. They are choosing not to.

That's interesting. What do you think they can do?

OP posts:

anniegun · 06/04/2022 14:09

I suspect they are going to let it out. Hence the mortgage provider want a higher LTV.

Original poster

QuidditchSwitch · 06/04/2022 14:12

@anniegun

I suspect they are going to let it out. Hence the mortgage provider want a higher LTV.

Oh that's interesting!

OP posts:

Heracles1000 · 06/04/2022 14:19

Yes a property is worth what someone wants to pay for it. In a situation where someone has a mortgage, the bank is the one who is paying for it!

FTEngineerM · 06/04/2022 14:21

If they have applied for 60% ltv product then they either have 40% (or 100k going by a 250k example) cash or tied up in their house as equity. You haven’t mentioned their need to sell their house so assuming it’s cash.

They can get a higher ltv product if the valuation has brought down the valuation by 12.5% providing its affordable for them on a monthly basis, but as a pp said it maybe a buy to let thing where they require lower ltvs that residential.

Viviennemary · 06/04/2022 14:29

Absolutely not. The valuation fee is for the buyer to pay not you. Shame they can't afford the house but that isn't your problem.

TinySaltLick · 06/04/2022 14:42

If you are keen to move and avoid going back on the market, the absolute most I would offer is for them to pay for the valuation, then offer to discount the property by 750 (or half of this?) assuming they get the completion and not before

But I would start with a no - they need to sort out their own finances

If the property is genuinely worth less and this is a very strong offer, finding a way to get the sale done may be in your interests

Original poster

QuidditchSwitch · 06/04/2022 14:45

Regarding brokers, L&C are free and as far as I know cover the entire market

OP posts:

bellabasset · 06/04/2022 14:54

I would say no and meanwhile I'd be looking at getting another estate agent with a view to putting it on the market again.

Octomore · 06/04/2022 14:57

It's a seller's market right now - good quality, attractively priced homes are flying off the shelves in the areas I'm looking at. You don't need to jump through hoops for this buyer - either they sort the finance out themselves, or you'll find another buyer. Don't pay to sort out something that is ultimately their problem.

Octomore · 06/04/2022 14:58

Tbh - the fact that they are struggling to raise the capital would make them an unattractive buyer.

I've been gazundered at the last minute before, by a buyer who had offered what they couldn't actually afford. It was so last minute that we had little choice but to accept the reduced amount, but now I wouldn't touch a struggling buyer with a bargepole.

ThinWomansBrain · 06/04/2022 14:59

get the house back on the market.

if you'd been trying to sell for ages and getting the same response, maybe time for a rethink - but not the first offer.
Do your own research on zoopla etc for similar recent sale prices in the same area if you think the estate agent's valuation is a bit high.

Strawberryshortcake28 · 06/04/2022 15:28

No chance he should pay for it bank valuation is always gna be lower than market price as it's based on structure alone

Electriq · 06/04/2022 15:51

I'd put it back on the market.

ComeSailAway · 06/04/2022 15:57

Perhaps the estate agent's valuation was unrealistic. I had a survey done by an RICS surveyor once and it was well below the EA's valuation. This (the surveyor's valuation) was considered to be more accurate. I had to pay a few hundred quid to have it done though.

noscoobydoodle · 06/04/2022 16:08

We had this recently. Our options were to contest valuation (we did it was rejected), try applying with another lender (buyers couldn't as they had niche lender), tell them to jog on and remarket (we considered this) or split the difference (we did this in the end). I'm not sure another valuation will matter if their lender has down valued? I wouldnt offer to pay at all as it isn't your problem.

pastaislife · 06/04/2022 16:10

Tell them to at least try another lender/mortgage company first?! or have they already done that? We had a lower valuation with one lender (as the buyers) so just tried another one who were fine.

LGY1 · 06/04/2022 16:12

A second vote for buy to let landlords. A BTL mortgage usually requires a minimum of 25% deposit.
That’s why they can’t go to 80%

NobblyBob · 06/04/2022 16:36

I'd refuse to pay their val fees, that's absolutely not on you to cover, with a view to remarket if you are in a position to. They aren't attractive buyers and if they're quibbling over £750, I'd worry what other fuckery they'd get up to further into the process.

Octomore · 06/04/2022 16:40

@Strawberryshortcake28

No chance he should pay for it bank valuation is always gna be lower than market price as it's based on structure alone

This is bollocks. The bank's valuation is based on market value - it's just that they may have a different view of the market to the estate agent.

Octomore · 06/04/2022 16:42

The buyers have absolutely no business trying to get you to pay a portion of their purchase costs. If they can't afford this house, that's tough, they need to find one that they can afford.

Their difficulties raising the capital are not yours to solve, and quibbling over £750 at this stage is such a major red flag.

Saz12 · 06/04/2022 16:49

From their perspective, they’ve just discovered that they potentially offered way over the value: maybe they think EA has overvalued to secure you as their client, maybe they think you’re unrealistic, whatever. They’d need to be very keen to just accept the valuation difference and cover it from savings.

So are they thinking that if you see some sort of impartial evidence of valuation it’ll be easier to make a deal?

There’s no way I’d pay for their mortgage valuation! You could get your own RICS valuation survey done yourself for less than £750.

whynotwhy · 06/04/2022 18:58

I can understand valuers being cautious mortgage companies being twitchy. A property crash is a realistic possibility, but unlikely that houses will lose 40% of their value.
Put the house back on the market. If it is going to be a rental there are quite a few cash buyers out there.

girlmom21 · 06/04/2022 19:03

@Strawberryshortcake28

No chance he should pay for it bank valuation is always gna be lower than market price as it's based on structure alone

Why are you talking nonsense?

Flip

1 2