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Original poster

OH F88K - housebuying advice please

93 replies

Beccarollover · 17/07/2004 17:07

Hi

We were ready to exchange this week on our new house BUT went to solicitors today to sign where she informed us that our has been devalued by the buyers surveyor to the tune of 12k!!! This is totally crazy - its a 5 year old house up for 117k (we accepted the offer of 115k) and in the last few months about 3 or 4 have sold with the same agent as ours for at least 115k with no problems.

I spoke to the agent and she is as bemused as me she said the surveyor didnt ring for comparables which they do normally so seems to basing this valuation purely on his own perspective - she is ringing him with comparables to try and talk him round - Im not at all hopeful about this!

Our buyers have offered to meet us half way which would be 110k but I cant accept this valuation - in this area you just cant buy anything for 105k and our street is one of the two nicest in the area....

Our sellers are going to lose their house if we dont complete by next friday.

I DONT KNOW WHAT TO DO - please, please, please does anyone have advice?

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ks · 17/07/2004 17:24

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littlemissbossy · 17/07/2004 17:27

Hi Becca, sympathy from me too. IME this is a tactic often used by buyers to renegotiate on the price at the last minute ... I mean why leave it until today to inform you of this?? What has your solicitor said?

SoupDragon · 17/07/2004 17:27

Can you find out why he's valued it low?

noddy5 · 17/07/2004 17:27

Something similar happened to us and the surveyor who undervalued didn't come from the area and knew nothing about value here.Can you get your solicitor to suggest the buyers look at local estate agents and see for themselves?It is a bit late in the day to say this at exchange!Could you afford to get an independent valuation done?What does your estate agent say?

Original poster
Beccarollover · 17/07/2004 17:28

DP is being useless just sitting ranting about getting hold of the surveyor and breaking his jaw.

I really dont know what to do - initially I was adamant no negotiation would be done but taking

Will I pay solicitors fees for work so far?

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noddy5 · 17/07/2004 17:29

You will have to pay the solicitor regardless for the work so far.IMO they are trying it on why didn't they raise this sooner?

soapbox · 17/07/2004 17:31

When this happened to me - I got the estage agents to send all of the comparable house sale information to my sols and asked him to forward it onto the other side. I refused to lower the price agreed and surprise surprse they eventually decided to progress at the original agreed price. If they want to forward the stuff onto their valuer or biulding society they should be able to negotiate the mortgage on the same basis.

Good luck - keep your nerve!

Original poster
Beccarollover · 17/07/2004 17:31

I think thats whats happened here - he is only going on his own perception but doesnt know anything about the area (for eg its very near the main very popular area in newcastle, my house backs on to well known lovely nature reserve, the street is locally very popular etc etc)

Do you think it would ever happen that a horrible, nasty, miserable surveyor would ever go back on their word (I could tell he was a total tw*t when he was here My estate agent is going to try to talk him round but im not at all optimistic

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sponge · 17/07/2004 17:31

You have to be prepared to walk away if necessary.
But remember that you're not the only ones who've invested money in this, so your buyers will also be keen to get it resolved I would think.
The problem will come if they are applying for a high % mortgage as they will need the valuation to be for at least as much as they need to borrow.
Otherwise as long as they aren't borrowing more than 105k they don't need a revaluation, you just need to get them to see that their valuer has done a poor job.
If they're already offering to come up to 110k it looks like they really want the house so I'd hold out for more. It's amazing what the threat of losing the property does for a buyer's resolve!
Good luck.

littlemissbossy · 17/07/2004 17:31

Yes Becca, I agree with Noddy, sounds like they're trying it on!! buggers !!!

Original poster
Beccarollover · 17/07/2004 17:33

The thing is - it was all very close to the bone anyway because their mortgage offer took an age to come in (only came today) survey was only actually done last week for some reason - dont know why it was sat on for best part of 2.5 months.

I dont have much time at all to play with to get this sorted - my seller will lose their house if it goes past this week - my solicitor said for this to all go through monies need to be ordered by friday this week

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Original poster
Beccarollover · 17/07/2004 17:34

Shall I instruct my agent to remarket in case of it falling through to put the wind up them a bit?

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Original poster
Beccarollover · 17/07/2004 17:34

...also (!) - the house we are buying we went 5k over the asking price so I could REALLY do with not even dropping a penny on ours

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elliott · 17/07/2004 17:35

You don't need to accept the new offer from your buyers - it is very late in the day and I too wonder if it is a ploy. have you seen the valuation in writing? Were there any particular factors for the surveyor to devalue it in comparison with other similar properties? If you think you are right (i.e. it is worth what you think it is) then I would start by giving a clear message that you will not go any lower at this late stage - then see how they react to that. But then of course you have to decide your own bottom line - would you rather lose 5K or lose the house move?
What a horrible stressful situation though.

shrub · 17/07/2004 17:36

this happened to us - i think they call it 'gazundering'. our buyer posted the survey through the door with all the faults highlighted and the surveyors valuation/current estimate of works to be completed which was £5000 less than her original offer. i think it is very common - we said we felt the estimated costs were over valued and said we'd meet half way - she said no.we then threatned to put it back on the market but the estate agent convinced us the faults would be highlighted again with the next buyer (damp/chimney flashing!). she also said the person buying her house had suddenly dropped £8000 on her and was 'passing the pain down the chain'.talking to other people it is a common ruse, infact we did the same when we bought our current house. could you do the same to the people you are buying from or explain what has happened and basically say you now only have funds for £12k less? or dig your heels in by calling your buyers bluff and tell them its going back on the market to see if they backpeddle? -would the people your buying your house from be prepared to wait while you sell again? it sounds like they are trying it on -the time frame between valuation/survey and exchange of contracts would have given your buyers ample time to discuss the survey with you before. they are doing this at the last minute so it forces you to make a decision. also is the £12k a 'retention'? that is a retention of funds from the mortgage company that is witheld until necessary work has been done on the house?if so advise your buyers they can negotiate or even appeal if this potentially loses them the house. if it is a recommendation then i would feel the surveyor needs to justify his valuation. if your buyers are cash buyers then they are just trying it on.ask to look at a copy of the survey, at the very least you should be able to negotiate. worst case scenerio is if you really want the house you are buying you could amend the amount you are borrowing (depending on affordability)from your mortgage company. i absolutely know what you are going through. we are never moving again. best of luck xx

Pes · 17/07/2004 17:38

Is it a valuation by a surveyor for the buyers mortgage company? I can't inderstand this because these are usually done well in advance, and you can't arrange a mortgage without one. Simply can't understand why this is coming up at such a late stage.
Are they cash buyers? They can pay whatever they want , whatever the surveyor says.
If survey is not for mortgage company, they are IMO, trying it on.

littlemissbossy · 17/07/2004 17:38

Sorry Becca wish I could be more help ... what did your solicitor advise??

noddy5 · 17/07/2004 17:40

They obviously are trying it on.The 1st couple who looked at our house got a friend who was a surveyor to de value it but we stood our ground and they pulled out we eventually got a better offer so it all worked out.Still we haven't moved though the chain is a nightmare!We too are never moving again.How much could you realistically afford to drop?

beetroot · 17/07/2004 17:43

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Batters · 17/07/2004 17:43

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Original poster
Beccarollover · 17/07/2004 17:44

Thanks for all the great advice - I'll answer some of the questions here to put a clearer picture on

For some reason the buyers mortgage has just been arranged in the last few days.

The survey was a valuation survey from the mortgage company.

The agent said there was no reason for the reduction - there are absolutely no repairs or anything needed on this house - the only thing is its on the flight path - the buyers were made aware of this at the first viewing though and they said it wasnt a problem to them

They paid to have a full housebuyers survey done on this house (this valuation survey was the second one) and the first surveyor was here over 2 hours and came up with nothing wrong at all with the house (except, get this - the smoke alarm needed to be put back, we had taken it down to change battery)

Our sellers cant wait while we find another buyer - they are buying a brand new house and they are already buying time from their builder - next friday being the absolute limit to when the builders will wait for them

Im almost 100 percent sure our sellers wouldnt accept any less - we won the house by going 5k over the asking price as 4 people offered the same as us so it was in high demand.

To add more complications, im very friendly with the seller - our kids are at nursery together so i would feel very awkward with any negotiations.

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ks · 17/07/2004 17:44

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Blackduck · 17/07/2004 17:49

Why a second survey? And what did the first survey value the house at? This all seems a bit odd...
Also, if, as you say, the guy didn't know the area thats probably why he marked it down! The guy who surveyed the house we were selling was the same - he had no idea about prices in the area etc.

Original poster
Beccarollover · 17/07/2004 17:53

I have just rung the estate agent back - she hasnt managed to speak to the surveyor yet.

The first survey done was a housebuyers survey that the buyers undertook themselves before deciding to go ahead I imagine - this came back with nothing and agreed the house was worth what we were selling it for.

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elliott · 17/07/2004 17:55

So the housebuyer's report valued it ok, while the quick and cheap valuation report devalued it? Think you've got very good grounds for holding firm if that is the case. I wouldn't advise trying to pull a fast one on your sellers, paricularly since you may need their goodwill...
I would send a very clear message that as far as you are concerned the price was agreed following a homebuyer's report, you think the second surveyor is wrong and you are not going to drop the price. Do not let the buyers know that you are in a bind with the sellers. Tell them you will start to remarket the house. Then see what happens.