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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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wobblyknicks · 17/07/2004 17:57

Two other things you should look into;

  1. A bridging loan - sometimes mortgage companies will give you (or maybe your sellers) one to cover a gap between you buying a house and your house selling, so you could still buy the house you're after before you've actually sold yours.

  2. Some mortgage companies, estate agents and home-building companies buy a house in a chain in your sort of situation to ensure that the chain doesn't fall apart. They usually do it when it looks like the house would sell again fairly quickly and where there's a big chain, so if it fell apart it would affect a lot of people. Maybe your sellers builders could do this, or you could find another company who did this scheme.

elliott · 17/07/2004 18:00

personally I think chasing the second surveyor may be a waste of time and isn't really relevant (unless it really affects what your buyers can borrow - and in that case they could use the evidence from the first survey to give to their mortgage providers - but that's their problem really not yours).
The important thing is whether the buyers will stick with their original offer (which lets face it they must have thought was reasonable originally and have been fully geared up psycologically to pay, so my guess is they WILL pay it if you make them believe they will otherwise lose the house). Don't panic - you're being perfectly reasonable to insist on the agreed price.

Original poster
Beccarollover · 17/07/2004 18:00

I think my buyers are going to expect some sort of negotiation from my side unless the valuation is rectified

I keep feeling really angry towards them but I suppose its not their fault although i would love to know why it took this long to finalise the mortgage

They now have the mortgage offer apparently so at least if this can be resolved we will be ready to exchange straight away.

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noddy5 · 17/07/2004 18:00

We had to still pay our solicitor for 1 aborted sale and purchase so I think different solicitors different rules.Check the agreement this is so stressful I really sympathise.Can your solicitor fax a copy of the homebuyers report to their mortgage co.?

Original poster
Beccarollover · 17/07/2004 18:02

Apparently they tried to get the mortgage company (scottish widows) to take into account the homebuyers survey as my buyers thought this was acceptable proof of the value of the house but they insisted in getting their own valuation survey done and didnt want to know about the first survey.

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LIZS · 17/07/2004 18:02

I think it is a bit odd that the valuation survey was only done last week - could they be having trouble coming up with a mortgage company prepared to lend to them, I wonder. Did their full survey value it appropriately - if so I think it is up to them to present this to the mortgage company, with your estate agents view, and argue it out, or come up with the shortfall out of their own pocket. Attempting to pass the "devaluation" on to you at this late stage is a bit underhand imho but probably quite common. Can you afford to drop at all or are you going to have to renegotiate with your vendor to meet it if they can't budge ?

Hope you resolve this, good luck

bran · 17/07/2004 18:28

What a pain. It could be that it's not your buyers that are trying it on, but the mortgage company. If the mortgage company think that house prices might be about to drop they may have told their surveyors to undervalue houses so that if they do need to re-possess they don't end up with a house which is worth less than the mortgage. This is a totally immoral approach, which might actually cause prices to drop. I think that your buyers your estate agent should be pressuring the company to raise the value, and the buyers should also be checking out other mortgage lenders.

Hope it all works out, remember people who work in mortgage companies like a quiet life, so make sure they don't get one until your sale goes through.

Blu · 17/07/2004 19:11

Have either you or your estate agent seen the valuation that shows the lower value?

Stick to your price: if they really want it they can arrange a new mortgage from a different company v quickly, if S Widows are withholding the full amount.

iota · 17/07/2004 19:27

IME mortgage valuations do come in under the asking price of the house - it's happened to me twice, suggesting that I was paying over the odds.
I think they do it to protect themselves as Bran said. It can cause a problem for the buyer if they don't have a big deposit as the mortgage company will only lend to the amount of the valuation and might chage extra for mortgage protection insurance (or have they done away with this?)

Original poster
Beccarollover · 17/07/2004 19:58

Yes - im not entirely sure how much they are relying on for the mortgage

When my solicitor rang their solicitor, their solicitor [stupidly?] gave away that they had the money for the difference.

I dont think my estate agent has seen the survey no

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Original poster
Beccarollover · 17/07/2004 20:04

Its after 5 now, Im obviously not going to hear back from estate agent today

Im so gutted, I have a very bad feeling it will all just fall through

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sponge · 17/07/2004 20:14

If they've got the money then I'd stand firm. You may end up budging a bit but let them make you a new offer and see what you think, don't give in.
Generally the mortgage company's surveyor will value the property for the asking price, or less if the buyer is not borrowing the full amount. This protects their client - the lender - if property prices do fall. They will never value at more than the asking price so they have a brief to work to.
You'll probably find that your buyers are asking to borrow 105k, hence the valuation. However they have the rest and they know from their own detailed survey that the house is worth the 115k they have offered.
I really would put your foot down and see what happens. They're likely at least to try and renegotiate rather than walking away when they've invested in an expensive survey, solicitors fees and they're only a few days off exchange.
We did this when we sold our house. I think our buyer really thought we'd all just wait while he fannied about. We said we were putting it back on the market and he was suddenly ready to exchange within 2 days.

shrub · 17/07/2004 20:24

fingers crossed for tomorrow. you could try in a real non-agressive way for example: 'we would really like to help you with this but we haven't the extra funds to cover buying our house'? you could even contact them direct if you have the numbber - at least you've tried and you make get more sense from them directly?

shrub · 17/07/2004 20:29

whoops dreadful spelling but you get the gist!

Original poster
Beccarollover · 18/07/2004 12:51

Hoping to hear further from the estate agent today - please keep everything crossed for me, Im feeling really sad at the prospect of losing our house.

DD said to me last night when I was tucking her in for bed "Im going to be SO happy in our new house Mummy Im going to just run round and round it"

I felt like shit and wished I'd never told her about it until it was a done deal

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littlemissbossy · 18/07/2004 12:56

keeping fingers crossed here for you becca, good luck

elliott · 18/07/2004 13:05

Good luck becca. I really do think you should stand firm (really hard to do I know) and don't contact the buyers yourself - you're likely to start feeling sympathetic and give in to them!
Remember - they have the money, they offered the money, they want your house, they agreed the price. I really think they will go ahead at the ageed price (or maybe a little lower, but don't offer first!)

Original poster
Beccarollover · 18/07/2004 13:10

Right, estate agent just rang - she has been on to the woman at scottish widows to put them in the picture that the survey was inaccurate - the woman said they will up the mortgage offer if the surveyor agrees to change it.

My agent said the thing he noted on the survey is because the house is on the flight path BUT the whole friggin' estate is on the flight path not just mine so mine should still be valued in accordance to the other houses selling recently.

She is faxing all of the comparables over to the miserable git now and ringing me when she has spoken to him OH MY GOD PLEASE LET HIM CHANGE HIS MIND.

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Pes · 18/07/2004 13:19

[fingers crossed emoticon]

melsy · 18/07/2004 13:29

lots of luck . Mantra this morning is : change- your- mind -surveyor- change- your- mind- surveyor- change- your- mind- surveyor.

Original poster
Beccarollover · 18/07/2004 15:01

...........still no word........tears hair out emoticon

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CountessDracula · 18/07/2004 15:06

AAAARRRRGGGGGHHHHHH

Hope you get news soon

bunnyrabbit · 18/07/2004 18:23

Well????????

shrub · 18/07/2004 18:40

hang in there.....

Original poster
Beccarollover · 18/07/2004 20:49

Well another day past and still no wiser

I rang agent again this afternoon - she faxed the comparables and a letter from her over to the surveyor this morning and hasnt heard back - she said she would ring him at 4.30 and ring me if she managed to speak to him - I have had no phone call

Feel sick

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