Our house has been hugely down valued is there anything we can do?

[FannyGlum]

We sold our house privately, and accepted an offer £5k under the price valued by 3 different estate agents. We've had an offer accepted on a property, everything was moving well, searches done etc.

Now our buyers have come back saying that their lender's valuation values the house at 15k under the agreed sale price. They can't afford to make up the short fall and we can't afford to drop by that much. Also I disagree with the valuation, we had 3 Estate agents value it, I've done a zoopla valuation and I've looked at recent sales. There are are other sales on our road, but they have one fewer bedroom, no garden and are terraces not semi detached.

Is there anything we can do except put house back on market? In doing so I think we will lose our purchase, as they have already lost a sale once and are desperate to complete (already moved out, living in rented)

[BackforGood]

I think we can all agree that estate agents are "optimistic" in their valuations.... in a "If you are lucky and the right buyers come along" type way and surveyors need to be conservative and consider "if the mortgage were defaulted on and the lenders wanted to sell quickly, what could they get in a poor market"

Neither profession needs to be criticised, it's just looking at things from a different angle - not, of course, that that helps OP or others in this situation.

[HolaWeenie]

Both statements are correct, surveyors undervalue and estate agents overvalue, homebuyers beware!

[ThroughThickAndThin01]

Estate agents might overvalue in a rising market, when if something doesn't sell then the price will catch up. They dont overvalue in a stagnant market, there's no point spending time and money marketing a property which has no hope of selling.

[FannyGlum]

I have seen proof yes, and I trust them as they are family friends. They also know that we don't have much budging room so we will have to drop out if there is no change.

Their bank have said they can appeal, but will not accept an independent valuation. My point is not so much that it is lower, but so much lower. There isn't anything comparable that has sold in the last 3 months near by. Either it has off road parking and therefore is slightly more (than our price) or has fewer bedrooms/no garden and is closer to the surveyor valuation.

I found out it happened to a friend and they appealed and the shortfall was made smaller to they met in the middle to cover it. Then the buyer dropped out. Another lender valued it as only £3k under price. That's a big difference!

[bilbodog]

Suggest your buyers go to an independent financial adviser who will be able to get mortgage quotes from many different lenders whereas a bank can only offer the products they have access to. This way they may get a better mortgage deal and different valuation. Other way is to see if the whole chain can reduce their prices - i have known this to work and sometimes the estate agents will chip in to make the chain work. Good luck.

[wowfudge]

Ethereal are several references to Zoopla valuations on this thread. Unfortunately Zoopla is notoriously unreliable as home owners can manipulate the values. Best to look at the actual Land Registry website data or Rightmove sold prices which reflect that data, albeit after two to three months usually.

[ElsieMc]

Well I have just entered my own house on Nationwide and it valued it at £316,000 when two neighbours have sold at £465,000 and £435,000 on asking prices of £499,000 within the last two years. Guess my will sell fast then!

The reality is that a house is only worth what someone will pay, but I agree with those who say that the surveyor has erred on the side of conservative here as surely they would have local information to hand here.

This is pretty worrying for all concerned here as if the valuation is not challenged, there will be a lot of property chains going down the pan unless of course every single person in the chain agrees to drop their price!

We sold an old cottage for £125,000 around twenty years ago and the valuation was £115,000 but the buyers would not show us the valuation. We put it back on the market and I was present when the surveyor went round this time and he told me there and then that it would "value up".

[MrsSparkles]

Can you speak to your sellers to see if you can reduce the price along the chain? I've heard of this happening and whoever's at the top accepting a reduction in return for it not collapsing? Maybe not for the full amount but there may be some rom for negotiation>