Buyers want valuation before exchange

[everycloudandallthatjazz]

Some hand holding please. Messy split with me and ex... We are about a week away from exchange on our property and so far it has been plain sailing....

Our (cash) buyers initially said they didn't want a survey done as house is relatively new build.

Now they have told us the conveyancers told them they may be overpaying and told them to get a Home Buyers. They allegedly said to the agent (when we said we won't drop the price if that's what they're angling for) that if the survey valuation comes back low they will just walk away. What the hell??

Would you be alarmed by this? I feel sick with worry!

I don't think you need to panic yet. I would think it's normal for a conveyancing solicitor to recommend a valuation. They've missed doing it earlier because they didn't think it necessary. It will probably come back fine. Do you think your house is overpriced? Is it similar to others of the same type in the area? The one who came here spent maybe 15 minutes. Just measured the outside of the house and had a quick look round.

I don't think it is overpriced because the road is very sought after and well regarded. However all the houses are different and not many recent sales like ours so it is hard to get a ball park figure. Newer builds than this (very similar size) on an adjoining road have come onto the market priced £100k + more than this.

I guess what set off alarm bells in my head was that they dropped in that they would potentially walk away at this stage. It has made me think - if they are that keen, why would they say that?

purplecollar was that for a Homebuyers? 15 mins, really? What was the valuation like in terms of offer price?

I don't know - as I didn't pay for the report, I'm not allowed to see the results. But really, he just seemed to measure the house foot print from the outside, the garden and really only had a quick look round the inside of the house. I think generally they don't try to throw a spanner in the works.

It's hard to tell if your buyer's getting cold feet or has just been advised by the solicitor to get a valuation, as a matter of course.

I can empathise though. Our sale has been going on for weeks now.

When I got my home buyers they undervalued the property I was buying but only by a few thousand. It wasn't enough to worry me or induce me to haggle at all. It's standard practice to advise people to have a survey.

Mine was very detailed to the point the flipping surveyor had attempted to move the bath to look behind it

Update: they have had the valuation and home buyers and were supposed to talk to the surveyor yesterday morning and get back to us with a decision yesterday. They didn't, so agent chased. They said they haven't had his valuation yet and would let us know today. WWYD? Looks to me like they are either getting cold feet or wanting to drop their price at the last minute.

The contracts have all been signed and I feel sick with worry. They have been dithering about the price for a whole week now.

It does usually take a few days at least to get the valuation and home buyers report through after the survey so they could be telling the truth. Give them a few more days to get the survey through.

If the contracts are signed they can't drop their offer??

Is that true InfiniteSheldon? I thought the contracts could be amended at this stage as they haven't been exchanged.

The contracts have not been exchanged, anything can change until then.

TBH, you probably got their backs up by telling the estate agent you wouldn't drop the price if that's what they were angling for. It's quite a defensive statement when there has been no suggestion of asking you to drop the price. Even if they are cash buyers, they'd be mad to buy it without even a basic survey.

The reason we said we wouldn't drop is because the sole purpose of them getting a survey was to get a valuation because they allegedly thought their offer was too high. They should have done this weeks ago, not at the brink of exchange when contracts have been signed.

If they had just said "we want to check nothing wrong with the house" then that would have been ok, but the fact they mentioned price......

The solicitors will have recommended a valuation as a normal part of their advice ie they won't have had a look at the specific house and had a view on the pricing. It does look as though your buyer may be lining himself up to try a price chip but to be honest there isn't much you can do unless you're in a position to tell them to exchange today or you'll pull the papers (and you are prepared to follow through on that). It's not all that unlikely that the valuation will come back a bit lower but that doesn't necessarily mean the buyer will chip. It's all about negotiating and who has the upper hand. Not great that it's being done at the 11th hour but try not to take it personally.

Someone asked about the contract - until it's exchanged, it's fine to put changes in - this happens all the time and although changing the price is a big thing for you, it's only changing a few numbers on a piece of paper in terms of the contract so can be done (provided of course you've both agreed to that).

It is so hard not to take it personally... they seemed to love the house and put an offer in almost straight away, came back to measure up... then six weeks later, this! They insist they won't chip away at the price. They'll either proceed or withdraw.

I can't drop anyway as I will lose my next house so the chain will collapse as my vendor won't drop.

Nervous wait 😬

It's all part of the buying / selling game I'm afraid. They will probably try to drop the price - just refuse. They've invested time and money in buying your house so I doubt they would really want to walk away.

Try NOT to take it personally! Easier said than done...

And yes, they should have got the survey / valuation done earlier. They will not be able to get a mortgage without this.

As someone else said if the contracts are signed and exchanged there's no way they can change the price, they should have had a survey before they signed if they wanted it

You initially sign but do not date the contract - solicitors will date the contract on exchange. So a signed but not dated contract has not been exchanged and can still be amended.

They are cash buyers so this isn't to do with a mortgage... they are an older couple downsizing from a 5 bed to a 4 bed.

You sound as if you're working yourself up somewhat prematurely- just hang tight. If you're confident in the price of your house, there should be no problem.

From their point of view, it's a huge huge investment and they just want to check they're getting it right. Or they're looking for ways to drop the price. But you can always refuse that.

Try not to worry. Buying and selling is so stressful you need to deal in may with the problems you actually have, not the possible maybes.

I'm reasonably confident but this road is a very mixed bag in terms of house prices and we had variations of £100k from agents in terms of what they would market the property at and the offer is kind of midway along that range. It's very hard to find a good comparison to use in the area, although we do have one a mile or so away.

I know surveyors do undervalue as well sometimes, hence I'm concerned if the buyers are now allegedly going by a valuation which may well be conservative.

Well what they've said is odd. They think they have offered too much, but they clearly like and want the house or they wouldn't have got this far along. Sounds like buyer's remorse. Perhaps they have done their sums and realised they won't have as much in the pension pot as they had hoped. But you are worrying about something you have no control over at the moment.

I know wowfudge - I think it is that, but so hard to stop worrying. My ex was a nasty piece of work to me, controlling, vicious and manipulative - and getting this far has been such an ordeal with two young DC. To think I could be out in a few weeks or back to square one is soul destroying.

Unless there's anything major then you'll be fine. I would never buy a house without a survey. I was unable to properly get excited until we got our survey back - which came in yesterday and valued fine. It is nerve wracking but sensible for them to do it.
Ours has given some sensible advice re maintenance and things you'd expect in a house that's been lived in. Try to stay calm, it's a small hurdle that's all.

Is it possible they've had similar with their own property and that their buyers are also having second thoughts re pricing and as such they're trying to follow suit re the house that they're buying i.e. Yours?

It's a very volatile time to be buying and selling at the moment, brexit, new government, uncertainty over political future both domestically and in terms of Europe and this has IME had an impact on the housing market in much of the country. At this point in time it's very difficult to take previous prices into account because while many houses are going on the market for similar prices, in many areas they're taking much longer to sell because buyers are being cautious.

Personally I wouldn't be looking to buy or sell at the moment, but if I were halfway through a sale and something came up re the valuation I think I would sooner walk away and look again a year down the line as re-enter back into the pricing game. And if they're cash buyers they don't have to move right now so walking away may be a preferable stance for them until the market stabilises.

I think they have to move as they can no longer stay in their current property as it is too big and too many stairs (from what they told me). But I do agree, it is not a good time to buy / sell at the moment and things are taking longer to shift.

I do wonder also if, like you say, their buyers have tried to drop the price and they are trying to pass this along the chain. Hoping to hear later on today. Eek. Appreciate all the replies, I really do.