Anxiety about mortgage valuation

[HoneyIshrunktheBiscuit]

Someone calm me down a little as I'm definitely worrying prematurely.

Offer on the house we loved was accepted today. £15k over the guide price but in Manchester that is typical for the market at the moment.

EA made a bit of a fuss saying because we offered over asking then if mortgage valuation comes in lower we'd be expected to make up the difference. Now I'm starting to panic that our offer is way too high and our mortgage valuation is going to be 10 or 15k under our offer which we just can't afford. I've convinced myself that the values will think we are paying way too much - I have a habit of assuming the worst.

Can anyone possibly give me any light on this???

Usually in this situation if the valuation was lower than your offer you go back to the seller and tell them, and negotiate down. If your lender values it as that it's likely others would, so they'd be unlikely to get a buyer at that price unless for cash.

It's a tough process, but steel yourself and you'll get the right house for you. Hope this helps.

The EA is right, unfortunately.

Was there a particular feature of the house that made it worth more than the guide price for you?

The house is recently renovated to a high standard with period features in tact. All white goods included (even a v.expensice range cooker) and we would have to do no work to it. We felt the house was worth what we were offering to us. We also researched and there were properties on the same road who sold for the same price we offered that are the same layout earlier this year.

Every other house we have looked at has gone for over asking price within a week of going on the market. It's genuinely how it is in Manchester at the moment but I also am aware that nationally house prices are stalling.

The house is worth that much to us 100% but I'm worried is mortgage valuation doesn't agree then we are going to lose it. EA implied vendor would not negotiate for any lower if this happened.

EA is right, particularly in a sellers market which you describe your area as. You normally have to make up the difference from your deposit - or something to that effect.

The estate agent isn't right- yes that's an option but there's also the option to walk away.

No one can force you to make up the difference.

Things like white goods aren't going to increase the value of the property for mortgage lending purposes.

If you don't get the valuation you need maybe you could lower the offer and pay the difference for the white goods separately if they're that high end (no stamp duty on them then either)

As bear said, mortgage lenders won't count white goods in the value! Do you have the funds to pay for them separately?

Good luck with the valuation - buying and selling is always stressful and I hope it goes well for you.

Just wait and see!

They can't force you to do anything. If the valuation is lower you can either try to renegotiate the price, walk away or find the extra money to pat the offered price.

Just wait and see, I agree. At the moment, you are making a fictitious problem.

If the valuation is lower then offer a lower price. The sellers can take it or leave it.

If they leave it then, have a little cry and start looking in Rightmove again!

*on

Op I have been in the same position as this just these past months. I own the house that was offered 15k above asking price on as its such a popular area. I was very worried that after valuation it would be down valued but it was not. The surveyor will look at comparable house prices both sold and ones up for sale/ completed recently and use that as a guide.

Ps when you say you can't afford it what do you mean? Do you mean the valuation would affect the mortgage offer so you cannot borrow as much as you would need or the interest rate maybe higher?

It is really tricky but you are going to have to wait and see and hope if the market is buoyant it will be ok.

I agree that its not an issue yet. But I am also in Manchester and know the position regarding houses going for well over the asking price. Its been the reality of the market for quite a while and any valuer with knowledge of the area with access to details of completed sales will be aware.

I think if the mortgage valuation comes in lower than the for sale price you def have negotiating room. Less so if the valuation comes back between the for sale and your offer. You can still negotiate though and especially if there is any change in market sentiment like there seems to be down here. The EA is always going to say what he said.

Market certainly sounds a lot hotter up there than down here is SW London!

Thanks - I have a habit of feeling very anxious over the worst case scenario before it's happened.

I'm trying to not get too attached to the house but it feels impossible.

@HoneyIshrunktheBiscuit my experience is that the mortgage valuation doesn't exactly take into account things like them leaving the range cooker. they literally just go off nearby comparables.

So e.g. if your house has a lovely unobstructed south facing view (for example) and the house 5 doors down faces a block of flats and sold for £20k cheaper 3 months ago... they use that as a perfect comparable.

hipster that's what I'm expecting and worried about.

Hoping to get the mortgage valuation arranged ASAP before paying for our own survey/solicitors fees.

Sorry I didn't mean to be pessimistic - hopefully like other posters have said the valuer will recognise the buoyant market in Manchester.

Good luck and good idea to get the mortgage val done ASAP.

My estate agent advised that in this situation they could provide evidence of why the valuation may be wrong if they have proof of completed sales of similar properties for the sort of price you are paying. With that, the seller taking a little less and you legitimately paying separately for white goods and reducing the price paid for the property you'll probably be able to do a deal.

We've complied a list of properties within half a mile which are the same size and were sold in the last year for the same price or more than what we have offered. Would you include smaller properties as well in the list if they sold for more than your offer? For example this our is a 3 bed semi and I've seen that a 2 bed terrace house on a nearby street was sold last year for 45k more than our offer. I can't determine from the old listing anything that would value it that high.

The estate agent is talking rubbish.

This happened when we bought our current house. Several interested buyers - went to sealed bids. At least one bidder was a cash buyer. It went to us.
Valuation came in 20k under our offer. Estate agent said he doubted the vendors would take 20k lower (I'm guessing the cash buyer offer they got was more than the valuation).

We were convinced that the house was worth more than the valuation and argued the case with the valuer - provided evidence of other house sales, etc. The valuer agreed to up the valuation to 10k less than our offer.
We kept the vendors informed with what was going on and they agreed to accept the revised valuation of 10k less than our original offer. There was no expectation that we'd make up the shortfall.

It was stressful but all worked out in the end! I actually think that the fact they knew we were fighting the valuation made the vendors a bit keener on selling to us - they knew we were committed to the sale.