What happens if a new build is down-valued

[EssexMummy123456]

Can anyone tell me what happens if you put a reservation fee down on a new build property (the one I'm thinking of requires 2k) and the valuation comes back less - the sales people are not forthcoming other than telling me it hasn't happened up until now.

How much less?

I had this. I bought a new build for 60k (it was a LONG time ago) and it was valued at 54. I was able to buy it for 54. The developer won’t want it known that the houses are worth less than the price, so will bend over backwards to sort it out.

I think it might also depend on the LTV.
My DD bought a new build with a HTB Equity Loan and maximum mortgage amount. The new build was down-valued and developer wouldn't budge on price. DD had to obtain a mortgage from another lender, which added time to the transaction. Not sure what the house is worth today but am pretty sure it's less than the price paid.

It’s fairly common for a new build to lose value immediately after purchase. Like a new car does. Someone I know lost £50k 🤦‍♀️

If you can use the valuation to drive down the purchase price, definitely do this. Thanks

Thanks?! Thanks autocorrect 🤦‍♀️

I guess i am worried that i would lost the reservation fee if the mortgage company felt it was worth less and the developer wouldn't budge