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Original poster

Mortgage valuation lower

38 replies

WBWIFE · 16/03/2019 18:39

Hi just had mortgage valuation back and they've valued it 1k lower the what we've offered.

Do you think this is just a typo? What happens if it isn't a typo? Never been in this situation before haha.

OP posts:
SuperLoudPoppingAction · 16/03/2019 18:41

Can you afford another 1k deposit if it isn't a typo?

Original poster
WBWIFE · 16/03/2019 18:44

@SuperLoudPoppingAction well yes, but I also don't want to over pay - the property needs stripping back and full renovation.. only wanted to pay 285k at the most in the beginning really.

Didn't know if in this situation the vendor would have to come down?

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Fleabag123 · 16/03/2019 18:44

Hi there

Did you have a survey at the same time and/or did they list any reasons for the downvaluation?
The previous property we offered on was downvalued by 10k but they listed their reasons for this.
If it’s just 1k it could be a typo. But if not then you need to decide whether to negotiate that amount off with the seller (depending on the reason) or meet halfway. Otherwise you’d have to make up the shortfall yourself.
Have you got a mortgage broker or can you speak to the lender directly to verify?

Original poster
WBWIFE · 16/03/2019 18:46

@Fleabag123 I have got a broker so I'll speak to her on Monday.

We only wanted to pay 285k max anyway but eventually went upto 291k as per vendor request basically. The whole house needs stripping back and out and renovating in full.

We have the additional 1k but didn't know if in this case vendor would have to come down at all

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Mammajay · 16/03/2019 18:50

There is no have to in this situation, but you might persuade them to reduce the price. Valuations are often lower as the surveyors don't like overvaluing. I think you would have a good chance

Fleabag123 · 16/03/2019 18:52

I think it totally depends. Some vendors would come down, others would split the cost and some will dig their heels in.
If the vendor has already been stubborn they may not want to concede. I still think knowing the reason they may have taken 1k off would help with your negotiations

NicoAndTheNiners · 16/03/2019 18:56

It's a good bargaining tool for sure. Because any other potential buyers will have the same issue and many won't have 1k cash to stump up so the vendor may not want to take the risk.

Original poster
WBWIFE · 16/03/2019 19:18

@Fleabag123 it was originally up for 325k for 6 months and no viewings and no offers. She dropped to offers in excess of 295k. We were first to view and first to offer but had to negotiate up.

Our offer was based on them removing the carpets and underlay so the property can air and she accepted our offer on that basis and is now trying to leave the carpets and all her crap in the property for us too.

The valuation just says it's worth 290k based on the current state of the property. (Shithole😂😂)

It also says they believe the property may have some asbestos so I'm presuming that is likely in the artex ceilings?

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lboogy · 16/03/2019 19:21

You can challenge valuations. I did on my own place when I remortgaged and was successful. The broker told me it was very rare that this happens so I was lucky I guess

lboogy · 16/03/2019 19:21

If you challenge then use your own market research cross referenced against the square footage of houses you find

Original poster
WBWIFE · 16/03/2019 19:45

Just read and hey believe asbestos is in the property too. Inpresume the old artex ceilings.. feel a bit worried now!

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Decormad38 · 16/03/2019 19:51

When a survey was done on this house we move into the surveyor valued it less because he said it was in not as good decorative state as next door and that house sold for x amount . He failed to look properly because if he had he would have seen that was a three bedroom house and ours is a 4 bedroom with an extra lounge downstairs! He also said the garage had no electricity. It clearly did. So basically a shoddy effort!

CostanzaG · 16/03/2019 19:57

That's nothing! Ours came back £30k lower!

Original poster
WBWIFE · 16/03/2019 20:12

@CostanzaG I know it is 'nothing' but will we not get our mortgage offer as it's valued as less?

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sandybayley · 16/03/2019 20:16

Surely the lender is only interested in what it is lending you? If you have a deposit £1k is neither here nor there. £1k is a tiny amount compared to the property value and no surveyor can asses a property that confidently, there has to be a margin of error!

Buddywoo · 16/03/2019 20:28

Surveyors used to spend a lot of time going round estate agents to find out how much similar properties had sold for. Now presumably, they can do it online. £1000 is not very much and probably because the property needs updating. I would ask for a reduction but if they won't reduce you will have to decide how much you want the house. If I really wanted it I wouldn't let that put me off. The surveyor is just covering his back. Their job is to comment on the faults they find and they really have no idea of value, they get that from estate agents. They always err on the side of caution.

QuietlyQuaffing · 16/03/2019 20:47

They don't have to come down at all, there is just no sale if you can't agree a price between you.

From what you say it sounds like the vendor is being a bit greedy and your surveyor is warning you of this. It does give you some evidence to negotiate an extra £1k off which would help towards roof repairs or something - though there is no predicting what the vendor's reaction to that will be. If I were you I would phone the surveyor and have a quick chat through the findings. They tend to be more forthcoming over the phone. It sounds like a huge money pit, which is not necessarily a showstopper if you are forewarned and understand the risks, but could be a disaster if you don't.

CostanzaG · 16/03/2019 22:23

I imagine £1k won't make a difference but that will depend on you deposit and other factors.
Can you ask the vendors to meet you in the middle?
We didn't lose our mortgage offer even though the difference was huge. I think it's relatively common for it to come back different ....it certainly is where we live.

dragonsteeth · 16/03/2019 22:34

I've had the valuation come in lower than my offer twice before.

The first time the vendor refused to budge, and their estate agent suggested I stuck the 4K difference on a credit card. I refused and the house went back on the market for another 6 months and they ended up having to accept £15k less, so serves them right for trying to be greedy.

The next house I offered was also valued under my offer and the vendor reluctantly accepted this and the sale went through.

Forward the valuation to the solicitors to support you reducing your offer. If they reject it you will need to decide whether you're happy to pay that little bit extra

MaybeitsMaybelline · 17/03/2019 07:27

Speak to the building society first. dS is buying his first house at the moment for 105k. The valuation came in at 103k and the mortgage offer was therefore less. Cue DS having a meltdown and panic as 2k is a lot to him as a FTB.

After speaking to the BS it turned out it was a simply holding the 2k until he had essential work done. This was replacing the extension flat roof which DS had negotiated as part of the sale. The vendor did this and after he provided the guarantee they released the full amount.

OrzeiliHapiol · 17/03/2019 07:37

The value for sale purposes is the value a buyer is willing to pay right now that the seller is willing to accept. It's not that unusual for that to be higher than the mortgage valuation, which is the reference value for what the place might be worth if the bank have to repossess it after you default on your mortgage - that value doesn't take into account the feelings of reluctant sellers or enthusiastic buyers so some slight difference is normal. A difference of £1k is a bit silly though. Most surveyors would just use the agreed sale price in that circumstance and would only officially quote a different figure if the difference is more than £5k. It will make very little difference to your finances in the long run.

Original poster
WBWIFE · 17/03/2019 07:44

@OrzeiliHapiol

I don't really understand it.

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Original poster
WBWIFE · 17/03/2019 07:46

@MaybeitsMaybelline they said the valuation had passed then sent this..

Weirdly.

It's also through a mortgage broker so I'm not supposed to be speaking to the mortgage company really

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stopwining · 17/03/2019 08:03

Just wanted to jump in as an estate agent for 12 years!
In this situation you can ask for a renegotiation based on your mortgage valuation. Just say we want to on the basis we don't want to pay more than it's worth. 90% of the time the seller will usually agree as if they said no, and you chose not to buy, the same think will likely happen again.
Sellers will sometimes hold out for the original agreed price but this is more usual in better markets where there are multiple buyers per property.

I agree with PP though 1k downvaluation is unusual.

And of course you can speak yo your mortgage provider!!! Broker or not it's still your mortgage.

Original poster
WBWIFE · 17/03/2019 08:05

@stopwining thank you! So do negotiations go through estate agents then not solicitors?

Do you think I should be negotiating due to the asbestos artex too? It says they believe there is asbestos in the property, so should I get an asbestos specialist in to quote for removal and then ask for a deduction based on that as well as 1k price drop?

Thank you. I've never had this before with my other two properties, always been worth the value x

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