Mortgage valuation lower

[WBWIFE]

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.

It's no problem I know how stressful it can be!!

I think I would get an asbestos specialist in to check, and if it is very expensive you could potentially ask for a further reduction. However I would be wary of taking that course of action, if you've already gone down the 'it's been downvalued' route on the 1k as it could potentially look contradictory.

Surveyor reports are a nightmare, always there might be, the potential of, get a specialist gas engineer/electrician/damp specialist in because they have to cover their backs, and they cannot possible be experts in every field.

Does the report say - there may be presence of asbestos and we advise to get a specialist??

Oh and WBWIFE negotiations can go through either EA or solicitor, depends on the relationship I guess but an EA if good at their job can advise their client of the beast way forward in a friendly and conversational manner.
Solicitors sending it over in a letter may not come across in the best way to the seller (depends what they aRe like) so may reduce your chances of getting a price reduction.

I would get an asbestos survey done with an estimate of the costs to repair and independently think whether you can afford this. It sounds like the survey includes this within the valuation rather than a 'property valued at 290k once remedial works to asbestos have been carried out to satisfaction'.

As regards the drop of 1k, if the change in the loan to value ratio of your mortgage offer, it might put you into a category which has different terms, ie 75% mortgages are cheaper than 85% mortgages and in fact some lenders might not offer the new loan to value so you may need to come up with extra deposit.

You can speak to mortgage company. This is why you have a survey, to protect yourself and lender.
If the survey identifies work needed you reduce your offer to cover the cost. Sometimes part of mortgage is withheld until you do the work.
Only if dream house would you pay extra, or you will lose ££ if you sell.
Bargain the price down or move on. Vendor is unrealistic

We had this to the tune of £7k or thereabouts. Vendors wouldn't go lower which was fair enough as we felt it was a fair valuation. We needed to raise the extra £7k as obviously the mortgage company would only go on the valuation. We borrowed it from family in the end.

Estate agent is working for the seller, they are paying for the service. However agents make more money if they sell quick, so don't mind if you offer low.

If survey is for mortgage it only concentrates on value. You can pay for your own survey which will identify problems, or ask tradesperson or expert to estimate cost of repair. We sold a house with subsidence, needed underpinning, surveyor helped a lot, and made report for insurance. I wouldn't get involved with damp or asbestos, but take advice.
Estate agent handles the sale, negotiates price, not on your side but may advise seller to be realistic.
Mortgage broker introduces you to lender, lender protects themself financially.
Solicitor checks legality of sale, does checks on location etc and hands over the money.

I wouldn't worry about the asbestos too much. It is perfectly safe as long as it isn't disturbed. So if you are doing a lot of building work then it is worth getting an asbestos survey but otherwise it can be left Insitu.

@Geneticsbunny we are moving walls so think we better get a specialist in to advise x

@stopwining I haven't asked for any reduction yet so was thinking get a specialist in first to see how much it's going to cost.

I think it must be in the artex ceilings, which is only in a few rooms but can't remember which! So need to check to see which walls were knocking down.x

@Missingstreetlife vendor is unrealistic I think she originally had on for 325k!! The house needs full renovation and absolutely stinks of wet dog and cat litter. Everything needs to be stripped back and start again.

The vendors estate agent is our estate agent and also our buyers estate agent so I'm hoping they'll be helpful x

I know someone who has just had their house valued as £10,000 under what their buyer has offered. They have completely redone the house and have guarantees and paperwork for everything. Paperwork was offered to surveyor and he declined yet used the fact he hadn't seen evidence of the work as his reasons for devaluing.

Also they use what other houses have sold for in the area recently as a guide. In this case nothing of this size or spec have sold in years close by, the houses that have sold are either smaller or much larger. So it seems he has used the sales of the smaller houses as a guide for what this house is worth.

As others have said, non of you 'have' to do anything. You can ask the seller to drop the price by £1,000 (which in your position I would probably do) and if they say no and you still want to buy and have the money pay the additional £1,000 deposit yourself.

They are always going to write there might be risk of asbestos in artex ceilings though, in any of the literally millions of houses in this country that have artex. If it's just a sentence like that, I don't think that would be grounds to demand a reduction, whether you're moving walls or not. You just need to factor in a small risk for your own calcs on affordability for the work you want to do.

Surveys are full of stuff saying it may need a rewire, it may need a whole new central heating system etc. This is the surveyor covering their back. Ring the surveyor on Monday. Ask open questions, ask if you should be worried about any specifics that are troubling you.