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Original poster

Valuation just been done

78 replies

Fern204 · 13/05/2020 16:40

Our house selling and buying process has been dragging on for a year now. We have our buyers and the chain is well advanced. I have asked our EA to update the chain this week to see where it is at. The house we are buying had been sold in December and their buyers were furloughed a few weeks ago. We put in an offer and had it accepted the day it was relisted. Searches ordered, mortgage application done. Valuation came back today as 5% down. This makes about 30k difference. However, the surveyor said it was likely to be valued higher by the end of the month, as there are no comparable sales happening right now. The bank are happy to lend what we want, as our LTV is about 45%.

We have a proper viewing on Friday, and haven't mentioned the valuation to the agent. What would you do? This is a house we will be in for potentially 10years plus. It ticks all the boxes. Their chain is ready to exchange once we are. Interested in views.

OP posts:
Nuked1981 · 13/05/2020 16:44

I’m confused!

You’ve put an offer in but not viewed but already had a survey done?

Original poster
Fern204 · 13/05/2020 16:49

We viewed it online, seen it from outside, we know the area and the houses really well. So yes, put in an offer, it was accepted and the sale is progressing. I just don't know how I want to handle a lower valuation. We could ask for a reduction but risk losing the house, and potentially our buyer.

OP posts:
pinkpepperclove · 13/05/2020 16:54

Listen Don't ask, don't get - As long as you approach in a non pushy/threatening way. Most people would understand why you are asking.

If it doesn't work and its a forever home then its irrelevant you will make your money back over the years. Money comes and goes, but if thats YOUR house.. then go for it!

HappyDinosaur · 13/05/2020 16:58

Completely agree with @pinkpepperclove if it's the house then you could ask, but maybe don't get hung up on it. Think of this as a good test as to how much having that house as your home means to you.

Original poster
Fern204 · 13/05/2020 17:39

That's my thinking. I will wait until we know for sure our chain is holding firm, have the viewing on Friday and then have a chat with them. It's not a deal breaker if they wont budge, we are planning to be there a long time. I'm not going through this again!

OP posts:
Africa2go · 13/05/2020 18:36

All i would say is be careful. If the surveyor says its only been down valued on account of timing and would be worth more in a couple of weeks, as the seller, I'd be mighty cheesed off that you were looking for a £30k discount on account of 14 days or so. You need to be very careful you dont come across as game players and the seller pulling out. If it sold again the day it was re-listed, and is likely to go up in value again if it goes back on the market and is valued at the end of the month, there is very little incentive for the seller to stick with you & agree a discount.

jimmyjammy001 · 13/05/2020 18:38

I'm confused in why you would not ask for 5% off, all experts are predicting at least a 10% decline in house prices over the next year and an expert valuer has stated that the house is worth 5% less and you are prepared to pay 5% (30k) over what it has been valued at, that will put you at a straight away loss

Africa2go · 13/05/2020 18:43

@jimmyjammy001 the OP says the surveyor said it was likely to be valued higher by the end of the month

Original poster
Fern204 · 13/05/2020 18:56

That's why I was torn. I am not one for playing games. We have a complete chain which is advanced. We came in as the last link after they lost their buyer. It probably would sell again quickly, and I still think we are paying a fair price. Even if it drops by 10% in the next year or so, it wont affect us. We won't be selling or remortgaging, we expect to overpay each year to reduce the balance. Secure income, house is suitable for the long term, potentially into retirement.
We will probably ask, but unlikely to walk away at this stage.

OP posts:
sbplanet · 13/05/2020 19:09

Be interested to know how it goes. You might get it easily or they might get p*ssed off. Do they need the current selling price to move on?
For a house I really wanted I offer more not less, lol. Who knows... :D

tgb2012 · 13/05/2020 20:38

Following 👀

We are waiting to hear from our vendor after we requested an 11k reduction. (From £295k) couple weeks before exchange. Mostly beyond of the shrinking economy but We also have "pre covid" survey which highlights £11-12k worth of work that needs doing so hopefully the vendors will be reasonable...

We are ftb really scared they will get angry and pull out of the sale all together. But it would have been really silly of us not to even ask.
Be interested to hear how you get on OP

sbplanet · 13/05/2020 20:53

@tgb2012 I think that asking for a reduction post survey is very common. Indeed we did that (16 years ago) and settled on a lower figure with our sellers.
You may be ftb's but your sellers will be worried too (unless they don't need to sell). They might think, oh ftb they're pretty clueless maybe this covid stuff (and their survey!) will scare them off. TBH £11k of work (if it's necessary, not just to make it nice) is a reason to pull out! :)

DeadHouseBounce · 14/05/2020 21:56

Can`t see anything on the economic horizon that could even remotely give it a chance of a higher valuation at the end of the month TBH.

Original poster
Fern204 · 15/05/2020 09:22

The surveyor confirmed this morning that he is sticking with the 5% reduction in value. We will talk to the agent after the viewing this afternoon

OP posts:
MarieG10 · 15/05/2020 09:42

Well if it is valued at 5% under, only expect it to continue downwards. Estate agent talking rubbish (as they always do) unless it is a very unique house that will withstand drops in the property market

Viviennemary · 15/05/2020 10:24

You've nothing to lose by offering 5% lower except if they're those sellers who take it as a personal insult and throw a strop. Estate agents want to sell so ignore what they say about prices

tgb2012 · 15/05/2020 12:22

We got our revised offer accepted immediately (4% reduction) so I think 5% is fair

overtly · 15/05/2020 12:27

Why will it be valued higher at the end of the month, this doesn't make sense to me. Anyway I'm of the belief that up to 10% off the asking price isn't cheeky, especially in uncertain times so I'd definitely go back to the vendor and give them a revised offer on the basis of your survey. Hopefully then you'll meet in the middle.

YinuCeatleAyru · 15/05/2020 12:28

I would say something like
"The property has been valued at £30k less than our offer. That's quite a significant difference but we don't want to mess you around. We would like to suggest that we split the difference and proceed with a price £15k less than our our original offer, in the interests of avoiding us all having to start again from scratch"

Winder43 · 15/05/2020 12:55

It is in your best interest to be honest with the EA today. They will know in a few days anyway when the lower valuation has reached the inbox of the mortgage company. They are unlikely to lend against it !
Best option is to ask for a price drop from your vendor and if that is financially unavailable to them, your EA can go further down to chain to ask for a bit of deduction from all. This is were a good EA is worth the money you pay them !! Good luck .

SailingAwayIntoSunrise · 15/05/2020 13:05

I'm with @DeadHouseBounce and can't see why the surveyor would say such a thing in this climate Confused

WombatChocolate · 15/05/2020 14:16

Be realistic. House prices are falling and will fall further .....quite how far and for how long we don't know.

Have you got a buyer on yours yet? If so, expect their offer to drop or if you're listing it, to lower your expectations.

Chances of price rises by end of month seem daft.

Things are moving fast and mortgage lenders won't want to end up giving loans that exceed the value of property. It's hard for valuers right now as the market is moving fast and in a downwards direction.

I would certainly lower my offer.....and I'd be cautious about proceeding to be honest. I'd also expect it might be necessary to lower the offer again if you continue and it drags on before exchange, because it's value today might have dropped further in another month or two. Don't look back to the value of before but forward to the value of now and the future.

DeadHouseBounce · 15/05/2020 14:36

Best not to offer on anything for a while IMO, things are moving quickly, see how it all plays out first.

Feelinghistoric · 15/05/2020 15:52

Estate agents are sounding a lot more positive this week than they did last week. I think the fact that the market is moving is encouraging them. I think if market had been shut for longer, they would have been more concerned. But as it is, it’s manageable.

Original poster
Fern204 · 15/05/2020 16:06

So post viewing, we chatted to the agent. If we ask for a reduction, he has a cash buyer lined up to take our place. Its Brighton, and I do believe him.
We have a chain of 6 below us, and our buyer is secure. But, if it was me, I would prefer a cash buyer, so I take their point.
The chain above is ready to exchange. Our mortgage offer isnt affected by the lower value. The house is better than we were expecting, and we can still improve and add value to it. We are staying with our existing offer, and will enjoy being there for years to come.

OP posts: