Bank valued the property 20k less than what we offered.

[gemloving]

Would you ask to renegotiate the price?

Unless you’ve got an extra £20k cash, then you’ll have to.

No. You've made the offer.

If you need a mortgage then this will be affected. You will need to stump up and additional 20k deposit

I would. A professional has said the house isn’t worth what they’re asking for it.

Or do you think the valuation is wrong? How does it compare to other local houses? What does the estate agent say?

@Soontobe60

Unless you’ve got an extra £20k cash, then you’ll have to.

Exactly.

Mortgage provider will only give you a mortgage for what they think its worth.

Options

1. Make up shortfall yourself
2. Ask for a reduction
3. Try a different mortgage provider, redo valuation. their valuation may be closer to the offer price

No harm in asking, OP. Can you move without relying on the vendor dropping the price?

Our buyers wanted us to drop the price at valuation, our property was down valued by £40k, we refused to drop, as our property had risen in value and we had others that wanted it, should they not proceed at the agreed price. They still went ahead with the purchase.

Good luck I hope it works out for you, it’s a very stressful time.

£20k on a house worth £1m no, on a house worth £200k yes. It depends on size of your deposit, how long you plan to live there, is it an area with few transactions so hard to value the property. It depends.

Whats your LTV? The mortgage could just be arranged with a higher LTV.

The market in our area is very tough to buy in and every house is receiving loads of offers, all over asking price. If that's the same in your area then you risk losing the house if you re-negotiate. Can you afford to buy it anyway?

I definitely wouldn't pay more than the house was valued for. Ever. I'd re-offer what it was valued at or walk away.

House my son bought was valued at £75k, £10k less than advertised and offered on price. Estate agent said she would discuss with vendor. Vendor reduced price in line with valuation. EA told him it often happens. Ask EA to go back to vendor and see if they will offer a reduction. As it £20 difference, they may split difference with you. Also look on report to see why they gave lower valuation. Is there any damp?

Depends. What % of the sale price is 20K? How does their valuation compare to the asking price? Could you make up the shortfall if you had to?

Do you think the down valuation is fair? Eg if they've only done a desktop valuation and have failed to take into account improvements, I would appeal it in the first instance and/or try another lender if that's the case

If I knew that I'd offered way over and the valuation was fair, I'd make up the shortfall if I could.

Renegotiation would be my last resort in this scenario but would if I had to obviously

You could try negotiating but if the vendor had lots of offers they might not drop the price. Depends how competitive the area is. Can you still afford to buy it?

If you like the house buy it, unless you are buying it as an investment rather than a home. If you love the house and plan to make it your home then I wouldn’t worry.

When DP and I bought our first house together, the house I fell in love with was overpriced by about £15 - £20K, even the estate agent hinted at this, but they refused to drop the price so we offered FAP, which they then refused claiming they had a higher offer. We did not want to get in a bidding war so walked away, but eventually they came back to us as their ‘buyer’ had dropped out. I just think they were trying to push the price higher, we bought the house and loved it for the 10 years we were there.

Yes because the bank valued it at that price.

Despite EAs thinking its just an opinion it is not. I think this is happening alot.

@user1471538283 that’s ok thinking unless there are lots of people wanting the house who are willing to pay more and have the means to do so. I would say it depends what % of the price it is and if the OP can find the shortfall/accept a different LTV bracket.

I think it also matters what you offered in comparison to the asking price. If you offered 20k over then you take the risk of down valuation and as a vendor I'd expect you to make up the difference. Some will offer over to beat the competition and then reduce their offer later when the valuation comes back at asking price and that's not on IMO.

If they won't negotiate then you either:
Pay the extra 20k yourself
Try another mortgage provider
Walk away

@redpandaalert

£20k on a house worth £1m no, on a house worth £200k yes. It depends on size of your deposit, how long you plan to live there, is it an area with few transactions so hard to value the property. It depends.

700k, we have a 20% deposit.

@Mizydoscape

I think it also matters what you offered in comparison to the asking price. If you offered 20k over then you take the risk of down valuation and as a vendor I'd expect you to make up the difference. Some will offer over to beat the competition and then reduce their offer later when the valuation comes back at asking price and that's not on IMO.

If they won't negotiate then you either:
Pay the extra 20k yourself
Try another mortgage provider
Walk away

We offered asking price. Will go through the answers properly later.

£20k on a £700k house is not much as a %. If I was the vendor I would accept you to suck it up tbh. Depends how much you love the house.

We had the exact same situation. We didn't have 20k more. We were told the valuer would not be moved.
We begged the vendors to reduce their price given the valuation but they refused and put it back on the market claiming they would get much more anyway.
It sold 3m later for 20k less than the valuation. Felt like we'd dodged a bullet there.

@Wysterialane

£20k on a £700k house is not much as a %. If I was the vendor I would accept you to suck it up tbh. Depends how much you love the house.

We're waiting for the home buyers report and then might ask for a 10k reduction.

We don't need the bank to lend us the 20k extra and with the plans as we do have the funds, it's not our first property. It'll be worth a lot more after our plans: Extension, open planned kitchen, new bathrooms, we'll eventually go into the roof so have a 6 bedroom house etc but it's not even so much for the money but more to be a home for the next 20+ years. Who knows that the market / world will be like then.

We are in the process of remortgaging our house - my rough guess was £550,000 based on local prices, mid zoopla guess etc etc

started the process with one company who sent a valuer out in person who said it was worth £517 - so £33000 less than we had hoped. They would still lend us the money we wanted but just wanted to charge us more!

Went to another mortgage company, didn’t even bother sending someone and did a “digital valuation” - agreed with the £550!

can you go with another company?

20k on a 700k house is zilch, pay it and relax.