To those of you selling - asking price similar to property value?

[erhsla14]

Generally, do people put their houses up for an asking price similar to that of what the property is currently worth?

We (FTB) have had an offer accepted on a property that we've offered 10% over. For mortgage purposes, I'm wondering if it will be valued what it was put up for... and what my options are if not (I wouldn't want to pay 10% over asking if that was already a fair bit over value)

Well theoretically properties should be marketed around what the value of the property is but a property will also sell for what someone is prepared to pay - thats why people are having to pay over and above at the moment because the market is a bit mad. If you have offered substantially more than your mortgage co value the property for there is a risk they wont give you as much mortgage so you would either have to add in some extra cash or negotiate down on the price you are prepared to pay. There is a risk then that the vendor may decide to re-market the property and go with someone else who us willing to pay more.

this is why buying property can be so stressful.

lots of factors but one is agents.

Near me there is an agent which prices low or have a range as a guide price. their intention is to start bidding wars. They list on rightmove with the lowest price to get people in, but their houses sell for a bit more than the higher price in their guide.

there is another agent which prices high but when the sales figures finally hit public records they sold for less. there is only the odd exception with this agent of over asking.

things seem to be cooling off in my area since more stock has been coming onto the market. Houses are staying on for a while.

we are just watching the market and will bid what we think is the right price.

though we would ‘overpay’ on a particularly desirable house. We are in our 40s so it’s not out of the question for us for the dream property. It would have to be one that would work for minimum 20 years. It’s not worth doing it for a house we’d move out of in 4 years.

What happens if the mortgage valuation is under the offer price? Is there any room to challenge the valuation?

Not challenge the valuation- the lender just won't budge. If there's a down valuation, it's up to the buyer to make up the difference. There have been instances where people in the chain have split the difference in order to proceed and get to exchange/completion.