Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Flip

1 2 3

Original poster

Down valuation

59 replies

ZoomBroom · 08/06/2023 11:02

We are selling a property to first time (cash) buyers, no chain on our part. Everything proceeding and we are a couple of weeks from exchange. Initially they weren’t going to bother with a survey but changed their minds on advice from their solicitor. Survey found no major issues but down valued the house by £40k. Now we are pretty late in the day with the sale and they want to renegotiate on price. I think it’s too late for that. It’s a great house but the market here is dead. WWYD?

OP posts:

DogInATent · 09/06/2023 08:12

ZoomBroom · 08/06/2023 21:03

I only thought it was shifty because it was so late in the process

It's built-in to the English system of conveyancing. Nothing is binding on anyone until Exchange.

What's your EA advising? - allegedly these people understand/know the market.

Persipan · 09/06/2023 09:10

I appreciate that valuations are not an exact science but say it is in fact worth 710k, why on earth should they pay you 40k more than that? Sure, they have the money, but at some point in the future when they come to sell, unless they can also find someone happy to pay over the odds, they're losing out. It may be worth seeing if they'll meet in the middle, or seeking further valuations to provide more information to all involved, but just expecting them to give you a five figure sum over what the property is worth because they'd previously agreed to (without knowing it was more than the property was worth) doesn't seem like a terribly strong argument.

Thesharkradar · 09/06/2023 13:47

No one knows what the house is worth, the seller wants to get as much money as they can for it, the buyer wants to pay as little money as they can for it, you have to negotiate in order to find a price that both will sides will accept... or not as the case may be.
And that's before we factor in the middlemen, the estate agents!

Motnight · 09/06/2023 13:48

ZoomBroom · 08/06/2023 11:15

We originally listed for 775, agreed 750, valuation has come in at 710

Not if they have only just had the valuation.

MamaSharkington · 14/06/2023 22:30

Thesharkradar · 08/06/2023 21:46

I would be keeping a close eye on that place to see what it eventually sells for @MamaSharkington
lots of people seem to think the interests rate will revert to the very low rates which they have come to think of as normal, historically the norm is more like 5%

Interestingly they came back to us today, but still at 60k over highest valuation. Suggests there has been very little interest over the weekend. I'm not sure what we are going to do yet, but I think we'll let it pass us by.

Twiglets1 · 15/06/2023 07:56

ZoomBroom · 08/06/2023 11:15

We originally listed for 775, agreed 750, valuation has come in at 710

That's annoying for you @ZoomBroom but not unreasonable from them, given the low valuation. Tbh I would suck it up and agree a renegotiation rather than potentially lose the sale altogether.

You are 40k apart in what they want to pay and you want to sell at. I would suggest to the estate agent that you meet in the middle at 730k. That is still a good sale for you on a property with asking price of 775k.

I would say I will reluctantly agree to 730k on condition that we Exchange by the end of the month.

Thesharkradar · 15/06/2023 11:33

MamaSharkington · 14/06/2023 22:30

Show quote history

They are struggling to accept that their property is no longer worth what they want it to be worth but they clearly need to sell or they wouldn't have come back to you.
They need you more than you need them so you're in a strong position if you play it clever.

Thesharkradar · 15/06/2023 11:34

Twiglets1 · 15/06/2023 07:56

That's annoying for you @ZoomBroom but not unreasonable from them, given the low valuation. Tbh I would suck it up and agree a renegotiation rather than potentially lose the sale altogether.

I would say I will reluctantly agree to 730k on condition that we Exchange by the end of the month.

Show quote history

I disagree, they deserve a game of hardball.

pinkthree · 15/06/2023 11:38

Did you have any other interest when you listed the property?

If you didn't have any other offers I think you should consider a lower offer from them as you might end up stuck with no other offers and have to reduce further.

I wouldn't necessarily knock off £40k. But you could offer them maybe £10k off and see if they will take it.

You should also speak to your estate agent and ask them to send examples of similar properties in the area which made them value it at £775k as then the surveyor may reconsider their valuation.

Flip

1 2 3