House down valued by bank

[Pocketchickadee]

We are currently privately renting and our landlord decided to sell but offered to us first before putting on the wider market. The property was valued at 580k by 3 EA but we want to keep repayments affordable so offered LL 490k which he accepted with consideration to the fact that it would probably be a quicker / easier sale as no chain and we already live here.

Fast forward 2 weeks, we have had AIP from the bank, started the mortgage application and started conveyancing. The bank has now come back and said their surveyor has down valued the property to 450k. This is 60k less than the LL paid for the property in 2021.

Now what do we do? Appeal the valuation? Try another lender?

Yeah, my source is common sense

Good reliable source then?

@PerfectYear321

Did you qualify as an analyst at the University of Life or the School of Hard Knocks?

I love that half the people are saying ‘Ignore the valuation! Try and pay more!’

Yep

Delusional

Honestly the trajectory of the price just fits in with a lot of things I am seeing.

Asking prices can be mainly bollox, everyone generally accepts that some agencies (cough Foxtons) pitch it unrealistically high so that a gullible seller thinks it'll actually go for that. It doesn't and they start pushing for reductions but they also get their expensive fee.

So here what I think has happened is that property was priced by the EA at peak 2021/2022 prices + x% which obviously looks stupid.

That's why the landlord offered the place at such a long way below the initial asking price and is still happy to lose 20k over 2 years (never mind the legal fees and stamp duty), wanting to give the impression of giving you a 'bargain' but the price still being in fact above what currently is.

If the prices of property sold is SSTC then who knows what the price is? It could be anything. 510-650k is such a wide band that I doubt everything in it is going to be the same.

If the prices of those properties are based on actual LR prices then consider those deals would have been agreed most likely at least 6 months ago, and the mortgage markets have changed substantially since then.

This seems strange, around us prices have dropped a tiny bit, but nowhere near that amount. I think they are basing it on your agreed amount maybe rather than the house itself. I would try another lender, however at the end of the day it depends on what you can afford to pay for it and what you think it is worth to you.

We had this and whilst it was a pain we didn’t think it meant the house was necessarily overvalued as it was a ‘drive by’ valuation so took no account of the interior fixtures etc (and we’d seen one round the corner that needed more than £100k of work as it was c1980 inside…which was the most recent local property sold).

@PerfectYear321

Not delusional, I just understand the difference between a fact and an opinion and believe that they should be presented as such.

It may well be delusional to believe that your common sense 'facts' mean anything to anyone else but you.

The bank valued our house less than we paid. Turned out he had just used next door as a template but our house is another 50% larger. He was lazy. Check check and check again

This happened to me and the seller wouldn't budge on price. We had to find extra money for the deposit as the bank would only lend 90% of the valuation not the cost so we needed extra on top of the deposit to buy the house.

Ridiculous attitude.

You can search for 'sources' yourself but the truth is nobody knows and it is all opinion. Even the so-called experts don't know what's going to happen but they're in agreement at least that prices are going down.

I don't think anyone is saying that.

The estate agents probably have overestimated value but that doesn't mean the one lender whose looked at it is 'right' either. Their valuation could be based on incomplete or incorrect information.

If op wants the house, it's absolutely worth asking another lender for a valuation to see where the land lies.

The salty ones obviously bought post-pandemic, because that over- reaction was ridiculous

@PerfectYear321

So if nobody knows and it's all opinion why are you making proclamations about what will 'definitely' happen?

There's no ones judgement I trust less than someone who doesn't think for a second that they could be wrong.

Wow, somebody expressing an opinion on a property discussion forum. The horror!

Chill out, mate. Hopefully it won't happen.

This. I know it's annoying as you have probably gone with the lender offering the best rate but you need to look for another lender and see what their valuation is.

thing is we only see the asking price, sold prices can take quite a while to appear online!

I think its down to the fact lenders are getting nervous about possible fall in house prices, negative equity and folk unable to meet their mortgage payments. Try anither lender.

Charmed, I'm sure.

You need to pay for an independent valuation to decide how to proceed. It seems neither the agent or bank are reliable enough with their valuation in this case. It's not expensive in the scheme of things and if it also comes in low you have a very strong lever to use to renegotiate. If it comes in high happy days and get it bought.

What's the point of an independent valuation really though?

OP needs a valuation from a different Lender prepared to give them a mortgage.