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Original poster

House valuation

65 replies

Iammetoday · 30/08/2023 22:10

Estate agents valued house we want. 2 different quotes. 1 £400,000 other 425,000. We've agreed a price with owner of £380000. Had valuation from mortgage company at £375000. Do we try to negotiate more? What would you do?

OP posts:
caringcarer · 30/08/2023 22:46

If you go back to the vendor and say the building society will only lend on their valuation of £375 the chances are they will drop the asking price to match the building society valuation. That's what happened to my DS. He was a first time buyer and didn't have extra money of his own to plug the gap.

Original poster
Iammetoday · 30/08/2023 22:52

@caringcarer thanks,wasn't sure if a bit cheeky but don't want to pay over the value

OP posts:
caringcarer · 30/08/2023 23:16

I think that's what most people do. Plus the market is falling so you don't want to be paying more than it's worth. Remember you likely won't complete for 3-4 months. By then it might have gone down a bit more.

Original poster
Iammetoday · 31/08/2023 09:20

@caringcarer thanks for the advice

OP posts:
CrashyTime · 31/08/2023 13:22

caringcarer · 30/08/2023 23:16

I think that's what most people do. Plus the market is falling so you don't want to be paying more than it's worth. Remember you likely won't complete for 3-4 months. By then it might have gone down a bit more.

Yes, with a falling market you should try to cover yourself a bit, offer them 350k if you think it is worth that.

Twiglets1 · 31/08/2023 14:12

Iammetoday · 30/08/2023 22:52

@caringcarer thanks,wasn't sure if a bit cheeky but don't want to pay over the value

It's definitely worth a try and isn't cheeky to ask.

Twiglets1 · 31/08/2023 14:14

CrashyTime · 31/08/2023 13:22

Yes, with a falling market you should try to cover yourself a bit, offer them 350k if you think it is worth that.

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Calm down Crashy - I know you want to push your message of a house price crash on every thread but the OP doesn't want to lose the property they are trying to buy, only to get it at the price it has been valued at by the mortgage company.

Diyextension · 31/08/2023 14:18

If someone did that to me ( 350 ) I’d tell them to take a hike and put it back on the market. As they would probably end up being troublesome buyers.

Twiglets1 · 31/08/2023 14:21

Diyextension · 31/08/2023 14:18

If someone did that to me ( 350 ) I’d tell them to take a hike and put it back on the market. As they would probably end up being troublesome buyers.

Yes it wouldn't work and would just sour the relationship so not helpful advice to @Iammetoday

CrashyTime · 31/08/2023 14:26

Twiglets1 · 31/08/2023 14:14

Calm down Crashy - I know you want to push your message of a house price crash on every thread but the OP doesn't want to lose the property they are trying to buy, only to get it at the price it has been valued at by the mortgage company.

Show quote history

Ok, that`s a fair point.

Crossstich · 31/08/2023 14:27

I certainly wouldn't reduce the offer to 350,000 that's seems much to low. The mortgage valuation is only 5k lower than your offer. If you can afford it and have a big enough deposit I would just stay with your original offer.
If you plan to stay in the house some time it won't make much difference. Prices are going down in some places now but the trajectory over a long period of time is always upwards.

CrashyTime · 31/08/2023 14:33

Crossstich · 31/08/2023 14:27

I certainly wouldn't reduce the offer to 350,000 that's seems much to low. The mortgage valuation is only 5k lower than your offer. If you can afford it and have a big enough deposit I would just stay with your original offer.
If you plan to stay in the house some time it won't make much difference. Prices are going down in some places now but the trajectory over a long period of time is always upwards.

How do we know it is too low without seeing a link to the house?

Sussurations · 31/08/2023 14:38

I would simply go back to the seller with the new info and offer £375k. Be completely transparent with them.

If the house is worth £380k to you and you are happy to pay it, then if the seller utterly refuses to budge you can always do so, but don’t do it without trying to get the price down to the valuation or as close as you possibly can.

Original poster
Iammetoday · 31/08/2023 16:15

Thanks all,similar houses on right move are around the 395/400 so estate agent valuation was oribably about right, just the mortgage company valuation seems low. We don't want to lose house and house prices aren't dropping yet here (SE) so ill go back and tell him and offer to split difference, this is the house we will stay in long term so not messing about for £5000. Thanks all

OP posts:
BlueMongoose · 02/09/2023 20:20

CrashyTime · 31/08/2023 14:33

How do we know it is too low without seeing a link to the house?

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How do you know it isn't being a CF if you haven't seen it?

CrashyTime · 03/09/2023 20:44

BlueMongoose · 02/09/2023 20:20

How do you know it isn't being a CF if you haven't seen it?

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Speculation based on interest rates and the level of drops you see now with PropertyLog, one more rate hike and it will be a 350 or 325k house at next valuation IMO.

pilates · 03/09/2023 20:51

Yes perfectly reasonable to offer £375,000 as per your mortgage valuation.

CrashyTime · 03/09/2023 21:17

I don`t think anyone should be making offers just now TBH, wait for the interest rate rises to stop, then let the effect on prices filter through, IMO that is going to take some time.

pilates · 03/09/2023 21:26

Interest rates could take another year before they stabilise (if they do - who knows?) The op wants to buy now.

CrashyTime · 03/09/2023 21:28

pilates · 03/09/2023 21:26

Interest rates could take another year before they stabilise (if they do - who knows?) The op wants to buy now.

They also said they don`t want to overpay, buying now would be overpaying IMO.

pilates · 03/09/2023 21:33

It’s got to be better than renting.

Twiglets1 · 03/09/2023 21:50

pilates · 03/09/2023 21:33

It’s got to be better than renting.

Yes @CrashyTime never suggests a good alternative to buying only ever says don't buy now it's crash time.

itsallnewnow · 03/09/2023 21:58

" Speculation based on interest rates and the level of drops you see now with PropertyLog, one more rate hike and it will be a 350 or 325k house at next valuation IMO." @CrashyTime

I'm really interest, what area (roughly) are you in? I can't see anything like a 25%+ drop in prices where we are (North East) seen a small drop so far this year around 5% and I expect that will continue to spring.

I know some places are stable from what I've seen on here but I don't think there's anyone credible suggesting massive crashes.

We're in the middle looking to upsize next year tbh so not sure how it would effect us.

oiltrader · 04/09/2023 08:22

Higher mortgage rates make renting cheaper than mortgage costs We’ve compared the average rent to the average monthly mortgage repayment for a first-time buyer. Our analysis presumes they’re buying the property they rent with a 15% deposit on a 30-year term with a mortgage rate of 5.6%.
If you’re a first-time buyer, your monthly rent will be £122 cheaper than the mortgage repayment on the same property.
Higher mortgage rates have increased a typical first-time buyers’ mortgage repayments by a third in the last 12 months.
Meanwhile, rents have risen by a lesser 10.4% over the same period, pushing buying to become more expensive than renting.

https://www.zoopla.co.uk/discover/property-news/is-renting-cheaper-than-buying-a-home/

x

BadCider · 04/09/2023 08:27

CrashyTime · 31/08/2023 13:22

Yes, with a falling market you should try to cover yourself a bit, offer them 350k if you think it is worth that.

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Awful advice.