House I want to buy has been down valued and seller won’t budge on the price

[HollieTalbut1997]

Thanks for any advice anyone can give, just looking for a sounding board as I’m driving myself mad!

I offered on a house a few weeks ago, it went to best and final and I missed out. Was gutted.
I got a call on Wednesday to say the sale has fallen through and to ask if I was still interested, which I very much am. The estate agent explained that the house had been down valued and so the initial buyer could not get a mortgage for the amount needed and didn’t have the cash to top it up. House was on the market initially for £175,000 and had been valued at £160,000 but estate agent suggested a figure around £170,000 would be enough to confirm a deal. I went away and crunched some numbers and decided to make a new offer of £167,500. This was declined so I upped my offer yesterday afternoon to £170,000 and said this was the maximum I could offer based on the likelihood of having to put more cash down. I do have the cash to offer £175,000 but would leave me with no savings which I’m not prepared to do.
Estate agents came back this afternoon and said the seller had declined £170,000 and wouldn’t accept less than the initial asking price.
Apparently higher offers have now been received (which I find fairly hard to believe based on valuation info and the amount of time).
If someone else did want to make an offer, would the estate agents have to declare the info about the valuation?

Thanks!

If you love the house, and plan to be there for a long time, would you feel worse about over spending for it or for losing it?

www.mumsnet.com/talk/property/5105180-if-you-overpaid-for-your-property-do-you-regret-it?reply=136299385

Who 'downvalued' the house?

I think the EA is trying it on, I'd stick to my guns.

It sounds like the mortgage company says it wasn't worth what it's on the market for.

To be honest, I'd back away.

Whilst you are in the position of being able to make up the difference with cash; wouldn't you then just be paying more than it's worth?

Also, if the EA doesn't tell future buyers, they may well find out anyway, when the same or different mortgage lender says it's worth £160k too, other buyers won't be prepared to/be able to top up with cash and the house will be back on the market (or sell for a lower price).

So the house was down valued to 160k and you're supposed to pay the shortfall to assist the seller's mortgage capacity?

Is that what you're saying?

If that's right then offer 160k - that's what it's new value is...apparently.

I agree with the above poster, the EA is trying it on.

Isn’t a house just worth what someone’s prepared to pay for it? I mean I get there’s a market value to benchmark against. But if multiple people are prepared to pay £170k, sounds like that’s what it’s worth (and would go for again). (I get obviously that the mortgage and raising the cash was the issue for the other buyers.)

What other houses are available in your area for £170k? I’d go back and say you have done a bit of research and think the mortgage provider is spot on, it’s not worth more than £160k in the current state in the current market. But you like it so are prepared to over pay by £10k. You can’t go any higher, because you aren’t confident of being able to borrow more. Obviously if they can find a cash buyer who isn’t interested in getting a good deal for their investment and are naive about the local market, you’d understand. Your offer remains on the table.

go look at other properties.

The mortgage company. I want 90% of asking price but the bank thinks I’m overpaying then they will only offer me 90% of what they think it’s worth, thus protecting their loan.

Personally I wouldn’t buy it but equally if you think you’ll live there for many years and you love it then you’d probably be better off not doing what I’d do, and buying it anyway.

Are there other comparable properties available?

I don't think it's necessarily the EA trying it on. When we sold our previous house, we received loads of offers but the buyer we proceeded with had the same issue; mortgage company devalued by £10,000.

We held firm on the price because we'd had several asking price offers and because at the time, my brother and my mum were also selling their homes which were also both down valued by £10,000 by the buyers' mortgage companies. Both in completely different parts of the country to each other and to us. It felt like a mortgage company tactic at the time and we didn't believe it actually reflected the value of our house.

Our buyer managed to find the extra £10,000 but if they hadn't we would have asked the EA to go back to the other people who'd offered and we were confident that one of them would have paid it.

Plus if the survey brings up faults, it’s unlikely the vendor will negotiate even then.

Don't spend to the hilt of your savings on this, you'll need some spare. I wouldn't be drawn any further to be honest, I think the EA has got a whiff of how keen you are and are using that.

It was down valued by the lenders of the initial highest bidder

If it has already been down valued from 175 to 160k, there is a fair chance that another lender will also down value it. Are you happy to over pay? How does it compared to local properties of the same size that have recently sold within your area? Do you think it is over valued based on your own research?

I would just email the estate agent back and suggest that they accept one of the other higher offers that have allegedly been received because 170k is the absolutely maximum that you will pay. Sometimes you just have to walk away. With the current economic situation, you would probably really regret over paying at the moment.

I agree with most of the previous posters. You’ve already offered more than it’s value, they should bite your hand off.

I would tell them £170k was my final offer, on the table for 48 hours, then walk away. There is never just one house, and if that is the most you want to pay then that is where you draw the line.

Thanks - that is basically what I’ve said. Just overthinking everything now!

What happened in the end? Did you get the house @HollieTalbut1997 ?

Hope all worked out for you in the end

This happened to us some years ago. The EA put us under tremendous pressure to “find” the extra money that the vendor demanded. I actually called our solicitor for advice as we were first time buyers and quite naive. Solicitor advised us to walk away from the sale. He said that if in the future we had to sell for unforeseen reasons, we might have to sell at a loss and end up in negative equity. As he said at the time, a property is only worth what someone is willing to pay for it and not what the vendor demands.
We withdrew and, honestly, it was the best thing we did. Found something else we loved pretty quickly and the nagging stress of the other house disappeared.

Oh doh 😩 just realised I’ve replied to an old thread 🙈

I don't think the EA have to mention the mortgage problem that a previous potential buyer had, but it's possible that future purchasers will meet the same fate. Hopefully your reasonable offer of 170 will be accepted. These higher offers which have suddenly arrived sound imaginary.

I’ve read that certain mortgage providers are down valuing a lot of properties at the moment.
If you want the house and you can afford it go for it.
Then if you need a mortgage see what your mortgage company value it at.( Of course they may use the same surveyor. )

If the buyer won’t move on price maybe they’ve got time to wait for the price they want.

Me too 🤣🤣🤣🤣

Let’s make a guess at what happened

I think OP didn’t buy it