Survey valued house lower, what next?

[Dragonfruity]

We've just had the mortgage survey done on a house, and it's been valued at £590k - £20k less than what we offered for it. For context, the property had 5 offers and went to best and final - we pretty desperately needed to find somewhere, and it was the nicest house we've seen so far, so we just went for it.

So what typically happens now?

Can you still afford to buy it at the price you offered? If not you will have to let them know and offer what you can afford. They might then decide to go with another buyer.

How much do you need to borrow? If you have a good deposit it won't matter as much as if you need to borrow 100%.

Nothing happens. You just go ahead with the purchase. You could if you want try to negotiate the price down by going half woth the vendor but at 590k, 10k isn't really a deal breaker and it will just make you seem like you're going to be hard work to deal with for the process and more than likely push thr vendor to accept a different offer.

You need to find the extra £20k to cover the shortfall. Surveyors word is generally final. You can appeal but it would probably be a waste of time, as you've as good as as said in your first post that you overpaid.

Unless the seller is willing to drop, but l wouldn't if it went to best and final.

Or ask the mortgage advisor to try and different lender.

Surveyors often down value due fear of being sued if they overvalue. It might affect how much you are offered on a mortgage depending on how much you are asking for related to the valuation.

It depends what you want to do.
I would be wary of over paying at the moment but, equally, it's not a massive percentage. The seller may be unwilling to budge given the level of interest or they may meet half way and you need to find the extra 10k. If you were the only offer, I would say to negotiate because you would have a better chance of success.

Normally I would suggest trying to meet in the middle at 600k & you still could try to do that - suggest it to the EA & see the vendor response.

However, in reality it seems unlikely they will accept a 10k reduction when they had 5 offers, assuming all 5 were proceedable. You may have to use some of your deposit on bridging the gap and thus be left with less of a deposit.