Property Valued Lower than Fixed Price

[carron81]

Hi

In a bit of a dilema.

My flat is up for sale and I'm having to pull out of my fixed mortgage early. Which I'm getting fined �4000 for. So for me to break even I really need to make �83,500 so I'm not left in debt after the fine and all the fees etc.

However, when getting my property valued for selling, all agents I had round estimated I'd be looking at the mid 80's. I would be happy just to break even

So it was a bit of a shock the other day when a interested buyer got a survey done on the flat and it was valued at �79,000. Which is worrying as Im now going to be left in debt.

But, my estate agents asked if i wanted to put it in at a fixed price of �83,000 which I've now been thinking over the weekend. How can this be possible if its been valued at �79,000 ?????

Can anyone help me out on this.

Much appreciated

[Postdog]

Valuations vary from agent to agent don't they?

[carron81]

hi

i think they do. but in our area it seems to be the same agency that covers the whole area :(

[Eve]

You can ask what you want for ir, provided someone is willing to pay that amount for it.

The only issue I could see if if a potential buyer can't get the mortgage offer they want due to a lower valuation.

No harm in trying to get what you need for it though.

[carron81]

already tried that. they wont budge above �79000. I would maybe even try �80,000 but the offices were closed over the weekend so will need to wait till tomorrow.

I know the lady loves the flat and was willing to pay a fixed price of �86000 for one exactly the same as my flat across the road (mines is a lot better, bigger etc)

But now because of the survey she says 79 is the highest she will go. I always said when i was looking for a flat I'd rather loose out on it for thousands and would be gutted if it was just a couple of thousand so not sure if the lady is just hoping we come down

[carron81]

hey in a pickle

thanks for your comments

we do have a bit of time but i'm just worried the way the market is if we hold off then we could end up paying for a mortgage for another few months then if someone else does like the flat, gets a survey done and we're in the same situation again and a few months payments of mortgage down.

also, we're not living in the flat and i'm pregnant so we would like to get rid of it, but would like it to be at a better price. i think we're gonna end up in some debt but if we acceph her offer it'll be far more debt than we thought

decisions decisions

its just annoying because i know our flat is worth the mid 80's and out of all the ones on our street we're the only one with a drive, best decor, move in condition etc etc and the other ones are at offers over the same as ours

[Eve]

I'm a property lawyer in England (are you in Scotland, think I saw something suggesting that on another thread) and the market is incredibly slow at the moment and people know they can push for a bargain.

Ask to see a copy of the valuation to see what has downvalued the property from your expectations and ask the agents for their advice, maybe general property market, maybe something else you're unaware of.

There are also a number of sites on which you can check recent property prices for comparatives (again take into account the state of the market).

http://www.nethouseprices.com/

http://www.houseprices.co.uk/

If it's in an area with a good rental yield (eg near a hospital of college or university) you could try to find any interested investors to widen the market.

If you still can't shift it for the price you want, could you rent it out until your early repayment has gone to give yourself some additional income?

It may also open the market more for investors who want a tenanted property with a good rental yield to add to their housing stock and they may get a more favourable buy to let mortgage than normal buyers if the rental figures are good.

Might be worth having a chat to some local letting agents about possible figures and need for rental properties.

Do you know if you have any options on your mortgage such as payment holidays or if there is any room for manoevre on the early repayment figure, especially if you own other property.

Make sure you get a full illustration if you ask about any of these options though so you know exactly what you might be getting yourself into.

Good luck :)

[redcrx]

carron,
i was in same situation, pregnant, wanting to sell house and was stubborn and didnt sell to a buyer who offered 10k less than my asking price.

i have paid the mortgage on an empty property ever since, the estate agents have since admitted they gave too high a valuation and the price is now what i was offered before.

only thing is its now 3 years down the line and its cost me a fortune in that time!

just keep in mind what it will cost you each month that its empty and on market.

[crapmemory]

Have you thought about auctioning your property. The agents will tell interested buyers what your minimum price is and will then accept sealed bids.