House Valuation

[breadstick]

Hi

My son found the exact house he wanted and had an offer accepted but the valuation has come back 7,000 pounds less than what the offer was accepted at

he is very upset as the house was exactly what he wanted but the estate agent acting for the seller is adamant it is worth more


does he have any options? :(

[ummmm]

The banks valuation?

[rockyracoon]

Buy it or don't are his options really. If he really wants it and sees himself there for a few years then he should go for it. Your only sticking block might be the mortgage company, if his deposit is a small percentage of the value they might be inclined to insist on a bigger one.

[Prudie]

i'm confused - are you saying the mortgage valuation has come back less and that's the maximum they're willing to lend? I lost a dreamhouse that way years ago.

[breadstick]

The banks valuation yes

i dont know where the estate agent plucked his figure from as other houses in the area are not worth what this one was on at

i tried telling him he was overpaying for it but he wanted it and now i feel really sorry for him :(

[rockyracoon]

What has the bank said? Have they withdrawn the mortgage offer?

[Zacs-Master]

I'm surmising that your son was over enthusiastic and the agent thought 'I can get a few more quid here'.

[ummmm]

It happened to me as well.

The house I bought and the house next door were being completely renovated. My house was almost finished and the they'd only just started on next door. They clearly valued the house next door and wouldn't back down when I pointed it out.

I had to go to a different bank in the end.

[breadstick]

Yes Zac i think he probably was what i dont understand is how can the 2 valuations be so different

[Prudie]

In the scheme of things £7K isn't that different when valuating something in the 100,000s. In my case it was overvalued by the agents because it was pretty and chocolate boxy. That wasn't important to the motgage lenders.
Presumably all buyers are going to meet with the same problem so has he gone back with a lower offer?

[meglet]

He needs to try a different bank. If the second valuation still comes back significantly lower than the asking price then either

A) he will have to fund the difference himself or

B) the seller will drop the price as they will realise they can't get what they want for it unless they find a cash buyer

[ubasses]

He can challenge a valuation but reading your comments regarding other houses in the area I do not think it will succeed. If he has a large deposit and the LTV is quite low the valuation could have been done by a Manager of the Mortgage Company but if higher it will have been done by a professional Company. If it was done by a Manager he could pay for a professional valuation, but great care would have been taken by the Manager. They would have gone and looked at the outside of the house, looked through property pages of local pages and checked valuation sites and sold prices on the internet. A professional Company would have arranged access to the inside.

Fingers crossed, if the buyer is asking well beyond it's worth your son may find the price dropping in the near future.

[Old_Geezer]

Maybe the seller is in no hurry to sell and is seeing if it is worth the price they are trying by anyone.

This sort of thing is precisely the thing I dislike, needing to have an instinct on what might be accepted and what not. It's all a gamble whatever you choose.

Maybe they've done something up which they think is worth £7k to get back ?

Fund it himself, back out of the deal, or put in a lower offer pleading an inability to get that size mortgage. That seems to be the three options.

And I'd concur the £7k is a small percentage of the total price, so it may just be a case of pride in avoiding being persuaded to pay over the odds, rather than any real reason not to go ahead. Good luck whatever is chosen.

[Peter Pedant]

it happened to me as well as a lot of us
and you pay £7k more if you want it
which it sounds as tho he does

( I bought )

the agent said to me actually O that doesnt matter you have £10 000 in your alliance savings account
( and I thought you are NOT meant to know that .... )