Don't really know where to start here.

In January, we've decided to move out of north london to Berkshire, basically for better school and environment for our soon to be teenagers.

We've sold the flat once in the spring, privately, to a developer who did up a few flats on our street and we know as they used to be neighbors. It ended up being a nightmare after he dropped the price 3 times to a level we could no longer cope with. We lost 3 months in the process and Survey/Conveyancing money on a house we wanted to buy at that time.

Then we were in April, did a pit of refreshing pain jobs in the flat, a gorgeous one I have to say, 2 beds, Edwardian terrace with a garden and scope for loft conversion. Went with Estate Agents, who went for a realistic asking price 325K, I have to say they have been doing a great job marketing it and bringing in lots of viewers (25+)

Had lots of interest few low offers and then the one we did accept (they have sold to FTB). All was good so we found a house(chain free) and put in an offer. We're as far in the stage that we could be talking of exchanging in about 2 weeks time. Our buyers survey as come 8k below the price agreed ( which we already knocked 15k off) and now want to renegotiate. It is a period property and does require a little bit of TLC but not extensive. the average sold price on our street from the past year is 333k and we've agreed 310. Should we tell them to contest the valuation ?

I'd love to hear other people's opinion as We are feeling the strain now and not sure if we should lower our price and borrow more or just stick to our guns....

Help!!

Thanks
CanuckGirl

ooops ...sorry for the typos...

a bit of refreshing paint job...

quote:

Originally posted by CanuckGirl:
Don't really know where to start here.

In January, we've decided to move out of north london to Berkshire, basically for better school and environment for our soon to be teenagers.

We've sold the flat once in the spring, privately, to a developer who did up a few flats on our street and we know as they used to be neighbors. It ended up being a nightmare after he dropped the price 3 times to a level we could no longer cope with. We lost 3 months in the process and Survey/Conveyancing money on a house we wanted to buy at that time.

Then we were in April, did a pit of refreshing pain jobs in the flat, a gorgeous one I have to say, 2 beds, Edwardian terrace with a garden and scope for loft conversion. Went with Estate Agents, who went for a realistic asking price 325K, I have to say they have been doing a great job marketing it and bringing in lots of viewers (25+)

Had lots of interest few low offers and then the one we did accept (they have sold to FTB). All was good so we found a house(chain free) and put in an offer. We're as far in the stage that we could be talking of exchanging in about 2 weeks time. Our buyers survey as come 8k below the price agreed ( which we already knocked 15k off) and now want to renegotiate. It is a period property and does require a little bit of TLC but not extensive. the average sold price on our street from the past year is 333k and we've agreed 310. Should we tell them to contest the valuation ?

I'd love to hear other people's opinion as We are feeling the strain now and not sure if we should lower our price and borrow more or just stick to our guns....

Help!!

Thanks
CanuckGirl

Sounds like the buyers are prepared to pay the price as they think it's worth it for the property but seemingly the valuer for the mortagage company has his/her own opinion...what about spliting the difference i.e. £4k and seeing if they can raise £4k themselves? What does 'contesting the valuation' involve exactly? Have the prices on your street dropped may be in the time from when the sale was agreed to when it was valued?

I would say not to look a gifthorse in the mouth with the market the way it is. FTBs with secured lending? bite their hands off. This could be your last chance to sell before the market really goes pete tong.

I don't think it's a surprise is a falling market (even in an area that may be more sought after) that a mortgage valuation came in under an offer price.

The only way you were likely to avoid that was if you had a cash buyer.

I think that in the current market, 8k on 310 is neither here nor there - I would not lose the sale over it. However, you should go back with a counter offer.

1 bed and 2 bed flats are just not selling at all well at present and whatever the value was last year does not mean that you will get anywhere near that valuation in today's depressed market.
If you get any reasonable offer near your asking price then take it if it means you can move on.
Sure, try a bit of horse-trading to obtain the best possible price for yourself but be aware trying to find a buyer in today's market will be quite difficult.
Mel.

I agree that £8K is not worth worrying about on a property of this price, certainly not worth holding up a sale over. You could try asking the buyers to split the difference, but if not then just go ahead at the reduced price.

There have been a few articles in the papers about this recently. Lenders are valuing properties 'conservatively' ie. less than they are probably worth with the view that the market is in a slump and the value will probably be less this time next year. It's a kind of built-in protection from negative equity which protects the lender.

Funny how things have switched so quickly from lenders giving money away to not wanting to lend anybody anything.

I think in your position I would try to keep my current buyer. Maybe try to split the difference as Velvet said? It depends how much you like the house you want and how much you need/want to move.

It does sound like a genuine under-valuation as opposed to them trying it on at the last minute.

I would like to thank everyone for their input.

WE've had confirmation that their FTB buyers Survey was conducted on June 3rd and their loan agreed.

We've organized an informal meeting this evening to discuss their survey and issues about valuation. We will let her brother in law have a look as she wants to know his opinion on this. She said to us she really wants this flat as a home for her family, so I'm praying we can sort it out.

I think we will see what they say and in view of their reaction, we will propose to go halves on the 8k difference for the sake of everyone involved in the chain.

Will keep you posted.

Thanks again....

Trying to keep my chin up and smile

or we might just bite the bullet, if need be, and borrow extra on our next mortgage, which is not too hiug as we had a 40% deposit.

What do you think ?

I'm used to it being so much straightforward in Canada...hence my panic...

Cheers everyone....makes me feel not so lonely in this so unfriendly property market.

CGxx

sorry about typo again

mortgage not too huge ....

I think you have a very realistic attitude - if they won't split the difference then borrowing a bit more yourself sounds feasible. It sounds like the buyer is a sensible person and I am sure you will be able to sort something out between you - do let us know the outcome.

quote:

Maybe try to split the difference as Velvet said?

Who said ?

Both of us.

lol

The SAGA continues....

Wanted to update you all on how the meeting went. I would say okayish...

Basically their lenders won't let them buy the property at £310K but only at £302K so we are now more clear about their position.

Buyers been quite honest and showed us the homebuyers report and were accompanied by the man's brother in law who is a Chartered Surveyor, I wasn't too keen for his presence as this was supposed to be informal and his inspection not legally instructed...but something's got to give and I really wanted to give this sale a chance to continue proceeding.

They are to get quotes, they will contact the builder who did works for people we know a few doors down with same flat(they viewed their place to have an idea of how it looks post loft-conversion and with a new fitted kitchen )for repairs suggested by their survey.

That famous survey , in my views has flaws: i.e.they're saying it needs a new boiler where we have a 10 months old new combi boiler, installed and Corgi approved with a certificate etc, states it's urgent to replaster all the walls and needs a new kitchen, which is about 10 years old but not shabby at all or unsanitary A lot of the works mentioned are not in our opinion urgent. We've all been living there 8 years and no one has suffered from it, also not sure about the rewiring as we've got no problem at all with our present one. The obvious was okay, it has an old roof which should be retiled (most tiles could be re-used as well), repointing etc etc and we are not at all contesting the survey.

The Surveyor-Brother in Law, was courteous, honest and also himself pointed quite a few flaws in the survey itself.

We've ironed out a few worries about the share of freehold and share of maintenance of the property and the other person who owns the share has been happy to pass on her details for them to have a chat with her about things. SO we gave them her details and explained how we've always shared the maintenance without any problems.

We sense that they will come back with a post-survey offer which will be lower We have already been in touch with our mortgage broker to arrange an addition of £8K to the mortgage in prevision of this.

Had a meeting with our Estate Agent this morning and we sayed that we are happy to sell at £302K It's the waiting game now to see if they will go for that. I should hear later today...

Also, now, do we try and get a reduction on our purchase? The lender's survey was bang on agreed price and it took us 2 days of negotiation last time to knock off £6K of the asking price originally?

Think .....I'm soon to get my GP to prescribe me Valiums as I can hardly cope with all this neverending move/nightmare/stress lol!

Let me know your thoughts
Cheers

I also forgot to mention, that during that process we had a private buyer offering 315K and had his survey done as well. We didnt' consider it at the time as we have principles and just wanted to stick with our original buyer, and we were quite ahead in the conveyancing process.

We haven't told them that but I wonder if we should now...just to see if they would move quicker...or maybe go back to the other and ask him if he's still interested ?

Make enquiries with private buyer to see if they are still interested and how quick could they move on it but don't tell your existing buyers....yet....it would get their backs up and a possible pull out.
The acceptance of £302k is OK but when can they exchange contracts??
Mel.

Forgot to add....your combi boiler is 10 Months old? therefore it is still under guarantee is it not?
I would be having a blast at the original surveyor for writing down such rubbish.
Hardly the work of a professional is it?
Mel.

Thanks Melboy...


I will look into it. I'd like to exchange in about 2 weeks max...and they do to. I need to get my girls in their new schools in Sept.


I'd have to go to private buyer to ask if still interested. He seemed quite keen last time we saw him.


What's your opinion on my purchase ?

thanks

our brand bew baby combi boiler is under guarantee. We have the Corgi Certificate and it's not even due for it's next maintenance yet ! (Sept 2008)

ooops new baby boiler..

quote:

Originally posted by CanuckGirl:
Thanks Melboy...


I will look into it. I'd like to exchange in about 2 weeks max...and they do to. I need to get my girls in their new schools in Sept.


I'd have to go to private buyer to ask if still interested. He seemed quite keen last time we saw him.


What's your opinion on my purchase ?

thanks

You can try a reduction on your purchase after explaining to your vendor the circumstances of why you have to submit a lower offer in order to square off the finances but I wouldn't hold out too much hope as such but there would be no harm in trying the approach but make it quite clear you are not 'Gazundering' in the true sense of the word.
Mel.

quote:

Originally posted by CanuckGirl:
our brand bew baby combi boiler is under guarantee. We have the Corgi Certificate and it's not even due for it's next maintenance yet ! (Sept 2008)

Your purchaser's Solicitor should be asking for this document on behalf of his client.
Mel.