Hello all. Just looking for some advice really! My parents are selling their 2 bed house in London, 5 minute bus ride from the City of London. Estate agents came and valued the house and it was put on for 375,000. The estate agent wasn't really marketing the house so my parents changed to a different one. The house was put on the market at 360,000, to reflect the slowing market and because they wanted a quick move. Sure enough, they got a buyer in place after accepting 350,000 and all seemed well untill the survey! Apparently there is nothing wrong with the property but the surveyor placed the value at 310,000 whih is considerably lower than the first and second assesments of the estate agents. A house opposite sold 6 months ago for 350,000 and they didn't even have a garden or off street parking like my parents have to offer. Basically, the buyer wants them to drop to 310,000. I have heard that he may be trying to gazunder my parents but who knows. Has anyone else had experience with this? Also does anyone agree that a 40,000+ difference is absurd? I know the market has slowed but not by that much on a property! Help, advice and words of wisdom appreciated. My parents really don't know what they should do next, plus they were ready to move to another property which they really don't want to lose. I feel sick and upset for them as I know their home was put on the market at a very fair price considering age, condition, parking and location. What would you do?
Was that the mortgage surveyor? he is putting a value on the property that can be realised in the event of default, nothing to do with the market value.Just means the buyer cannot borrow as much against it.
Never argue with a woman. You might win - and then you'll really be in trouble.
Have your parenst by any chance made known their keeness to be out of the house either to the buyer or the surveyor because that could quite easily be the cause of the lower valuation.
On working lunch today when they were talking about property prices the "expert" on there was saying the imminent fall in house prices was exaggerated in his opinion. But then if all these experts could really foretell the future ...... If you go to the BBC website you can watch i rerun of the working lunch website.
I would say if all other things were equal that your folks should wait for a better offer, afterall the housing market usually picks up in the spring. That said if your folks really don't want to loose the other property it kind of ties their hands a bit.
The only thing is that they wouldn't be able to afford the house they were hoping to buy if they accept 40,000 less for the property they are selling! I wasn't about on the two ocassions that the buyer looked about so don't know how my parents came over, but by all accounts the buyer was overly keen himself on moving in.
Originally posted by N E Juan: On working lunch today when they were talking about property prices the "expert" on there was saying the imminent fall in house prices was exaggerated in his opinion. But then if all these experts could really foretell the future ...... If you go to the BBC website you can watch i rerun of the working lunch website.
All these "experts" quoted in the media, are usually Estate Agents, Surveyors, Solicitors, Financial people, who have a vested interest in talking up the market. They want MORE MONEY!!!
Originally posted by spongemum: Has the surveyor justified the drop in the offer, has he/she accounted for the work that needs to be done?
The house is only 20 years old and as such, doesn't need much work done to it. The buyer's survey only pulled up general wear and tear plus they thought the ceiling in one of the room's could do with replastering but that was all! It certainly isn't 40,000 worth of work to be done. I have my own house which my partner and I have undertaken to do a lot of work on in every room (house didn't have a kitchen as such and needs new bathroom etc)and that has only costed less than 10,000 so the 40,000 drop for minor things is questionable. Also have since learned from my parents that the buyer had taken out a bridging loan to purchase their house and that the surveyor was from Essex surveying a house in central London and wasn't clued up pn the area etc.
It's a tricky situation really. The problem being that no buyer would give the price they had originally agreed to when the survey comes back with one £40k less. I know I wouldn't.
I really think the only thing they can do is keep marketing the property and see what happens. A different surveyor may say something totally different but unless this current buyer is really desperate for the house I couldn't see them wanting to have another one for comparison, not when it currently goes very much in their favour.
*It is not necessary to understand things in order to argue about them. -- Pierre De Beaumarchais
Definitely agree with soopermum1. Also, how many valuations did your parents get in the first place? If more than one, were they all approx the same valuation?
There should be no need to lower the price, a mortgage valuation is just that, and has no bearing on the property value. You all seem to be confusing the two.
Never argue with a woman. You might win - and then you'll really be in trouble.
Originally posted by BIGHEAD: There should be no need to lower the price, a mortgage valuation is just that, and has no bearing on the property value. You all seem to be confusing the two.
I'm not sure I'd agree with that one bighead - the mortgage valuation reflects the amount the mortgage company is willing to lend on the house so in that sense it does represent its 'value'.
I'm replying as someone who this has happened to - the flat I bought last year was downvalued by £30k by the mortgage surveyor. For me as a buyer this was very worrying - I couldn't agree to spend a certain amount on a property if evidence suggested it was actually worth £30k less! What I did in the end was pay for another surveyor to value the flat, he also downvalued it but only by £10k and that is what I ended up paying.
I wouldn't assume the buyer is trying to pull a fast one, although they might be. Why not suggest they get another survey done to put their minds at rest?
The mortgage valuation is what the mortgage lender expects to realise if the house has to be repossessed tomorrow , so quite common in a stagnant market to be less than the house valuation.
Never argue with a woman. You might win - and then you'll really be in trouble.
All of the above is hearsay unless the original poster can confirm whether his parents have seen sight of the survey. Step 2 if the house opposite sold for £350,000 6 months ago this and other examples can be used by the EA as evidence to appeal the valuation. step 3 re market the house forwith it shows you dismiss the valuation if the agent won't co operate threaten to withdraw it from them citing comparable properties are selling at £350,000!
The moral of the story is that buyers are trying it on all over the place at the moment because like sheep they follow what 'property educated' journalists NOT!!! would have them believe.
For me the bottom line is property has made 8% per annum for the last 50 years and only gone down in value for 5 out of those 50 years. The biggest single drop was in 1992 by just 8%. So all this bull about prices about to go down by 30% is mere speculation that looks good on a headline. I would say to the doubters buy a stronger pair of glasses so that you can read the rest of the article where most commentators dismiss their own headline!
"The greatest trick the Devil played, was convincing us all that he did not exist"
in training 
