View Full Version : House - More problems
Mark51
4th May 2007, 22:40
just in the process of buying a house and it has been very stressful up to now, mainly becasue the people who we are buying the house off are splitting up.
but today we got a phone call from our mortgage advisor telling us that the mortgage lender has been to value the house and has vauled it 5k less than our offer.
our options are at the minute as follows
1. find 5k and put that down as a deposit - we could do it but that would mean that we would have no cash left to buy stuff for the house
2. ask the seller to drop the price by 5k - they wouldnt give us an allowance for some work doing which was under 1k so cant see him dropping 5k
3. ask the seller to negotiate on the price again - cant see this happening at all
4. find 3 comparibles of houses that have sold for the same amount in that area - we have done this but the valuer can still turn round and stick with his original valuation of 5k
5. buy another house - dont really want to do this as this house is mint (or will be when its finished)
has anyone else been through this?
or any suggestions?
BenSilverSaxo
5th May 2007, 10:07
The majority of people on this forum wont have been through this and i cant say i have but i would do options 2,3 and 4. Cant you start the ball rolling with the seller by saying that it may drop through as it has been valued at 5k less. IMO as they are going through a break up they will just want this finalised and sold if they cant stand each other! Be doing option 4 as you talk to the seller about the 5K. Ben
seat-craig
5th May 2007, 10:11
give me the road name i wil find you some comparables. how many bedrooms and what price
Hello matey,
If the surveyor has valued the house £5K less than what you are paying for it then you are well within your rights to ask for a price reduction. Take a trip to the agent with all the paperwork and explain that you like the house etc. but in its current condition it has been devalued meaning you can't pay that much.
The agent will then call the vendor and explain the situation. The vendor should accept this, if they don't and put the property on the market the next perspective buyer will have problems.
Its something i don't have to deal with much as we are pretty honest with prices but it does happen to some weaker agents who use price, not presentation as there only way to get houses on the market.
Hope that helps matey :)
kcsaxo
5th May 2007, 15:22
you can always go to your sellers agent with the paperwork as mentioned and negotiate the price drop. the worst they can say is no and then make the same offer that was accepted in the first place.
is the the house in demand ie: many offers?
why would you want to shell out 5k to deposit on a house thats been devalued?
dont be afraid of negotiating, its all part of house buying, thats how we got shafted in the first place. we bought a house and in the end spent more than it was worth in renovating. if you are worried about asking for such a high price reduction then go for two grand less or something.
TheMadSaxo
5th May 2007, 16:43
Ok, I'm a mortgage advisor and will tell you anything you need to know if you want to pm me. I take it this is a 100% mortgage you've applied for.
Comparables will almost certainly be a waste of time. Even if you get half a dozen and send them to the valuer, if he was to change his mind that's basically like him admiting he's made a mistake. He's a professional and this is his judgement. He's very unlikely to revise his initial figure in my experience.
Like some others have said, your best bet is to approach the estate agent and re-negotiate. Just remember, the vendor is hardly likely to want to market the house again if you threaten to pull out completely, particularly in view of the fact that they've split up.
If all else fails and you still want the house, switch your mortgage to Northern Rock. They will use the same valuation you've had done but will lend you over and above your purchase price. You can get 125% so won't need a deposit and can even borrow additional funds to pay fees etc.
Like I said, pm me if you need any help.
seat-craig
5th May 2007, 17:00
If all else fails and you still want the house, switch your mortgage to Northern Rock. They will use the same valuation you've had done but will lend you over and above your purchase price. You can get 125% so won't need a deposit and can even borrow additional funds to pay fees etc.
Like I said, pm me if you need any help.
and why would anyone with a bit of commen sense do that? we all know mortage rates are going up. thats how you make your money re poses the house.
im not complaining because im a letting agent and it will be good for me. investors buy all the reposesions at dirt cheap prices and rent them out.( I am a letting agent).
but seriousl borrow as little as you can or people like this we screw you and you will loose your house.
TheMadSaxo
5th May 2007, 17:17
and why would anyone with a bit of commen sense do that? we all know mortage rates are going up. thats how you make your money re poses the house.
im not complaining because im a letting agent and it will be good for me. investors buy all the reposesions at dirt cheap prices and rent them out.( I am a letting agent).
but seriousl borrow as little as you can or people like this we screw you and you will loose your house.
Nonsense.
It's obvious you should borrow as little as posible but this scheme actually helps people get on the property ladder which if you knew anything about it you'd know.
For a start it's a 95% mortgage and an unsecured loan on top at the same rate so technically you've got 5% equity straight away. Less risky than a 100% mortgage and rates start at around 6% - fixed if you want so your rate won't go up.
You can even get a low start deal to make it even easier.
Loan can be used for any purpose, pay other debts off (i.e reduce outgoings), help pay fees etc, etc. Loan can also be repaid over any number of years, 5 - 35 years.
You also get a cashback of £1000 which will pay your valuation fee and bulk of any legal fees. Basically you could set the scheme up fee free.
It's one of the best schemes available if you haven't got a deposit and most first time buyers I see haven't.
how many people where u trying to buy with then?
y they splitting up anyway
seat-craig
5th May 2007, 17:36
6% fixed for how long 3 years? its still a lot of shit really so you get a 95% mortage and then a loan. if you ask me thats a scam. why would you want to take out a mortage and a loan at the same time. outgoings through the roof and when you get another fixed rate in a few years time you will be ballsed.
get an intrest only mortage at a fixed rate and hope that property price go up.
g14rc1 - mate, please don't comment on mortgages, you are a lettings agent and should not be trying to give advice.
Mark, go speak to the agent, make sure they know the position with the house being over valued etc. and they should understand. Also, i'd try and chat to themadsaxo, i've always found that when an applicant uses northern rock for the mortgage the surveyors are always very good and helpful!
me and the my lass had an offer in that was eccepted on a house a few years ago, it was mint, could have moved in and done nothing, it was a year old.
They dude worked down south and the lass worked locally, they were getting married and buying a bigger house to start a family.
we had surveys,searches, the lot done. everything was in place, we just had to wait for them to have the new hose finished so we could move in.
2 weeks before the due to move in date, i got a phone call saying that it was all off, we were gutted.
turns out that the dude had been knocking some other bird off and didnt have the balls to tell the lass!
we ended up loosing all the survey and search money, we also had paid for alot of things for the house to!
but it turned out for the best as we got a much better house ;)
still see the lass, just lives around the corner. They lost a massive wedge they put down for the new house they were due to get.
in an ideal world, you would want to borrow as little as possible.
we were lucky that we had a big deposit saved up.
if you really want the house and need 5k, if you have that saved up, just use that. you dont need to get everything in one go for the house ;) get it all bit by bit, that way it feels more of an achievment :)
seat-craig
6th May 2007, 11:29
g14rc1 - mate, please don't comment on mortgages, you are a lettings agent and should not be trying to give advice.
i will give advice on anything i want
TheMadSaxo
6th May 2007, 14:00
6% fixed for how long 3 years? its still a lot of shit really so you get a 95% mortage and then a loan. if you ask me thats a scam. why would you want to take out a mortage and a loan at the same time. outgoings through the roof and when you get another fixed rate in a few years time you will be ballsed.
I just explained ALL of this. If you didn't get it first time, I'm not going through it again.
get an intrest only mortage at a fixed rate and hope that property price go up.
Take out an interest only mortgage and 'hope' prices go up? That's sound advice if ever I heard it! LMFAO! :clown:
Mark51
6th May 2007, 20:03
cheers for all the responses, will be finding out what the valuer has said tuesday or wednesday next week. will let you all know what the outcome is and will be posting again with more questions
i will give advice on anything i want
your not qualified, But go for it :y:
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