The nervous wait to exchange....

  • Thread starter Thread starter noj
  • Start date Start date
fastwunz said:
just because people want to pay more does not in any way make the property worth it.


you should thank the surveyor for protecting your wallet not moan about it.
Click to expand...

Precisely! The only way we could pay what our original offer was would be to massively eat in to the capital which we have set aside to renovate the property.

My gripe is with the estate agents for allowing the property to go on the market for the price it did originally - we're talking a price disparity of £60,000, not an inconsequential amount of money!
 
Not in a banks view, they will only lend against the actual value of the property, not what you're willing to pay.

It's fine if you're a cash buyer, a royal pain in the butt if you need a mortgage.

EDIT: If the survey had come back and there was only a £10k disparity between our offer and valuation, we wouldn't lose the house for the sake of that - £60k on the other hand..... We're not prepared to be mugged off by the vendor and pay extortionate amounts.
 
PermaChanged said:
Not in a banks view, they will only lend against the actual value of the property, not what you're willing to pay.

It's fine if you're a cash buyer, a royal pain in the butt if you need a mortgage.
Click to expand...

That doesn’t mean it isn’t worth that amount of money. It just means banks have a lending criteria and a risk profile that they are willing to lend under.

The intersection of demand and supply are what determines the price. The reason I said what I said is because if you just look back through this thread houses are generally going for way more than their formal valuation. Those people are having to make up the difference in cash, especially in Scotland with their system of closed bids.

The point of the valuation is to protect the banks position to stop odd anomalies where people are paying substantially more than similar properties but if houses are consistently going for more than their valuation then the valuation is out of step with the market.

The bank ultimately doesn’t want to be in a position where they lose money in the event you default, factoring in the chances the market drops in the near future.
 
b0rn2sk8 said:
That doesn’t mean it isn’t worth that amount of money. It just means banks have a lending criteria and a risk profile that they are willing to lend under.

The intersection of demand and supply are what determines the price. The reason I said what I said is because if you just look back through this thread houses are generally going for way more than their formal valuation. Those people are having to make up the difference in cash, especially in Scotland with their system of closed bids.

The point of the valuation is to protect the banks position to stop odd anomalies where people are paying substantially more than similar properties but if houses are consistently going for more than their valuation then the valuation is out of step with the market.
Click to expand...

See here; https://www.overclockers.co.uk/foru...it-to-exchange.18591082/page-86#post-34901498

It does mean it's out of line, and is an anomaly, and therefore not worth the money.
 
Spoken to actual solicitor today (possibly first time?); All being well we should exchange tomorrow morning and he'll start submitting all the required documents to Help To Buy and chat with the developer and set a completion date. I'm hoping Tuesday next week, but I'd take Wednesday. So long as it's not Thursday onwards as I'll be very peeved at having to fork out for stamp duty - albeit a very a small amount at £1750. Last I saw of the house (weekend just gone) it seemed it just needed flooring and turf...
 
ARGAHASDHAASDHAAHFFFFFFFFF!

Estate Agent is not returning my calls, seen another property we want to look at listed by the same agent that was involved in our deal that fell through. Bit more expensive, going to have to go cap in hand to my family for about 10k but the place is in much better shape than the one we were looking at previously so would need to next to no decorating so affordability over the first 18 months is broadly in line.

I'm guessing the agent has had an offer on this place and is stalling us, either that or I upset him on Friday when he broke the news about the other place falling through, but I was very clear that my frustrations were not with him.
 
My nerves are turned up to 11 today! All buyers in the chain are ready to exchange and all deposits / funds etc have been transferred but the solicitor at the bottom is dithering and hasn't passed on the contracts to the next in the chain! We're really on a knife-edge for completing in June.
 
bJN said:
Spoken to actual solicitor today (possibly first time?); All being well we should exchange tomorrow morning and he'll start submitting all the required documents to Help To Buy and chat with the developer and set a completion date. I'm hoping Tuesday next week, but I'd take Wednesday. So long as it's not Thursday onwards as I'll be very peeved at having to fork out for stamp duty - albeit a very a small amount at £1750. Last I saw of the house (weekend just gone) it seemed it just needed flooring and turf...
Click to expand...

FYI the mortgage companies have all set a deadline for today to have "fund requests" submitted to guarantee release of funds before 30th June. I'd be pressing your solicitor some more :)
 
Ahleckz said:
Offer accepted, only 11% over the valuation this time so a big saving compared to the previous house. I've spent all day yesterday on kitchen design websites as I'm being allowed to fit a new one and there is plenty money left in the budget.

Hoping her buyer is still happy to wait (we pulled out of the previous purchase otherwise everyone would have moved by now). This house isn't in as good an area, but it's much bigger and a lot cheaper. Going for a 14 year mortgage rather than a 20 on the house before and the monthlies are the same with a lot less cash upfront.
Click to expand...

And her buyer has pulled out. ARGH.

Phone call to the estate agent tomorrow to get the flat back on the market. Hoping it’s nice and quick. Not sure if I’m meant to/I should tell our sellers? Don’t want them pulling out. I think we’d give up if that happened tbh.
 
Ahleckz said:
And her buyer has pulled out. ARGH.

Phone call to the estate agent tomorrow to get the flat back on the market. Hoping it’s nice and quick. Not sure if I’m meant to/I should tell our sellers? Don’t want them pulling out. I think we’d give up if that happened tbh.
Click to expand...

I'd certainly not mention anything to the sellers of the property you are purchasing yet and I'm sure the EA will advise the same at least in the short term. We lost a buyer and replaced them 3 days later, our sellers never found out.
 
Had contact from the agent saying the vendor has tried to contact them but they keep missing each other. This was 2 days ago. I feel like either the vendor doesn’t want to now sell the house, or the agent is stalling for offers more than the asking price. They said they’d contact me once they’ve spoken to them but how can it take over a week to?

It’s annoying that they can’t give a straight answer. Decided to look at some other properties now and if they fit the bill then happy days. Still can’t help but think that this is the house for us.
 
PermaChanged said:
Not in a banks view, they will only lend against the actual value of the property, not what you're willing to pay.
Click to expand...

Thats not true. Its based on their valuation of the property which is quite often nothing like the market value of the property. The only value a house has is what someone is willing to pay for it. It doesn't matter what you paid for it 6 months earlier if the market has crashed or boomed. We have had the bank undervalue both the places we bought and by quite a lot in both cases. In the first case they wouldn't budge despite giving them proof of identical and smaller flats in the same blocks going for more money than we were paying in the previous 3-6 months and the market had gone up since then.

It all worked out OK for us in the end but banks only care about what they think they could get for the property in a pinch if it was repossessed. We were in the flat for about 3.5 years and it went from £226k up to over £300k and then back down to about £280k as the market fluctuated before we sold. We agreed £240k with the seller and the bank valued it at £210k. It was a 3 bedroom flat and you couldn't get a run down 2 bedroom for £210k and we had quite a few flats from the block to back this up.

Banks are very much not a reliable source of valuations.
 
Completion day. We were packed up and loaded onto the vans by 11. Currently sat outside the new house while they are still packing and emptying the house… which we legally own. Fuming isn’t the word but what can I do but wait.
 
ChrisD. said:
Completion day. We were packed up and loaded onto the vans by 11. Currently sat outside the new house while they are still packing and emptying the house… which we legally own. Fuming isn’t the word but what can I do but wait.
Click to expand...

I've experienced this on every house purchase I've ever made. They'll probably leave a bunch of crap in the attic and garden / shed too.
 
PermaChanged said:
Please do explain how a RICS valuation is "quite often nothing like the market value of the property"?
Click to expand...

Because the market value of a property is whatever it will sell for. If there are 10 people willing to buy a house at £300,000 and RICS value it at £280,000, how much is the house worth?

Thats quite literally the basis of any economics. Prices can go up or down but the value of something is whatever someone is willing to pay for it. You can argue that something isn't worth what someone is paying but if the same product is being sold repeatedly for the same price then at some point you have to accept that whatever amount that is will be the value of the item.

The RICS valuation is their estimate and considering how little work most of them put into their estimates its not surprising that they are complete **** quite often.
 
You must log in or register to reply here.
Back
Top Bottom