The nervous wait to exchange....

jonneymendoza · 11 Jun 2022 at 15:51

HungryHippos said:
House price index exists which tells you roughly % increase in the area over last x months/years.

Such as this website? https://themovemarket.com/

jonneymendoza · 11 Jun 2022 at 15:52

dLockers said:
Offer over, then renegotiate if mortgage offer pins you down to a lower figure.

im just worried that if i offer too high then lender will say no thats overpriced and will have to pull out as i wouldnt be able to cough up the extra to nail down the property

Irish_Tom · 11 Jun 2022 at 16:03

We had an offer accepted on a place today so looks like we’re getting back on the conveyancing merry-go-round… Can’t wait.

It will be worth it in the end though, it’s a lovely house.

jonneymendoza · 11 Jun 2022 at 16:22

Irish_Tom said:
We had an offer accepted on a place today so looks like we’re getting back on the conveyancing merry-go-round… Can’t wait.

It will be worth it in the end though, it’s a lovely house.

congrats.

what happened to the previous property you had a offer accepted?

Did you also offer above asking price?

b0rn2sk8 · 11 Jun 2022 at 17:20

jonneymendoza said:
What if the last property that was sold in the same road was 2 years ago?

How does an estate agent value a property?

They’ll be looking at similar properties in the area (E.g. the entire town of its smaller or section of the city, not necessarily the same road or even estate).

jonneymendoza said:
im just worried that if i offer too high then lender will say no thats overpriced and will have to pull out as i wouldnt be able to cough up the extra to nail down the property

Worry about it if you need to. Life’s to short to be getting hung up on this sort of thing. You won’t be the winning bid or even be in with a look in if your offer is below everyone else’s.

See @dLockers comment.

Irish_Tom · 11 Jun 2022 at 17:57

jonneymendoza said:
congrats.

what happened to the previous property you had a offer accepted?

Did you also offer above asking price?

Thanks!

The conveyancing back in September last year was for the sale of our old house. We moved into rental and have been stalking Rightmove ever since.

We originally offered £600k on an asking price of £650k — met in the middle at £625k.

413x · 11 Jun 2022 at 19:38

jonneymendoza said:
will lenders accept morgtage of property thats had a offer accepted that is 10% more than asking price?

My lender down valued my house a lot on our remortgage.
Went from about 63 percent LTV (zoopla) to 72 percent.
No issue as its same LTV band but I was. Wondering.

Did my lender under value?
Did zoopla over value?
Both?

Or is my lender pricing in falls as the mortgage is valid for 5 months?

I know zoopla isn't exactly accurate. But the discrepancy was larger than I expected.
It's a fair value if you just look at '3 bed detached' but the actual house is nicer with much bigger grounds than the others.

It was surprising.

So don't be shocked if the lenders valuation is different to what you're expecting

grudas · 11 Jun 2022 at 21:54

squerble said:
Great news! Did they say why there was such a big gap between exchange and completion, or is that just to satisfy both parties and give time to pack?

Thanks. Yeah, they want their son to finish GCSEs before moving hours away and adding to stress. Fine with us tbf, gives us extra time.

-Ad- · 12 Jun 2022 at 09:02

jonneymendoza said:
Ok cool.

How will they value the house? I heard they get there own surveyor to do a small level 1 surveyor themselves?

How does there valuation of the property defer for how the estate agent had valued and put the property on the market?

Valuations are not only dependent on the house or what others have sold for locally.

It's taken into account, but the mortgage company are also investing in you. So if you say pay 10k over, then they will look at comparable sales and values, what the area is likely to do in the future and how good your affordability is, all together.

They can and do value properties at a high price, say if you've payed overs. It's all a game really and all they care about is earning their interest back off you in the least risky manner.

HangTime · 12 Jun 2022 at 23:21

mattyfez said:
Homebuyers surveys (level 1) are barely worth the paper they are written on. They are just to satisfy the mortgage company that if you default they won't be too much out of pocket.
Even a level 3 survey, whilst more comprehensive is just a more in depth indicator of what you're getting yourself into.
The surveyors themselves also have to protect thier own backs so they will always have disclaimers and say things like 'bit of moss on roof' recommend hiring a professional to appraise and make good, estimate £500.

So you do have to read between the lines a little bit. But a level 3 survey will be more comprehensive and highlight actual faults in general structure/roof /damp that could cost serious money.

It's worth doing a level 3 survey at a minimum unless it's a new build, but if you're buying a more complex place listed building /extensions and structure modifications maybe an even more in depth custom survey.
A level 3 shouldn't cost any more than £600, dunno where some people are getting quotes from lol!

It's a tough one, our first house we had a full structural survey done (to your first point, didn't really seem worth doing the basic surveys) and in hindsight we probably took it all too literally and arranged to have all the works done, DPC, repair firewall in the loft to neighbouring property, various other things. To justify the cost and cover their backsides the surveyors probably overplay some issues. A part of me kind of wishes we'd literally just done the bare minimum to get a mortgage and moved in oblivious to faults, sorting it all out was a lot of hassle and we ended up moving after less than 2.5 years anyway.

jonneymendoza · 12 Jun 2022 at 23:31

-Ad- said:
Valuations are not only dependent on the house or what others have sold for locally.

It's taken into account, but the mortgage company are also investing in you. So if you say pay 10k over, then they will look at comparable sales and values, what the area is likely to do in the future and how good your affordability is, all together.

They can and do value properties at a high price, say if you've payed overs. It's all a game really and all they care about is earning their interest back off you in the least risky manner.

Thanks. I guess I just offer what I can and hope for the best.

HangTime said:
It's a tough one, our first house we had a full structural survey done (to your first point, didn't really seem worth doing the basic surveys) and in hindsight we probably took it all too literally and arranged to have all the works done, DPC, repair firewall in the loft to neighbouring property, various other things. To justify the cost and cover their backsides the surveyors probably overplay some issues. A part of me kind of wishes we'd literally just done the bare minimum to get a mortgage and moved in oblivious to faults, sorting it all out was a lot of hassle and we ended up moving after less than 2.5 years anyway.

Its better to be safe than sorry tbh.

Anyways I have a question regarding possible extension of this property I saw.

Does this look like a manhole cover? If yes, this could prevent us doing an extension as we would need to make sure this has easy access still so we can't completely cover it up?

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grudas · 13 Jun 2022 at 08:34

@jonneymendoza I wouldn’t worry about the valuation too much. We offered 32k over asking on a 400k property and bank valued it at our offer. I was worried too but if the market is hot and things are selling above asking in your area then it’ll be fine.

dlockers · 13 Jun 2022 at 08:59

jonneymendoza said:
Thanks. I guess I just offer what I can and hope for the best.

Its better to be safe than sorry tbh.

Anyways I have a question regarding possible extension of this property I saw.

Does this look like a manhole cover? If yes, this could prevent us doing an extension as we would need to make sure this has easy access still so we can't completely cover it up?

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Moving them is BAU for extensions, don't worry at this stage.

jonneymendoza · 13 Jun 2022 at 09:56

grudas said:
@jonneymendoza I wouldn’t worry about the valuation too much. We offered 32k over asking on a 400k property and bank valued it at our offer. I was worried too but if the market is hot and things are selling above asking in your area then it’ll be fine.

Thanks.

dLockers said:
Moving them is BAU for extensions, don't worry at this stage.

BAU for extensions? What do you mean?

squerble · 13 Jun 2022 at 10:04

jonneymendoza said:
Thanks.

BAU for extensions? What do you mean?

He means business-as-usual, so it's extremely common to have to deal with manhole/drainage covers when extending a house.

jonneymendoza · 13 Jun 2022 at 12:03

squerble said:
He means business-as-usual, so it's extremely common to have to deal with manhole/drainage covers when extending a house.

Ahh right ok cool thanks! I thought that having that could be a deal breaker for an extension

Bunka · 13 Jun 2022 at 12:35

Not at all, we're looking to build out over a side return (victorian terrace) and they simply dig out and move the manhole/inspection chamber. Very common.

dlockers · 13 Jun 2022 at 16:47

Mortgage offer came through. Some eyewateringly big numbers in there :cry:

grudas · 13 Jun 2022 at 18:09

dLockers said:
Mortgage offer came through. Some eyewateringly big numbers in there

Yea scary to see but meaningless as I can’t see anyone sitting with the same lender and letting it run through

dlockers · 13 Jun 2022 at 18:33

grudas said:
Yea scary to see but meaningless as I can’t see anyone sitting with the same lender and letting it run through

You mean as it hits full variable? I may have to swallow it for a short while.

My current fix ends in March 2024; the new part of the mortgage is 2 years from completion. The gap initially was a few months but now I'm quite a bit out of alignment.

I guess I could 'forever' have two seperate mortgages.