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The Times Anti "downvaluing" Propaganda Continues


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HOLA441

Don't worry though, this canny, savvy first time buyer was wise enough to change lenders so he could enjoy paying full asking price ;)

http://property.timesonline.co.uk/tol/life...icle6850340.ece

When Sam Rous, 23, spotted a two-bedroom new-build house in the village of Fulbourn, Cambridgeshire, on sale for £215,000 this summer, he knew it was perfect. With 900 sq ft of space and a small garden, it was a great first-time buy for him and his girlfriend, Lucy Fox, also 23, who works for an exam body — and, unusually for first-time buyers, they had a 25% deposit. So when he was told by RBS, his mortgage lender, that its surveyor had valued the property at only £185,000 — leaving the couple to come up with another £23,000 for their deposit — he was not best pleased.

“We approached the surveyor directly to ask how he came to that conclusion,†says Rous, himself a graduate surveyor. “After all, other houses on the development, of exactly the same size and specification, were under offer at the same price. But we didn’t want to risk losing the house.â€

Rous asked the selling agent to find comparable sales prices to back up their position, as requested by RBS. The process took too long, however, so Rous and Fox approached Abbey, which readily provided them with a mortgage based on the asking price. The couple hope to be settling into their new home this week.

Edited by Turnbull2000
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and, unusually for first-time buyers, they had a 25% deposit.

what's he talking about. banks will only talk to a potential borrower if they have a minimum of 25% deposit in the current climate. Therefore it's not unusual for a ftb to have a 25% deposit, it's a prerequisite standard. therefore normal.

LOL @ Mr gormless knowing something was perfect becuase it had a small garden.

Perhaps someone should just run a campaign so that all the Mr and Mrs tosspots can borrow enough to afford a place with a decent sized garden. This downvaluing crap in the media has only started because everyone's got bored of the 'get the banks lending' mantra.

All part of the leave our house prices alone strategy. How i wish we were back in the ERM so that these mofo's could have got a good high interest rate haircut. sweeney todd style.

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I don't get why they would have to stump up a larger deposit if the value was lower. :blink:

It's because the sellers were pricing the house at £215,000 but the bank would only lend £185,000. So really they weren't paying more for the house, they just wouldn't have got it at all if they had stayed with RBS.

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It's because the sellers were pricing the house at £215,000 but the bank would only lend £185,000. So really they weren't paying more for the house, they just wouldn't have got it at all if they had stayed with RBS.

Understood. These people are mental. No thought about if they are paying the right price or not. They want it, and they want it now. So they will do what they have to in order to get it.

Will people ever learn..

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Understood. These people are mental. No thought about if they are paying the right price or not. They want it, and they want it now. So they will do what they have to in order to get it.

Will people ever learn..

Yeah, it's true but this is the thinking of most people as the 'housing market has bottomed' is the general concensus. Everybody I have spoken to has told me I should be 'buying now' or asking why 'I am not buying now'. I don't exactly knock about with people who I would describe as geniuses of the economic world but some of them are in general, fairly intelligent people - they just believe what they read in the media about house prices.

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Hmm. I think I know the development concerned - 'The Swifts'. I was almost tempted to buy a 4 bed house on it in ~Feb this year, and then came to my senses. The original asking was £320K, reduced to £299K, and the reduced again to £265. When I started to enquire about it, and mumbled about the stamp duty boundary the sales people almost bit my hand off. Without any negotiating on my part they dropped the price to £243K. I spent a lot of time inside the house, and concluded that the build quality was pretty shoddy, the garden wasn't even big enough to be called a yard and I want to knock rooms through to create a decent living space. In the end it was a 'no'. I suspect the 4 beds will be sub £200k before long.

Edited by Uitlander
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“After all, other houses on the development, of exactly the same size and specification, were under offer at the same price. But we didn’t want to risk losing the house.â€

Oh yes, I'm sure the others were under offer at the full price, these sales people never lie.

Edited by BlueRat
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Rous asked the selling agent to find comparable sales prices to back up their position, as requested by RBS. The process took too long, however, so Rous and Fox approached Abbey, which readily provided them with a mortgage based on the asking price. The couple hope to be settling into their new home this week.

.... It doesnt say anything about Abbey sending their surveyors to value the property before the contract is signed - I bet they came to the same conclusion and valued it at a much lower price

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Don't worry though, this canny, savvy first time buyer was wise enough to change lenders so he could enjoy paying full asking price ;)

http://property.timesonline.co.uk/tol/life...icle6850340.ece

the practice of downvaluing appears to be far more widespread, and is having an even more damaging effect on those trying to buy

no, it has the positive affect and you (the article author) are an idiot!

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