Jump to content
House Price Crash Forum
Sign in to follow this  
sbn

Don't Panic If You Have To Pay Less...

Recommended Posts

in this mornings City AM - a top quality publication usually...

"Q.Dear Russell, I am a first-time buyer, please can you advise me on the buying process?

A.Before you have found a property and agreed to buy, you need to make sure that you have your finances all in place. It is also really important to have your solicitor set up – the longer you leave it to shop around for the solicitor, the more you undermine your position as a serious buyer. If you are ready, then it shows that you are a decisive buyer. This will stand you in good stead if there are any problems further down the line. Don’t be tempted to cut costs when hiring a solicitor – you want a recommended specialist in residential law where possible.

If the mortgage lender down-values your property, then try not to panic. Ask yourself if the lender is justified. If you feel that it isn’t, then see if you can create a case for why the valuation should be boosted. But if you think the bank has a point, then do your research and be prepared to renegotiate with the seller. You might be able to reduce the selling price at least partially. You also need to be thinking ahead about what work you might need to do to the property. Get a quote for this before you agree."

Am I missing something here? Your lender says "You're overpaying for this - buy it for less or look at something bigger for your money." and this is something that might make you panic?? might a person go into a shock at the prospect of negotiating with the seller?? backed by information from a chartered professional?? - ok, bad if you've already splashed on an expensive survey, but if not??? I just don't get it - somebody pls clear this up for me.

Edited by sbn

Share this post


Link to post
Share on other sites

Am I missing something here? Your lender says "You're overpaying for this - buy it for less or look at something bigger for your money." and this is something that might make you panic?? might a person go into a shock at the prospect of negotiating with the seller?? backed by information from a chartered professional?? - ok, bad if you've already splashed on an expensive survey, but if not??? I just don't get it - somebody pls clear this up for me.

Sorry, but I can't clear this up for you as it's absolute garbage.

If I buy a house and pay for an expensive survey, I will still be keeping fingers and toes crossed that the surveyor down-values it by as much as possible. The higher the better, and then I'd negotiate a bit less just because I could.

There's a 99% chance the seller would comply with the valuation rather than let a buyer walk, only for the next buyer to hit exactly the same situation.

Share this post


Link to post
Share on other sites

Am I missing something here? Your lender says "You're overpaying for this - buy it for less or look at something bigger for your money." and this is something that might make you panic??

For ******'s sake, sbn, have you learnt nothing from Phil n'Kirsty? :rolleyes:

If it is your dream house, in a desirable area with kerb appeal then you should, as a matter of course, offer 10% over asking. It'd be rude not to. Ok, you might go in with some cheeky low ball offer (say, £2k off asking), but good God man, you cannot risk losing your dream home! Remember what the estate agent said about those other interested buyers - you know, the ones who are proceedable with a bank balance to rival Croesus. Do they care about the surveyor? I don't think so!

Edited by FaFa!

Share this post


Link to post
Share on other sites

When I first read it, I thought the chap had made a genuine mistake and forgotten that this was an FTB - I thought that he'd gone off on an irrelevant ramble about a dropped value on the OP property.

But then I realised that he wasn't. I still find it unbelievable he wrote this.

Thanks for confirming my suspicions peeps - I was genuinely worried that I had missed something

Share this post


Link to post
Share on other sites

For ******'s sake, sbn, have you learnt nothing from Phil n'Kirsty? :rolleyes:

If it is your dream house, in a desirable area with kerb appeal then you should, as a matter of course, offer 10% over asking. It'd be rude not to. Ok, you might go in with some cheeky low ball offer (say, £2k off asking), but good God man, you cannot risk losing your dream home! Remember what the estate agent said about those other interested buyers - you know, the ones who are proceedable with a bank balance to rival Croesus. Do they care about the surveyor? I don't think so!

Nooooo. You've absolutely got to show them you are a serious buyer. There was a repeat on of LLL earlier this week. Sat in a pub garden they discuss their tactics....

Phil advises ' they've had a rival offer (tone of voice rises as he says) BUT.........(dramatic pause) its not been accepted. (Smiles) Ive rung the agent, the agents friend, the vendor and vendors partner but they wont tell me how much. (No Sh!t) I think we need to seal the deal with an offer of asking price'

Phil rings and does his hard negotiating. Hello mr agent. My customer is going to spunk away full asking on the condition you take it off the market straight away! (Go Phil - you drive a hard bargain)

Phone rings a few minutes later. Not accepted. We've gone back to the other side, we'll let you know.

Fast forward a few days and they are talking about how they eventually sealed the deal, but didnt mention how much for. The day I ever sell a house, I want Phil to be advising and negotiating for the buyer.

Edited by Caveat Mortgagor

Share this post


Link to post
Share on other sites

For ******'s sake, sbn, have you learnt nothing from Phil n'Kirsty? :rolleyes:

If it is your dream house, in a desirable area with kerb appeal then you should, as a matter of course, offer 10% over asking. It'd be rude not to. Ok, you might go in with some cheeky low ball offer (say, £2k off asking), but good God man, you cannot risk losing your dream home! Remember what the estate agent said about those other interested buyers - you know, the ones who are proceedable with a bank balance to rival Croesus. Do they care about the surveyor? I don't think so!

te he he.

Share this post


Link to post
Share on other sites

It's a FAQ over at MSE...

The irony of people going to a money saving forum to ask how to spend more money always amuses.

more like a FAQ UP.

Share this post


Link to post
Share on other sites

It's a FAQ over at MSE...

The irony of people going to a money saving forum to ask how to spend more money always amuses.

In a Ponzi the more you spend the more you "earn".

Share this post


Link to post
Share on other sites

In a Ponzi the more you spend the more you "earn".

I thought it was, the more you spend the more I 'earn' .........

...... until you don't.

Share this post


Link to post
Share on other sites

I think I've read this differently here. The issue is that if the seller is asking for 125K, which meets your budget, but the bank says it's only worth 100K and they'll only lend you finances for that, then you have to persuade the seller that they need to drop to 100K. And we all know how keen sellers are to drop their prices... So, yes, that might cause a panic.

Similar situation happened to a friend of ours, who ended up not buying because the bank didn't agree with the valuation and wouldn't lend against it.

There was also a discussion on MSE which the HPC brigade started commenting on where the buyer was indeed starting to 'panic' that the bank wouldn't lend against the value they were trying to buy at. Sorry, can't find the link.

Share this post


Link to post
Share on other sites

I think I've read this differently here. The issue is that if the seller is asking for 125K, which meets your budget, but the bank says it's only worth 100K and they'll only lend you finances for that, then you have to persuade the seller that they need to drop to 100K. And we all know how keen sellers are to drop their prices... So, yes, that might cause a panic.

Similar situation happened to a friend of ours, who ended up not buying because the bank didn't agree with the valuation and wouldn't lend against it.

There was also a discussion on MSE which the HPC brigade started commenting on where the buyer was indeed starting to 'panic' that the bank wouldn't lend against the value they were trying to buy at. Sorry, can't find the link.

Yes - that's what I think he's saying might cause panic. But surely you'd just go and buy a different house from a seller that wasn't deluded!! For this to be a problem, you have to be emotionally attached to the house. And surely nobody buys a house with their heart not their......

Ah - I think I've just answered my own question. - thank you rant'n'rave - you have found the thing I was missing.

Property Porn indeed does have a lot to answer for.

Edited by sbn

Share this post


Link to post
Share on other sites

Why would anyone buy with their heart in this country? Unless you are reasonably minted one undersized shitbox is much the same as another

Yes - good point - let us not forget this is a FTB.

Share this post


Link to post
Share on other sites

I think I've read this differently here. The issue is that if the seller is asking for 125K, which meets your budget, but the bank says it's only worth 100K and they'll only lend you finances for that, then you have to persuade the seller that they need to drop to 100K. And we all know how keen sellers are to drop their prices...

However, if one surveyor says it's only worth 100k, it is likely other surveyors will say the same. One might point this out to the seller; that in fact the seller is not facing a choice between selling for 125k and selling for 100k, he has a choice between your 100k now, and the 100k the bank will lend the next buyer, and the next one etc etc.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.