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jamjar99

Valuation On New Build 12K Under

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Hi all,

I'm looking for some advice please!

We are buying a new build property. Original price £299,750, negotiated down to £277,750. However, we have just learned that HSBC's surveyor has valued the property 12k under at £265,000.

We are part exchanging our house (at 10k under our asking price) and have paid about £800 as deposit for extras, £500 reservation fee and probably a few hundred in solicitors fees so far.

Is there a standard procedure for this scenario? Stick to valuation and call their bluff, saying you'll withdraw? Or meet halfway? It is a forever house, but 12k is a lot of cash!

Thanks all,

Shaun

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I'd be playing some hardball with the developers and getting the full amount off the price. Pretty much any builder would happily drop from 300 to 277k without any real negotiations, probably even during the bubble era. Push them harder - they'll still be making a very healthy profit, and it's a buyers market in most locations.

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Is there a standard procedure for this scenario? Stick to valuation and call their bluff, saying you'll withdraw? Or meet halfway? It is a forever house, but 12k is a lot of cash!

£12k in the context of £277k is just over 4%. If a £12k difference to the mortgage you can get is going to hurt, it's a sure sign you're paying too much.

Now, if that difference were not 4% but, maybe, 25% instead, your concern might have a point ...

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I'd be playing some hardball with the developers and getting the full amount off the price. Pretty much any builder would happily drop from 300 to 277k without any real negotiations, probably even during the bubble era. Push them harder - they'll still be making a very healthy profit, and it's a buyers market in most locations.

They would if it were cash, but as they are taking on the risk of the PX they may be less keen.

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So realistically then, 265k or somewhere between 265k and the current price of 277k?

The fact that we are part exchanging probably complicates things slightly I'm sure.

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  • 284 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%



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