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Old 11-06-2009, 08:48 PM
lee lee is offline
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Join Date: Jun 2009
Posts: 15
Default Mortgage Survey for Valuation.

Hello to all,

Noob question !

Im a 1st time seller to a 1st time buyer.

The buyer of my house has viewed twice and after extensive talks about price, we have decided on a price through my estate agents. Their mortgage has been passed , and the buyer have instructed a solicitor to act on their behalf, who have communicated with my solicitor.

We are now at the stage of a valuation and basic survey for their mortgage company.

My question is ;

After discussing with the buyer I have agreed to a price drop in order for him to carry out certain improvements to the property.
ie; New kitchen, introducing gas to the property, new bathroom and update of the electric fuse box.

Im aware the survey is taken to ensure the house is sound and that it is worth the money agreed. So if the surveyer attends and reports that the valuation of the house is more than the agreed price, then where would i stand. Can it be a negative move for me to lower the price below valuation ?

And also if he/she reports that work such as the electric fuse box needs updating ,would that affect the price agreed, or would they take into consideration i have reduced the property by £17k in respect to work he wants to do.

Ie : If the electric box costs approx £700.00 would they suggest i drop the price agreed by that amount !

Sorry for the long post but im really confused on whats going to occur !

So lets say this has been sorted what are the next steps to the sale.

I have spoken to my estate agents but they dont want to eloberate until after this stage.

Thanks in advance.
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Old 12-06-2009, 12:56 PM
Senior Member
Join Date: Nov 2008
Posts: 101

The mortgage valuer will give their opinion on the true value of the house irrespective of what yourself and the buyer have agreed. If they think it is worth more or less they will state, although in the current climate I would be surprised if they valued it at higher than the agreed price.

The mortgage company, for the purposes of assessing the mortgage will always take the lower of valuation or purchase price.
Worldwide Financial Planning is a specialist independent provider of Large mortgages.
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Old 12-06-2009, 07:42 PM
lee lee is offline
Junior Member
Join Date: Jun 2009
Posts: 15

Thank you for your reply to a portion of my question Ronny,

Perhaps you or another member could answer my remaining portion of my question.
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Old 13-06-2009, 01:25 PM
brian's Avatar
Join Date: Apr 2006
Posts: 1,292

Ultimately, it's whatever yourself and the buyer agree - a sale price *above* the survey value would make it harder for the buyer to get a mortgage, but a sale price *below* the survey value would have no effect.

It depends on how desperate you are to sell as to how far you'll drop the price.
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Old 14-06-2009, 12:57 PM
lee lee is offline
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Join Date: Jun 2009
Posts: 15

As i dont reside in the property for sale and have no need to sell to move to another home , im not overly desperate.

I just didnt want to reduce the sale price, which I agreed to for the modernization of the house, and then end up with a mortgage valuation trying to cut the price further.

As im a 1st time seller im interested in what the next stages of the sale are.

Can anyone advise me on this please ?
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