Buying a house - first steps

notevenlondon

#1221

So those estimates on Zoopla/RightMove are coming out a lot lower than the valuations. Between £375k - £385k.
They bought the property for £390k. I think realistically if they sold it now, it would definitely be less than £390k.

Does the solicitor do the negotiations? Like say I wanted to offer him £20k, would the solicitor help with negotiating that with his solicitor?


#1222

I’d probably say the mid point was £395k, no?
The guy who gave the big range is a bit of a chancer.

I might get some more valuations done.


#1223

He can sell it for what he likes can’t he? Wrongly or rightly. He currently owns it so isn’t obliged to sell at a price he doesn’t like.


#1224

I’d say 395 sounds fair. Normally you’d negotiate through an estate agent, so you’d have to do it between yourselves in this case.


#1225

Yeah of course.
But it’s also somewhat of a complicated situation. We wanted to make sure we all agreed to the offer, had the mortgage approved etc…

He’s since signed a 12 month lease on a new flat to move into in 2 weeks time and is expecting me to cover his mortgage until it’s all been sorted. This wasn’t the plan. Not sure if this puts anyone in a better position but if my offer doesn’t get accepted, i’m not just going to rent half the house off him?


#1226

Were the valuations done by estate agents?

Have the mortgage lenders done any?

Also, when did you check Zoopla? Their estimates on most London places dropped by about 3% last week.


#1227

Yes. Valuations by estate agents.

So can the mortgage lenders do a valuation before I am agreed to a mortgage?

They can’t change the name on the mortgage AND sort out our new fixed mortgage at the same time. We’re going to have to have them two sign up to a new fixed mortgage and then get me approved and change the name. I’ve got a meeting with them on Friday.


#1228

Not if you have undertaken an exercise of getting 3 valuations and then one of them gives a figure of £410k. The valuer might have been a chancer but who knows. It’s difficult to explain undertaking this exercise and then discounting one of the valuations which also accords with your own interests (getting your share cheaper). You said things are already a bit tense with it all…


#1229

I meant more from what other flats in the area have been on at recently. The reason I ask is that I’ve been studying rightmove for years to keep on top of local sales. Before I saw my estate agents I thought my flat would sell for between £220-230k. The estate agent valued it at £250k which is a fairly big jump. I said no and put it on at £240, it eventually sold five months later at £227. The point being that estate agents will often over inflate the price to win business. Are the people valuing the flat doing so because they think you might be a seller? Or do they know the real reason? If they think you’re a seller it could inflate the price they’re quoting.


#1230

Oh well then I would say that you do have some negotiating power.

I got bought out of a flat that I bought with a(n ex) friend. We got three estate agents valuations and went for the average. Thank you Foxtons for your over-inflated valuations!


#1231

They didn’t give 410 though, they gave 390-410; mid point 400. That means Meo’s dealing with one estimate of 39p and two of 400.


#1232

It would probably be a bit sensible to get some more valuations done.

Things are tense but it has to be looked at like a business transaction and this is what you’d do in that case.

Will a solicitor be able to advise better on what is a reasonable offer?


#1233

39p! But yes fair point.


#1234

Also I feel like I’d have to take some other things into consideration. The brother is getting what I think is a good deal out of this. No estate agent fees, no early termination fee etc. Ease of having someone just giving them a large cash lump sum.
Can this be taken into consideration with my offer?


#1235

One alternative Meo would be to simply average the three you have and go with 396500. Its a reasonable approach and might help keep the peace?

I would think based on the numbers 400k is a psychological barrier that the brothers would struggle to break unless there’s a bidding war/sealed bids type deal going on.


#1236

Yeah if the valuation’s causing concern then by all means get some more valuations done (you should be able to get one through your lender - this should be more definitive than an estate agent valuation).

A solicitor probably wouldn’t be much help, and the money spent on getting the solicitor’s opinion would probably cost just as much as the upfront saving to you by getting a share of a house £5k cheaper. If that makes sense.


#1237

I think that sounds reasonable.
I haven’t had all 3 in writing yet which I want to get.

TBH I’m feeling an immense amount of pressure to keep the peace and I very nearly cancelled the whole thing at the weekend…


#1238

I have access to speak to a solicitor…but that is their solicitor aka their dad :laughing:

should I just give up??? think i might give up


#1239

Is it worth half of ~£400k to you? Then go for it, if not then give up.

A few grand here and there won’t even be noticeable on a mortgage.


#1240

^this