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Has anyone ever had problems with paying over the listed/guide price and then running into issues with the surveyors valuation?

We are FTB's. We had an offer accepted on a house valued at £205k, our offer was £215k. It is perfect for us location wise for both work/family reasons, and we'd be gutted to miss out. We have a surveyor booked for next week and are now worrying about them coming back and giving a value of £205k or lower, meaning we'd probably have to renegotiate our offer.

The advert had 'invited offers' between £205,000 - £230,000, and to me if the estate agent is willing to stick this on the advert they must have an inkling that it'll value alright, unless they're just trying their luck and have already had a conversation with the owners to say it may undervalue.



Just curious if others in this market have paid over the guide price to secure a house and had any issues or if they typically value alright. End of the day if it is the case that it comes under, we're happy to offer £3-5k on top of the surveyors valuation to secure it, which I think would be a more than fair offer considering they could just run into this problem again with another buyer.
 
Hollby said:
Has anyone ever had problems with paying over the listed/guide price and then running into issues with the surveyors valuation?

We are FTB's. We had an offer accepted on a house valued at £205k, our offer was £215k. It is perfect for us location wise for both work/family reasons, and we'd be gutted to miss out. We have a surveyor booked for next week and are now worrying about them coming back and giving a value of £205k or lower, meaning we'd probably have to renegotiate our offer.

The advert had 'invited offers' between £205,000 - £230,000, and to me if the estate agent is willing to stick this on the advert they must have an inkling that it'll value alright, unless they're just trying their luck and have already had a conversation with the owners to say it may undervalue.



Just curious if others in this market have paid over the guide price to secure a house and had any issues or if they typically value alright. End of the day if it is the case that it comes under, we're happy to offer £3-5k on top of the surveyors valuation to secure it, which I think would be a more than fair offer considering they could just run into this problem again with another buyer.
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My knowledge is from working in mortgages twenty years ago but the valuation is for the benefit of the mortgage company, not you. Estate agents will put a value that they think they can get away with and it will always be top heavy.
Surveyors rarely came back and said something was worth less than the offer price but I think they are more cautious now.
In theory, a house is worth as much as someone is willing to pay, but there could be a crash around the corner and being in negative equity helps nobody.
 
RestlessNatives said:
My knowledge is from working in mortgages twenty years ago but the valuation is for the benefit of the mortgage company, not you. Estate agents will put a value that they think they can get away with and it will always be top heavy.
Surveyors rarely came back and said something was worth less than the offer price but I think they are more cautious now.
In theory, a house is worth as much as someone is willing to pay, but there could be a crash around the corner and being in negative equity helps nobody.
Click to expand...
Negative equity doesn't help anyone, but it is also not a problem if you don't plan to move. I think a few people feel frantic if they think their house is worth less than their mortgage, but your house only has any value at all if you want to sell. With the rate the housing market keeps climbing, if someone can stay put for 3 years then their house ends up worth a fair bit more than they paid and they can ride out any smaller drops.

One problem we have now is that so much of the economy is driven by house prices. If there was a big crash then the whole economy would be screwed, so there is motivation from the bank of England and the government to keep that afloat. But, by doing so, house prices are way out of reach of most would-be first time buyers.
 

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