What to do if your property is down valued

Ask the seller to reduce the asking price

It might feel like a long shot, but if your initial offer has been accepted, you may be in a stronger position than you think to ask your seller to lower their asking price. A down valuation may occur several weeks after your offer has been accepted, and depending on your situation, your seller might not want to restart their sales process. 

Bear in mind that if your lender has down valued the property, then others may do the same. Your seller is likely to be aware of this and could be willing to accept a lower offer.

Pay the extra money yourself

If you’re able to, you might decide to pay the difference between the valuation and agreed price yourself, if it doesn’t amount to a large sum. Of course, this may be unaffordable, and it’s worth asking your seller to lower the asking price before you stump up the extra money. They may agree to some reduction in the asking price, reducing the amount you’ll need to pay.

Some buyers take out an additional loan to cover the cost, but as with any financial commitment, it’s important to carefully consider the implications of additional repayments when you’re taking out a mortgage as well.

Apply for a mortgage with a different lender

If you really want to buy the property, but neither of the above options work for you, you could consider applying for a mortgage with a different lender. However, it’s a time-consuming process, as you’ll essentially be starting from scratch again, and there’s no guarantee that the new lender won’t also down value the property. 

Walk away from the purchase 

If none of the options mentioned so far work for you, you might need to walk away from the purchase. Unfortunately, this might mean you lose some money that you’ve paid to your lender for booking or valuation fees, and for legal work, but it may ultimately be the best decision and your only option.

Author: wpadmin

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