no wonder housing market is shafted
Discussion
My mortgage is with a certain bank based in halifax. Rang them today to query something on my mortgage (thinking about letting house and checking ok with lender).
They have decided my house is now worth alomost 40K less than I paid for it last year (20% drop). I paid £175k and that included 8K discount becasuewe were in a position to buy.
Their reason:- "We now delibarately undervalue ALL houses for mortgage purposes incase we need to reposess them and sell them at auction"
So rang the builder who is still selling houses on our estate to ask latest selling price for my type of house, Last month sold one for £179950. Told them about my lender and she said we have been having massive issues in the last month. A lot of houses could have been sold on the estate but lenders are deliberately undervaluing.
I know prices have dropped but 20%+ in 1 year?????
I didnt realsise how fooked the market was
Halifax did offer to come out and re value the house if I was willing to pay
They have decided my house is now worth alomost 40K less than I paid for it last year (20% drop). I paid £175k and that included 8K discount becasuewe were in a position to buy.
Their reason:- "We now delibarately undervalue ALL houses for mortgage purposes incase we need to reposess them and sell them at auction"
So rang the builder who is still selling houses on our estate to ask latest selling price for my type of house, Last month sold one for £179950. Told them about my lender and she said we have been having massive issues in the last month. A lot of houses could have been sold on the estate but lenders are deliberately undervaluing.
I know prices have dropped but 20%+ in 1 year?????
I didnt realsise how fooked the market was
Halifax did offer to come out and re value the house if I was willing to pay
Edited by David87M3 on Thursday 13th November 22:05
David87M3 said:
2 sMoKiN bArReLs said:
...and new builds usually carry a bit of a premium, so direct comparisons aren't always possible
No they dontalways cheaper if bought on first phase as i did
johnfm said:
Every surveyor I speak to undervalues to cover their ass. Pathetic really.
Bane of my life mate
However, I was chatting to a surveyor a couple of weeks ago, and his firm is being sued for professional negligence at the moment by someone who bought 20 off-plan flats in Bradford in Nov 07 for £120k each & has now had them re-valued at less than £60k. He obviously won't win, but he admitted as much they are under-valuing. Funnily enough, he also works for a Halifax based building society...
David87M3 said:
2 sMoKiN bArReLs said:
...and new builds usually carry a bit of a premium, so direct comparisons aren't always possible
No they dontalways cheaper if bought on first phase as i did
It was the last on the site and the developer was desperate to sell.
It was previously listed at 260k, he paid 160.
If the builders need to sell they are offering big discounts to those who can stump up the cash.
As a first time buyer all this talk of huge under valuations and people buying houses with 100k knocked off makes me think NOW is the time to buy, yet i then read and personally feel this time next year will be much worse.
I think this is just the start. Half of my mind thinks that buying a property will ultimately be easier and the other half of me sees it as impossible as if i have no work next year it doesnt really matter how cheap they get.
I think this is just the start. Half of my mind thinks that buying a property will ultimately be easier and the other half of me sees it as impossible as if i have no work next year it doesnt really matter how cheap they get.
m3jappa said:
As a first time buyer all this talk of huge under valuations and people buying houses with 100k knocked off makes me think NOW is the time to buy, yet i then read and personally feel this time next year will be much worse.
I think this is just the start. Half of my mind thinks that buying a property will ultimately be easier and the other half of me sees it as impossible as if i have no work next year it doesnt really matter how cheap they get.
Why not buy now if you find something you love at a price you can afford? Forget what it's going to do in terms of price next year as if its your home it's by & large irrelevant unless you have to sell it & unless you're a dimwit there will always be jobs. I would work at McDonalds or sweep the streets if it meant keeping my home.I think this is just the start. Half of my mind thinks that buying a property will ultimately be easier and the other half of me sees it as impossible as if i have no work next year it doesnt really matter how cheap they get.
Trying to guess what the housing market is going to do is one of the contributing factors to the situation we're in at the moment. People got involved in a market they had only ever seen rising, therefore had no concept of what would happen if it fell.....
I have a drill & a mirror yet wouldn't dream of "getting into dentistry" yet my dentist told me in 2007 he was "getting into property" as he had made some money when he sold his house. So far his losses have been over £150k.
Not having a dig at you personally so don't take offence - I just don't see what's wrong with buying a home because you like it & can afford it, rather than what it could be worth next year.
Surely you dont need to guess when the market has bottomed out?
You buy when it just starts rising. As if its rising its probably hit the bottom.
Its not rising now and its not likely to for some time.
The caveat to this is the house you want may not be available at the time you want it to be.
Money/choice etc.
You buy when it just starts rising. As if its rising its probably hit the bottom.
Its not rising now and its not likely to for some time.
The caveat to this is the house you want may not be available at the time you want it to be.
Money/choice etc.
Plotloss said:
Surely you dont need to guess when the market has bottomed out?
You buy when it just starts rising. As if its rising its probably hit the bottom.
Its not rising now and its not likely to for some time.
The caveat to this is the house you want may not be available at the time you want it to be.
Money/choice etc.
What I was trying to say but with much less waffleYou buy when it just starts rising. As if its rising its probably hit the bottom.
Its not rising now and its not likely to for some time.
The caveat to this is the house you want may not be available at the time you want it to be.
Money/choice etc.
David87M3 said:
2 sMoKiN bArReLs said:
...and new builds usually carry a bit of a premium, so direct comparisons aren't always possible
No they dontalways cheaper if bought on first phase as i did
fido said:
David87M3 said:
I know prices have dropped but 20%+ in 1 year?????
It's shocking - i would expect it to be somewhat worse than 20% if they had to auction the property.
king thing. They read the 'asking price' on the paper they are sent by the building society, subtract 20% or 30% if their professionaal liability insurance is rubbish, and send in their bill.It is not a great basis for the entire housing market, is it.
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