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House undervaluations

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  • 08-12-2008 3:21pm
    #1
    bigsam
    Closed Accounts Posts: 55 ✭✭


    Hi

    Anyone out there have any first hand experience on what happens after you get a undervaluation on new property.....
    we put down a deposit on a new build last year and we got loan approval from bank...now the bank is valuing the house a nearly 30 grand less..we are pretty stuck we don't have this amount and can't possibly get it if the developers dig their heels in what can they do


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    #2
    loyatemu
    Registered Users Posts: 14,922 ✭✭✭✭loyatemu


    have you asked the developers? - most of them are taking whatever they can get at the moment.


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    #3
    bigsam
    Closed Accounts Posts: 55 ✭✭bigsam


    ya we did but they aren't saying much at the moment...
    just wondering what happens if they don't give in


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    #4
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    You just need to be a bit ballsy about it.

    If you walk away from it, the builder gets your deposit. They can take you to court for breach of contract. However, this is a lengthy and expensive process and the builder will only end up getting a fraction of what the house was worth. You probably won't lose €30k in this process. So from your POV, it might work out better to walk away than pay the full price.

    But it's in yours and the builder's interests to do a deal. As pointed out, most of them are taking what they can get, and I know of a number of people who've gotten out of their contracts by going to look at the place and finding deviations from the original plans (assuming that it wasn't built when you signed). If the house differs significantly from the plans (usually in terms of square metreage), the contract is technically void.

    You just need to be firm on it and don't be afraid to ask for what you want. Don't worry about "annoying" the developer.


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    #5
    bigsam
    Closed Accounts Posts: 55 ✭✭bigsam


    ya thats what we're doing at the moment just thinking bout what happens if developer doesnt move and mortgage approval runs out ...
    To be quite honest we don't have the money to make up the difference and have no way off getting it I'd just hate to think we could be brought to court owing money for something we don't have and had no control over
    Im not sure how we could be ued though if we have no assets any ideas????


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    #6
    biggus
    Closed Accounts Posts: 510 ✭✭✭biggus


    Get legal advice first, if its only a booking deposit its refundable (if developer still has money) if you signed a contract talk to your solicitor.


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