[Anonymous]

Hello.

We bought off plan on the Costa Blanca around 15 months ago secured with a 30% deposit the property is now completed .
On applying for the mortgage the bank tells us that the property according to their valuers is 40000 Euro short of what our estate agent told us it could be sold for( we asked for market value from them as we intended to sell ) so we was very surprised.
More significantly according to the bank it means the property is not worth the money we have agreed to pay on the contract with the developers.
We are faced with having to find the difference of around 9000 Euro just to get a mortgage and are for all intended purposes in negative equity before we even start.
Our realtor who prior to this was full of advice has become a ghost and If i had anyone else to seek options from i would do so , but i havnt as i would rather not ask for the time of someone who now obviously does not want to give it .
That said if this is the case of having to bite the bullit and pay the extra as its a chance we took …..so be it i can live with that but , i would like to know obviously if there is anything else we can do.
Our lawyer claims he has not come across this situation before and suggested getting another valuation which we did that was not much better.
Thank you in advance for any advice received
🙄

[Anonymous]

I cannot give you advice on your situation(I am sure someone will be able to though) but having read reports recently on how overpriced property on the Costas is, I think when the time comes for people to complete on their property, we will hear more stories like yours. I guess you could try negotiating with the developer.

You say that if you have to bite the bullet to make up the shortfall, you will. You should then put it to the back of your mind and enjoy your property until such time as things pick up again.

[Anonymous]

Yes we bougfht on the costa del sol and we are in the same boat we bought for 360000 and the apartment was valued at 330000. Looks like a sign of the times – so much for making a killing buying off plan!!!!!

[Anonymous]

Cant give you much advise apart from re negotiate with the builders.

I am a bit confuse you said that the agent told you that it could be sold for euro 40,000 more !!!!. does this mean that if you paid e.g euro100,000 you can now sell it for euro 140,000 ????? ( selling price and mortgage are two different amounts )

However your mortgage would be based on euro 100,000 the purchase less euro 30,000 = euro 70,000 therefore your mortgage will be for euro 70,000.

Assume that your current valution is say euro 80,000 than you will need the difference ( plus other cost as notary etc)

Are you taking the builders mortgage or re mortgaging. if you have a choice take the builders mortgage as this will save a good % you on your completion. Good luck

[Anonymous]

Hello Again.

In responce to a query ,we were asking to speak to our agent to ask how much the property was worth on the market (as we have wanted to sell for some considerable time) but i was continually getting the knock back from the switchboard saying he was unavailable .
This was racking me off , i smelt a rat.
I then asked to speak to the representative who had sought our furniture explaining to her that we was not going to pay for the furnishings at the flat before finding out whether the funds spent on them said items could be recouped fully through any subsequent sale . She must of then directly spoke to him ( thinking of her potential commission from us for the furniture) and he rung back within 10 MINUTES !!!
In it he hurredly explained that our 155000 apartment was now worth 186000 Euro and said that the furnishings should be bought straight away !!

I had long since feared the worst by now so thought that i should wait for the banks valuation before giving the agents another cut , as previously explained , i am glad we did.
This is anyway our story thus far , i hope it is an isolated one , but fear it wont be .

With regards to all . 🙄

[mike]

I hope you don’t mind if I ask some questions and put some figures but I’m confused.

@Ron wrote:

Hello.
We bought off plan on the Costa Blanca around 15 months ago secured with a 30% deposit the property is now completed .

So, the final property cost would be, for example, 100K and you placed 30K as a deposit.

@Ron wrote:

On applying for the mortgage the bank tells us that the property according to their valuers is 40000 Euro short of what our estate agent told us it could be sold for( we asked for market value from them as we intended to sell ) so we was very surprised.

So, the completed property is only worth 60K according to your mortgage provider. You have paid 10K so that means that you have to find another 10K (9K in reality, the price wasn’t exactly 100K)

But surely when you bought it for 100K the estate agent told you it would be sold for far more than the 100K? Is the mortgage provider valuation short of your purchase price or short of what the estate agent told you it could be sold for on completion?

Oh, well done with the furniture issue and best of luck with this purchase.

[Anonymous]

The estate agents valuation did mean we could sell for far more than the purchase price but in reality his price was far removed from actual market valuation so in my experience get an independant quote if required.
He basically told us what we wanted to hear .

In responce to your question :

The agent did tell us we could sell for far more than the purchase price and he kept this pretence going to gain more commission from a furniture sale .The mortgage providers valuation is 9k short on purchase price .
Regards.

[Anonymous]

@Ron wrote:

He basically told us what we wanted to hear

Unfortunately, the overwhelming majority of estate agents here, especially the expat ones, have no previous experience, no training and are certainly not qualified to value properties. Perhaps our contributing estate agents could tell us about their qualifications and training to disprove this which would be most welcome.
Of course they’ll tell you want you want to hear, and what they themselves want to believe. I bet you had nothing in writing from this agent regarding his “valuation”?
However, even a professional valuation is only a “snapshot” of what other, similar properties in the same area have just sold for. The very next day, demand and therefore prices could plummet…or rocket! As with any investment, nothing is guaranteed.
At least you seem to have sold for a profit if I’m reading your posts correctly, although from your first post I got the impression you were stuck with a property “worth” less than you paid for it?

[Author]

Posts