Property Purchase Valuation

[Jow]

Hi Guys,

I've recently signed an offer to purchase a house for R1.2m.
After applying to multiple institutions for a bond, I received my first approval today, but they valued the property at R1.15m. This has obviously affected the LTV ratio and upped the interest rate which they are willing to offer. The loan consultant suggested that I should negotiate with the seller to adjust the selling price to R1.15m.
I'm not sure what the best way would be to proceed with this. Do I wait for the other institutions to come back with their responses and valuations and hope that someone else will value the property at R1.2m, or do I negotiate with the seller and if so, what is the best way to proceed with such a negotiation?
Any advice or experiences would be greatly appreciated, since I'm a first-time buyer.

 

[davemc]

Does your offer to purchase contain a clause along the lines of : If I do not get mortgage loan approval, then this offer is no longer valid. ?

 

[Jow]

Yes it does, however since the bond has been approved, albeit at a lower valuation, I would assume that this clause is not broken.

 

[hoegh]

Throw the offer in there and see what they say, it is a buyers market at the moment, I would be tempted to put in an offer at R1.1 and see their reaction