A lower valuation can create a real financing gap. It does not, by itself, automatically change the agreed selling price. Before agreeing to a discount, establish what the lender has actually confirmed and have your lawyer check the agreement.
Separate the price from the financing
The agreed price and the lender’s accepted property value serve different purposes. A buyer’s loan also depends on the lender’s assessment and product terms.
For example, AIA Malaysia’s mortgage FAQ states that financing for a new purchase is based on the lower of the open-market value and purchase price. This is a published lender example; the buyer must confirm their own lender’s terms. Read AIA’s mortgage FAQ.
Ask whether the figure being discussed is an initial indication or a completed valuation, and whether a written financing offer has been issued. Request confirmation through the appropriate agent or lawyer without asking for unnecessary private financial documents.
Understand the cash gap
Suppose the agreed price is RM500,000, the lender accepts a value of RM460,000, and it approves financing at 90% of that value.
The loan would be RM414,000. The buyer would need RM86,000 toward the price, before other costs. That is RM36,000 more than the RM50,000 cash contribution implied by 90% financing of RM500,000.
This is an illustration, not a statement of anyone’s approved loan. Other charges and financing limits may change the actual amount required.
Check the evidence before negotiating
Review comparable transactions, the property particulars and any factual errors that may affect the assessment. The buyer can ask the lender whether a review is available and what evidence it needs. A different lender or valuation is not guaranteed to produce a higher figure.
Ask your lawyer what the existing booking terms or sale agreement say about financing, deadlines, termination and deposits. A valuation shortfall alone does not tell you whether the buyer may withdraw or whether money is refundable.
Decide whether a revised deal works for you
Options may include the buyer funding the gap, a properly documented price change, or another route permitted by the agreement. Compare the revised net proceeds with your loan redemption and selling costs before accepting.
Ensure documents accurately record the transaction. Do not agree to misleading prices or undisclosed side arrangements to obtain financing.
Discuss your property and deadline
If the proposed sale no longer looks workable within your deadline, speak to your lawyer about your existing commitments before pursuing another buyer. Tell Sell House Now about the current agreement and financing obstacle if you want another sale route reviewed. Any alternative would still need its own assessment, terms and completion checks.
The initial conversation and evaluation are free, with no obligation to accept an offer. You can also WhatsApp the team on 016 675 8378. A possible sale price and timeframe depend on a review of the property and transaction.
General information only. Confirm financing with the lender and contractual consequences with your conveyancing lawyer.