Nov 07, 2018 7:38 pm
After months of wait and planning we finally signed the build contract. Our total price is 650k for house and land. We're giving a 20% deposit and also 5% on the build price to the builder so they can start work as soon as finance is approved. All that brings the loan amount to around 480k.
However, the valuation ordered by our broker came back at 550k. The area we're building hasn't had too many sales in the last months so I think they don't have a lot of data to compare too. Our broker has already requested another valuation from a different panel but I'm not very hopeful.
While I wait for all that to happen, has anyone been in a situation like this before? Is there anything we can do apart from reducing the build cost? We added a feel upgrades but most of them are structure related so it's not like we can just retrofit it later.
We have a quite solid application, even if one of us lost their job, we can still cover repayments easily. We're also putting in some strong cash so I wonder if the banks might take that into consideration or they won't even look at it since we're over 100k?
Re: valuation too low3
Nov 08, 2018 10:14 pm
Have you already paid the deposit?
i've paid 2k for land and 2k for build.
I believe what would happen is that my total deposit instead of being 20%, would be lower due to the valuation, causing me to get LMI which is not ideal but it's not the end of the world I guess.
Re: valuation too low4
Nov 09, 2018 8:40 am
I was in same situation in July this year. Our valuation came back 100k less. We were with Bank Australia then. We contacted the Broker and they got the valuation from other firm/person and got it all sorted.
Saying that, market isn't great as well. Are you with broker? If yes then ask them try other firm/person for valuation and if possible try changing broker as well.
Re: valuation too low5
Nov 14, 2018 12:51 am
It is sad that you had already paid deposit. If yoi had not paid maybe you would had have better situation now
i am from ukraine, glad to be here, i would like to meet smart people with design knowledges
Sign in or Join to reply to this Topic
MelosFinal Valuation - what happens if it isn't good enough?Final Valuation - what happens if it isn't good enough?
Hey Amy, I can’t comment directly as our house is still being built. But about 10 yrs ago we refinanced a unit in order to get another loan and we had been given some…
Trent SmithValuation in Angle Vale, SAValuation in Angle Vale, SA
Where abouts in Angle Vale are you building? I am building in Angle Vale with Dechellis, building a house same living size for around 385k, it is 346square with garage…
firstHome21Akuna Vista Land ValuationAkuna Vista Land Valuation
Most agents get the land evaluated from the bank of their choice and if the report is good, they proceed with the loan. This way we avoid making unnecessary credit check.…
raptor19Valuation shortfall Construction LoanValuation shortfall Construction Loan
Rex, you can but be mindful the bank has the final word and the valuers don’t like being challenged. And ultimately the banks won’t use a valuation from a valuer who…