Browse Forums Building A New House 1 Feb 16, 2009 9:35 pm hi there, the broker recieved the valuation for my block today, came in at $12,000.00 less than the contract price now it's just a waiting game to see what happens between the developer & the bank, just wondering if this has happened to anyone else and what happened next? 2014 - Prepping to build the Soho 4 with Plantation homes, industrial style 2009 - Built the Brampton with Coral Homes viewtopic.php?f=31&t=15399&start=280 Re: valuation less than contract price...help! 2Feb 17, 2009 7:24 am I'm not in Qld - but my valuation came back $240k lower than purchase price
There are a few threads on it in the forum - Home Finance section. After 4 years - we're in! Re: valuation less than contract price...help! 3Feb 17, 2009 3:30 pm stonecutter1309 I'm not in Qld - but my valuation came back $240k lower than purchase price There are a few threads on it in the forum - Home Finance section. $240k lower than purchase price?!?!? my god!! then what happened?!?!? I'd be shock to know even if it's $30k less!! but $240k?!?!? Re: valuation less than contract price...help! 4Feb 17, 2009 4:04 pm arent all land valuations lower than the contract price?
im no expert but my guess is that the valuation cost might be what the council charge you as the unimproved value for your rates? Blog - http://snakedr.blogspot.com/ Build Thread - viewtopic.php?f=31&t=12084&p=307406#p307406 Status - PCI 15/10. Things nearly done. Re: valuation less than contract price...help! 5Feb 17, 2009 9:56 pm not sure, the problem is the bank won't lend more than they think the property is worth (i work for bendigo...) as they would not have enough security for the loan, unless the developer convinces cba to revalue the property (which they are trying to) it's bye bye block! 2014 - Prepping to build the Soho 4 with Plantation homes, industrial style 2009 - Built the Brampton with Coral Homes viewtopic.php?f=31&t=15399&start=280 Re: valuation less than contract price...help! 6Feb 17, 2009 11:09 pm If its $12k under the contract price, does that mean you will have to fork out that extra $12k to cover the loan?
Are you completely stretched? Idiots are fun, that's why there is one in every village! - Dr. House - Re: valuation less than contract price...help! 7Feb 18, 2009 8:26 am $12k is allot to come up with!
One option is that if your getting the FHOG directly and its going to pay for the duty and such on the land, would you have enough saved + spare from FHOG to cover the 12k? You would need that 12k to sign to get the FHOG, but perhaps you can borrow it short term from someone you know well? Always an option to consider atleast. Re: valuation less than contract price...help! 8Feb 18, 2009 9:23 am Problem is that to get the FHOG you have to build - ie the FHOG is normally released at the first progress payment on construction (normally slab being poured). So FHOG won't apply if it is only a land purchase.
Is the developer offering any rebates? They can play havoc with valuations as well. Some things are worth waiting for. Re: valuation less than contract price...help! 9Feb 18, 2009 9:32 am billdsl arent all land valuations lower than the contract price? im no expert but my guess is that the valuation cost might be what the council charge you as the unimproved value for your rates? Land valuation for mortgage purposes is generally different to land valuation for rates purposes. The bank valuers use surrounding areas and amenities to try and come up with a valuation so it can vary greatly from bank to bank. What is uncommon is the bank valuing the block of land above purchase price. Ours was valued spot on cost. Unfortunately, if you're just purchasing the land for now then the FHOG will not save you from having to pay the difference between land cost and valuation. Try a couple of different banks and see what they come up with. Also ask the bank to find out how the valuer came up with the price for verification. Stevep79 & Principessa Finished building Wisdom Homes Impression 33mkII in The Ponds, Sydney http://lilypadintheponds.blogspot.com Re: valuation less than contract price...help! 10Feb 18, 2009 1:20 pm house & land pkge, problem is that i am not willing to pay that much more than the property is actually worth - no rebates, but the developer is having a tanty cuz the valuer only looked at 1 block (with a 7 m drop! ) that sold over 6 months ago for $116,000.00, as opposed to looking at the more recent blocks that have settled and sold for between $135,000.00 & $150,000.00, all blocks of comparable size and quality to mine, the developer reckons the valuer hasn't even looked at the block...they have sent correspondence to cba detailing recent settlements in the hope that they will revalue... i don't know how much luck we're going to have though... pucrhase price for my block is $142,000.00, val came in at $130,000.00 2014 - Prepping to build the Soho 4 with Plantation homes, industrial style 2009 - Built the Brampton with Coral Homes viewtopic.php?f=31&t=15399&start=280 Re: valuation less than contract price...help! 11Feb 18, 2009 1:29 pm If there is evidence of blocks selling for more and it's obvious the valuer hasn't done a good job, banks have been known to send out a different valuer and also take the information you've provided into account.
Luckily for me, I know that at least the St George valuer went out to the block...he had to call me to get directions as the street names aren't on whereis and therefore not on his GPS When valuers go out to the blocks, they have a look at close by amenities and those sorts of things as well. Stevep79 & Principessa Finished building Wisdom Homes Impression 33mkII in The Ponds, Sydney http://lilypadintheponds.blogspot.com Re: valuation less than contract price...help! 12Feb 18, 2009 1:48 pm Building with Coral 2009 , but the developer is having a tanty cuz the valuer only looked at 1 block (with a 7 m drop! ) that sold over 6 months ago for $116,000.00, Did they buy a block of land or a cliff! Sounds like you have good grounds for a re-valuation Re: valuation less than contract price...help! 13Feb 18, 2009 1:52 pm ha ha that's the funny thing - dixon homes bought it!!! fingers crossed anyways, it has taken so long to find the perfect block in the perfect place not happy jan! 2014 - Prepping to build the Soho 4 with Plantation homes, industrial style 2009 - Built the Brampton with Coral Homes viewtopic.php?f=31&t=15399&start=280 Re: valuation less than contract price...help! 14Feb 18, 2009 8:48 pm Our initial valuation came in $50,000 less than the combined land+construction cost. We eventually managed to get a revaluation done which came in at $25k less, and we had to find the other $25k. Bloody nightmare, but that's what you get for being the first house built on the first lot in a brand-new estate. The valuer had absolutely nothing else to compare us with (apparently). Re: valuation less than contract price...help! 15Feb 18, 2009 9:19 pm that's the weird thing - there is heaps of new comparable data, the valuer just chose to look at the cheapest block that sold in the estate months and months ago, as opposed to the more expensive blocks that sold more recently.... very strange 2014 - Prepping to build the Soho 4 with Plantation homes, industrial style 2009 - Built the Brampton with Coral Homes viewtopic.php?f=31&t=15399&start=280 Re: valuation less than contract price...help! 16Feb 18, 2009 9:24 pm Building with Coral 2009 that's the weird thing - there is heaps of new comparable data, the valuer just chose to look at the cheapest block that sold in the estate months and months ago, as opposed to the more expensive blocks that sold more recently.... very strange Depends on where they get their sales figures from. If they use onthehouse.com.au to get it, there tends to be a 2-3 month lag time before the sales are registered on there. Stevep79 & Principessa Finished building Wisdom Homes Impression 33mkII in The Ponds, Sydney http://lilypadintheponds.blogspot.com Re: valuation less than contract price...help! 17Feb 18, 2009 9:28 pm that's what the developer said just a pain in the butt and now i just have to wait and see what happens...thanks for your help steve 2014 - Prepping to build the Soho 4 with Plantation homes, industrial style 2009 - Built the Brampton with Coral Homes viewtopic.php?f=31&t=15399&start=280 Re: valuation less than contract price...help! 18Feb 18, 2009 9:36 pm Djelibeybi but that's what you get for being the first house built on the first lot in a brand-new estate. The valuer had absolutely nothing else to compare us with (apparently). Hmm, l'm worried about what our valuation will be too. It appears that we will be the first home in long time that will go up on our side of the block. There is a corner house up the top of the hill (been there well over a year now) and new homes built recently further away over the hill, though they are all tiny blocks. We also have units being built down the bottom of our street. It appears that our house will be the biggest in the area and on one of the largest blocks too....so there is nothing really comparable. The construction side l'm not really concerned about, it's the land value....but as the block was only settled 6 months ago, l assume that they will just use the purchase price.....l'm hoping so anyway!! Re: valuation less than contract price...help! 19Feb 18, 2009 9:49 pm Hrmz, it's quite scary that the banks are being very conservative, especially to new estates. I'm building in a new estate, i hope we dont get undervalued by a huge margin, or else we wouldnt know what to do!
Good luck to all Idiots are fun, that's why there is one in every village! - Dr. House - Re: valuation less than contract price...help! 20Feb 18, 2009 10:08 pm thanks wonderland, you to! 2014 - Prepping to build the Soho 4 with Plantation homes, industrial style 2009 - Built the Brampton with Coral Homes viewtopic.php?f=31&t=15399&start=280 at most it will have a short lintel which could be moved up just below the ceiling or even above. Above means you need to patch the cornice and might need to deal with… 2 61346 Thank you so much everyone. This all makes a lot of sense. I guess when you talk to a builder who butters up everything to look very polished, you get to start believing… 7 17507 So AFAIk the outcomes of the BAL ratings form part of a clause that allows them to pass these costs on to you. However the more relevant detail is how did it go from 19… 1 9142 |