Hi Staztrue,
did your new/second valuation come back right? since we are experiencing the exact same situation here. our bank also ordered a second valuation as the first valuer said his initial valuation still stands after disputing. Thanks.
Browse Forums Building A New House Re: Bank Valuation Issue 21Jan 08, 2014 11:38 am Hi Staztrue, did your new/second valuation come back right? since we are experiencing the exact same situation here. our bank also ordered a second valuation as the first valuer said his initial valuation still stands after disputing. Thanks. Re: Bank Valuation Issue 22Jan 08, 2014 12:16 pm yep our second evaulation came in at over our value but they can only give you your contract value, so I was over the moon about that! All the best with it, I know how horrible the feeling is of having such a horrid evaluation! Re: Bank Valuation Issue 23Jan 08, 2014 12:22 pm RON3029 Hi Casabonka, any updates yet ? we disputed it & waiting for the final outcome. Yep, we disputed, and the valuer didnt budge, even after providing him with an RP Data report which clearly shows the value should be a bit higher. We can scrape through if we empty our savings, but are now trying through a different bank to see if we can get a better outcome! ahh the fun! You can call me Chris! Altona 4bd Media Ent by Allworth @ Bonnells Bay NSW Check out my attempt at a blog! http://bonnellsbayaltona.blogspot.com.au/ Re: Bank Valuation Issue 24Jan 08, 2014 1:20 pm casabonka RON3029 Hi Casabonka, any updates yet ? we disputed it & waiting for the final outcome. Yep, we disputed, and the valuer didnt budge, even after providing him with an RP Data report which clearly shows the value should be a bit higher. We can scrape through if we empty our savings, but are now trying through a different bank to see if we can get a better outcome! ahh the fun! Same issue we had with our first valuer! It seems to be once they make a decision they wont budge! Our valuer actually told our mortgage broker that he had no idea on the suburbs in my area and therefore could have been worth the money but his initial valuation stood! CBA said they will cease to use this guy as he kept on under valuating properties! Re: Bank Valuation Issue 25Jan 08, 2014 1:41 pm stayxtrue casabonka RON3029 Hi Casabonka, any updates yet ? we disputed it & waiting for the final outcome. Yep, we disputed, and the valuer didnt budge, even after providing him with an RP Data report which clearly shows the value should be a bit higher. We can scrape through if we empty our savings, but are now trying through a different bank to see if we can get a better outcome! ahh the fun! Same issue we had with our first valuer! It seems to be once they make a decision they wont budge! Our valuer actually told our mortgage broker that he had no idea on the suburbs in my area and therefore could have been worth the money but his initial valuation stood! CBA said they will cease to use this guy as he kept on under valuating properties![/quote Yes, the bank should get rid off this kinda Valuers straightway who doesn't take anything in consideration and value the land/property only by book. The most frustrating thing is bank does the valuation after signing the construction contract(for construction loan/house & land) when everything is ready to go and you had a pre-approval from the bank too. they do the land valuation right in the first place and again do it different when they do the valuation for land & construction together. doesn't make sense most of the cases. Re: Bank Valuation Issue 26Jan 08, 2014 1:44 pm I know what you mean, we had the issue where our building contracts were delayed so we had to delay settlement, once it all came through and the bank performed their valuation for land and building contract we were fine. I just dont understand how some valuers can be so arrogant! well hopefully you have some good news soon Re: Bank Valuation Issue 28Jan 08, 2014 6:33 pm Our knock-down-rebuild valuation (ANZ) was probably over by about $300k-$400k! It seems strange to me that they're so spotty. Or do new builds on new blocks sail a lot closer to the wind, in terms of cost:value ratio? Re: Bank Valuation Issue 29Jan 08, 2014 7:05 pm Just a quick note... NAB uses RPData for valuations Australia wide. Building a Madison 45 with Porter Davis Madison 45 Blog (Send me a PM with your email address to be added) Re: Bank Valuation Issue 30Jan 08, 2014 8:57 pm Forg Our knock-down-rebuild valuation (ANZ) was probably over by about $300k-$400k! It seems strange to me that they're so spotty. Or do new builds on new blocks sail a lot closer to the wind, in terms of cost:value ratio? The ones in the larger new estates probably are much closer to the bone - it's harder to judge the value because there's not a lot of historical data, or much information about the future development around etc and less resources and social / community benefits developed yet. Also many of the new estates are still empty so there's a long delay until the potential value of the house can be realised (because a lot of people won't like living in the new estate until it's full and this affects house prices and therefore valuations). The bank has to get a valuation for what it could be sold for the day after you get the keys (in case you never make a payment) so that's the way they price it - what's it worth in a turn key condition on the day after handover? (Ie before all your improvements etc.) In an established neighbourhood they can judge the rates better, there are established social/community benefits (like schools with reputations etc that are generally good, or people wanting to live close to friends/family etc) and even simple stuff like all the neighbours have nice grown gardens affects property prices. The older suburbs usually experience less mortgage stress too - it's unlikely your neighbours are struggling to pay their mortgage and that means they can afford to fix things up etc improving their values thus improving yours. Does all that make sense? I'm trying to type this while ignoring Ben and Holly's Little Kingdom Re: Bank Valuation Issue 31Jan 09, 2014 2:33 pm Guess what!! We have just been informed by the bank that our second valuation came alright! Bank is happy to process the loan now. No shortfall. All good. so,we’re so excited now Thanks everyone for all the info & input here. Just a recap, we applied and got a loan for a block of land in Allura estate without any valuation issue. Then within one month, we applied for building loan. This time the bank got a second valuer (different than our land valuer) and he/she undervalued together the land and building appox $60k. Basically, the valuer undervalued the land pretty much by $50k. !!!! Needless to say, we disputed that outcome, presented them with the rp data, real-estate data etc. however the valuer showed his arrogance and was stand by what he/she said in the first place. Then, the bank decided to get a second valuation done altogether again by the first valuer (who did our land valuation) and done that in 3-5 days. And now we got it all make sense and seems to be right. All the best. Re: Bank Valuation Issue 32Jan 09, 2014 2:46 pm We had valuation problems too. When you build in a new estate, where most people are owner builders there is very little sales data to go on. Our valuation was $40k down. There was only a handful of sales in our area for the previous year, most of them were only 3BR on smaller blocks than ours. What I find most rediculous is when someone buys a house at Auction and then gets undervalued. The market has spoken, the market value was clearly at WORST one bid below the winning bid, unless there were the only bidder. Re: Bank Valuation Issue 33Jan 10, 2014 7:43 am RON3029 Guess what!! We have just been informed by the bank that our second valuation came alright! Bank is happy to process the loan now. No shortfall. All good. so,we’re so excited now Thanks everyone for all the info & input here. Just a recap, we applied and got a loan for a block of land in Allura estate without any valuation issue. Then within one month, we applied for building loan. This time the bank got a second valuer (different than our land valuer) and he/she undervalued together the land and building appox $60k. Basically, the valuer undervalued the land pretty much by $50k. !!!! Needless to say, we disputed that outcome, presented them with the rp data, real-estate data etc. however the valuer showed his arrogance and was stand by what he/she said in the first place. Then, the bank decided to get a second valuation done altogether again by the first valuer (who did our land valuation) and done that in 3-5 days. And now we got it all make sense and seems to be right. All the best. Thats awesome news!! Sounds like your bank did the right thing!! Now its all exciting from here on! Re: Bank Valuation Issue 34Jan 10, 2014 8:17 am casabonka RON3029 Hi Casabonka, any updates yet ? we disputed it & waiting for the final outcome. Yep, we disputed, and the valuer didnt budge, even after providing him with an RP Data report which clearly shows the value should be a bit higher. We can scrape through if we empty our savings, but are now trying through a different bank to see if we can get a better outcome! ahh the fun! Good luck casabonka, we got the go ahead from our bank this week but they would not include fencing, retaining, blinds in the loan which is ok by me. That will come out of our own savings. Built the Avoca @ Aquilo, Bonnells Bay http://avocaonaquilo.blogspot.com.au/ 12/10/13 $3K Deposit 31/10/13 Consolidated Tender 11/11/13 Colour Selection 18/02/14 DA approved 19/02/14 Electricals Re: Bank Valuation Issue 35Jan 10, 2014 11:26 am Jasper 26 casabonka RON3029 Hi Casabonka, any updates yet ? we disputed it & waiting for the final outcome. Yep, we disputed, and the valuer didnt budge, even after providing him with an RP Data report which clearly shows the value should be a bit higher. We can scrape through if we empty our savings, but are now trying through a different bank to see if we can get a better outcome! ahh the fun! Good luck casabonka, we got the go ahead from our bank this week but they would not include fencing, retaining, blinds in the loan which is ok by me. That will come out of our own savings. Yeah all the same items that ours wouldnt cover! We will re-name our street bedsheet blind street! We have been approved through our original but still trying through the second to see if they will value it higher. Here is hoping! You can call me Chris! Altona 4bd Media Ent by Allworth @ Bonnells Bay NSW Check out my attempt at a blog! http://bonnellsbayaltona.blogspot.com.au/ Re: Bank Valuation Issue 36Jan 10, 2014 3:22 pm according to my broker, disputing a valuation gets a success rate of 10%, which happened to me... twice! i changed banks hoping they use a different valuer and both came back higher. Re: Bank Valuation Issue 37Jan 14, 2014 7:23 pm I was told that when you are buying a block of land or a land and building contract that they can only value to your contract value, they won't go higher, however once it is finished you can get it re-evaluated and draw back on your equity. But that's how my broker explained it to me How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11915 thanks Chippy, i hope they have applied sealer but i am doubt to be honest, so i am gonna do this job after handover. 8 16268 |