Browse Forums Building A New House 1 Mar 07, 2015 6:55 pm Has anybody had a bank undervalue the total value of a house and land package prior to building at well below the total cost to build? We have spent 6months designing and fine tuning a house design to put on a block we have owned since April. Only to get all the way to a contract to submit to the bank. And the local independent evaluators say that the market is so low at the moment that a newly built house would not be liquid-able when it's completed for the cost of the build. It's no mansion or special treatment house. Just a quality 280sqm 4bed home on a 950sqm block. Has anybody overcome a similar scenario. Damo's ******* boat building repair centre. Re: Bank evaluation puts our build price $90k over market va 2Mar 07, 2015 7:07 pm You say you've been fine tuning it for a while? Is it different to most homes in the area? I worked in lending a few years ago and we had a customer who had taken out 2 bedrooms, added a gym with its own bathroom, change room etc it ended up she massively over capitalised and the bank said no - we weren't the first bank she'd tried either. Have you been able to get a copy of the bank's valuation to see why they're valuing it low? Our Custom Dale Alcock build in the Village at Wellard https://forum.homeone.com.au/viewtopic.php?f=31&t=78620 Re: Bank evaluation puts our build price $90k over market va 3Mar 07, 2015 7:10 pm Hey rip it up, does it really matter? I mean can you get the loan and you don't need loan insurance? Banks are conservative by nature, they just want their money back if it all goes astray. Up to you but I would build, get it valued at the end and see what happens. Of course it does depend on what you plan to do with the house, live it for a long time, quick resell, this will have to be factored in, as well as the quality/extras of the build. Personally never been fussed by a bank valuation and this is a third build. Custom build Northern NSW viewtopic.php?f=31&t=72217 Re: Bank evaluation puts our build price $90k over market va 4Mar 07, 2015 8:01 pm I can not afford the 120k gap from total build cost to the banks evaluation of the final product. The final tuning is just simply getting all the inclusions to be priced out with exact brands etc. Getting a contract price that's all inclusive. Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ Our local market has been flooded with 100's of out of town project builders putting up species everywhere. Which is dragging the market down. Some of these are 2year old and never lived in. Selling them at well below build cost. Southern investment builders have wrecked the market. I am having to consider scrapping my personal designed house and downsize to a speccy at 235sqm just to comform to the banks maximum value allowed on my block. Damo's ******* boat building repair centre. Hi everyone, building a duplex with my brother and we will then subdivide the land with council. Each duplex will be 360m2. The frontage of the house is West facing and… 0 3400 The last home I lived in didn't have a pool and when i went to sell it the agents were not happy, even telling me to put one in to sell the place. The agents weren't happy… 2 4283 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 17887 |