Browse Forums Building A New House 1 Jul 25, 2017 7:35 pm Hi Everyone, I am in final stages of getting ready for construction and asked CBA to provide me with Valuation of complete House and unfortunately it is way under current market value. I am building in Kellyville and it is a 5 Bed house with 2 bath and car garage. I am not happy with valuation and believe it is underestimated. FYI, next door off the plan is getting sold by builder around 1.2 to 1.3 mil. Just wondering if anyone can advise the solution or had similar issue recently? Much appreciated TIA Re: Not Happy with Valuation 2Jul 25, 2017 8:08 pm It's not unusual to find banks won't provide the finance for the full cost of the build. There is some background at this link: New Build Low Valuations The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Not Happy with Valuation 3Jul 25, 2017 8:24 pm bashworth It's not unusual to find banks won't provide the finance for the full cost of the build. There is some background at this link: New Build Low Valuations Re: Not Happy with Valuation 5Jul 25, 2017 9:50 pm icat2000 You could always get your own valuation done and then whatever that comes in at present it to the bank for consideration. Were your site costs high or did you have a lot of upgrades? So you believe private valuation is acceptable by bank? Re: Not Happy with Valuation 7Jul 25, 2017 9:59 pm Is the valuation good enough to cover your mortgage? If so, I wouldn't worry about it. That is all the bank really worries about. Ours came in low compared to market value but it was fine for the purpose the valuation was done for. Re: Not Happy with Valuation 8Jul 25, 2017 10:03 pm Tamara1975 Is the valuation good enough to cover your mortgage? If so, I wouldn't worry about it. That is all the bank really worries about. Ours came in low compared to market value but it was fine for the purpose the valuation was done for. Re: Not Happy with Valuation 9Jul 25, 2017 10:05 pm Sparkie Tamara1975 Is the valuation good enough to cover your mortgage? If so, I wouldn't worry about it. That is all the bank really worries about. Ours came in low compared to market value but it was fine for the purpose the valuation was done for. Thanks. It does cover the loan bus still LMI is going to cost me. So I am trying to get better valuation to reduce that unwanted cost. I hear you. LMI is such a ridiculous rip off!! Re: Not Happy with Valuation 10Jul 26, 2017 11:30 am Sparkie Tamara1975 Is the valuation good enough to cover your mortgage? If so, I wouldn't worry about it. That is all the bank really worries about. Ours came in low compared to market value but it was fine for the purpose the valuation was done for. Thanks. It does cover the loan bus still LMI is going to cost me. So I am trying to get better valuation to reduce that unwanted cost. My limited understanding is that it is rare for banks to value it at more than what you paid for the land plus the build contract price. What it would sell for once finished doesn't seem to come into it. Even if it was considered they would be very conservative. I think you have to have had the land for a significant amount of time for it to be considered on current value rather than its contract price. I'm not an expert though. Re: Not Happy with Valuation 11Jul 31, 2017 6:19 pm Hi All No intention to hijack the thread as I have a similar question: Bought Land: 209K Building Contract: 280K Bank valuation came out at exact 489K but the catch is: Land Valued at: 239K Construction at: 250K Now the broker says land has to be settled for 90 days before we can realise the equity. So technically the valuation is 30K short. What options do I have? Any help with this will be greatly appreciated! Thanks Re: Not Happy with Valuation 12Jul 31, 2017 6:29 pm devnik0202 Hi All No intention to hijack the thread as I have a similar question: Bought Land: 209K Building Contract: 280K Bank valuation came out at exact 489K but the catch is: Land Valued at: 239K Construction at: 250K Now the broker says land has to be settled for 90 days before we can realise the equity. So technically the valuation is 30K short. What options do I have? Any help with this will be greatly appreciated! Thanks Re: Not Happy with Valuation 13Aug 01, 2017 11:46 am [/quote]Happened to me. Your broker can be help. I used land's equity to cover building costs. [/quote] Hi mate can you tell how your broker Fixed this and was your land settled for over 90 days. Re: Not Happy with Valuation 14Aug 01, 2017 11:58 am devnik0202 Hi All No intention to hijack the thread as I have a similar question: Bought Land: 209K Building Contract: 280K Bank valuation came out at exact 489K but the catch is: Land Valued at: 239K Construction at: 250K Now the broker says land has to be settled for 90 days before we can realise the equity. So technically the valuation is 30K short. What options do I have? Any help with this will be greatly appreciated! Thanks We are having the same problem. Land was valued at 220k but the house only at 260K instead of the 288K build price. From what my broker has told me, another valuation would most likely have the same results so we are paying the extra deposit and increasing our LMI from 87% to 92% Re: Not Happy with Valuation 15Aug 16, 2017 5:33 pm Valuation with the new lender: Valuation: 500 Expected Value: 530 Brokers says we are better off to go woth BOM. 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