Atherstone land valuation " land undervalued"

Hi everyone

I am new to this forum heard from a friend of mine . I paid 5% on a titled land for 282k 448SQm block in Atherstone (Melton South), My broker did valuations with CBA and westpac both undervalued the land for 255k . Initial negotiation was negative from the developer and the contract is "subject to finance" until mid jan 2020. i am thinking to negotiate one more time to see if i can get a contract rebate. has anyone been in a similar situation ? Any advice on my current situation will be highly appreciated.
Thanks
Vinnie

We had trouble when buying our first house. First you need to determine if the real value yourself, don’t assume the low valuations are wrong. You can ask how they arrived at that figure and work on a sensible way forward. Our house was 1km from Brisbane CBD and 200 meters from the south east freeway, the valuer looked at recently sold houses 200m from the freeway but 10km from the CBD, as this was in their opinion the best recently sold comparable property, I even though the post code was not the same. Once we understood this we went to another bank and told them the scenario and magic happened.

Thanks for the response, appreciate it.

Banks always under value. They will always value for a price they are guarantee to get if something was to happen and needed to sell it

Hi Vinnie, how did you go? Were you able to get rebate from the developer, or went with another bank? I am in same situation, and would like to know the end result. Thanks

Hi sorry for delayed response.

Yes we asked for a contract reduction and the developer agreed to cover 50% of the short fall . We had to go with Westpac , also we did valuation with all big 4s all of them undervalued our land ..

Try to negotiate with developer , it took six weeks for them to make a decision.