Browse Forums Home Finance 1 Mar 25, 2021 5:27 am Our valuation for the construction component of our loan has come in at $485,000 compared to a $597,358 construction cost. This in the eyes of Adelaide Bank (AB) means there is a variance of 22.58% AB have a policy have a policy that if it is more than 15% as follows ”>15% - Will be considered on an exception basis only. In addition to the applicant(s) written acknowledgement, an acceptable reason for the variance must also be provided.” Has anyone been in this situation before? Thanks in advance. Re: Valuation shortfall on Contruction component of our loan 2Mar 25, 2021 8:30 am Yep, with Adelaide! Its to remove them from liability if you chose to (and are able to) proceed and also alert you to the fact they think the builder is charging too much.
do you have a good broker? Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation shortfall on Contruction component of our loan 3Mar 25, 2021 9:31 am Hey Kevinp8590 Welcome to the forum Have you firmed up all the build prices, more importantly the engineering eg Big Ticket money pit item$ or is there more $ticker $hock increases to come? WA tradies are hot property as home building goes through the roof Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Valuation shortfall on Contruction component of our loan 4Mar 25, 2021 11:19 am Hi there mate, thanks kindly for the welcome. We have a fixed price contract which we are happy with. Funnily enough, it was the cheapest of the 4 quotes we obtained. Re: Valuation shortfall on Contruction component of our loan 5Mar 25, 2021 11:20 am We have an excellent broker and have 100% faith in him. We are just going to write the letter and include our justification of the difference in variance which I hope they accept. Re: Valuation shortfall on Contruction component of our loan 6Mar 25, 2021 2:54 pm ![]() We have an excellent broker and have 100% faith in him. We are just going to write the letter and include our justification of the difference in variance which I hope they accept. Love this, good work!! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation shortfall on Contruction component of our loan 7Mar 25, 2021 4:05 pm ![]() Hi there mate, thanks kindly for the welcome. We have a fixed price contract which we are happy with. Funnily enough, it was the cheapest of the 4 quotes we obtained. Just be mindful that contract costs can be varied in extenuating circumstances, ie. before the build starts by builders variation. It's also up to you whether you accept it. Once the build starts all bets are off....goodluck Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Valuation shortfall on Contruction component of our loan 8Mar 25, 2021 4:11 pm ![]() ![]() Hi there mate, thanks kindly for the welcome. We have a fixed price contract which we are happy with. Funnily enough, it was the cheapest of the 4 quotes we obtained. Just be mindful that contract costs can be varied in extenuating circumstances, ie. before the build starts by builders variation. It's also up to you whether you accept it. Once the build starts all bets are off....goodluck Thanks for the heads up mate. We have a very good relationship with our builder, so that gives even greater comfort. I second taking your plans elsewhere. They're yours (unless you ended up in one of those cheaper arrangements where you don't own the rights and the build will be tendered… 2 33827 Hi there, I hope someone can give me some insight into a (very lucky) situation I'm dealing with. My Mum was gifted property by my grandfather after he passed. My… 0 8476 ![]() Can someone pls help with advice. My husband and I live in NSW and own a land in Tasmania. We were pre-approved to build a home( owner occupier). My husband is working… 0 12372 |