Browse Forums Home Finance 1 Apr 01, 2009 9:45 am As my natural worry-wart self, and the planning personality I have, after seeing posts where the valuation of the land/house came in short, it's made me worried that when our house gets valued, it will come in short too. (I'm sure there are others on this forum too who are feeling the same) So I'd like to know if you valuation came in short, what did you do? Did you go to another bank? Or did you get the money to pay the difference in the loan? If so, how (eg. personal loan, used up savings, low rate credit card, etc)? Did you cut back on details on the house? Did you fit within the 45 day grace period? Is there any information you can give us to help home builders to prepare for the house or land (or both) being undervalued? Even if you post the link of your thread about this in here, that would be great so it's all in one spot for people hunting around on this topic. Re: Valuations coming in short - what did you do? 2Apr 01, 2009 9:53 am I agree that this is a worry for alot of people on this forum, especially those that are first home owners like myself! We havent gone for our finances yet, but I'm also like you and like to plan ahead, think of all the things that COULD go wrong. From what I've read on other threads about this particular issue, alot of people either: *Go through another bank, hoping for a higher value of house/land *Take out a personal loan to cover the costs, then using the equity in their house later on to pay it back *Using their credit card *Borrowing money from family/friends, but this can get a little tricky. I dont think many have actually decreased the spending of their house to cover the shortfalls. Idiots are fun, that's why there is one in every village! - Dr. House - Re: Valuations coming in short - what did you do? 3Apr 01, 2009 11:44 am I'm trying not to worry about it for now as I am waiting for valuation to come back! I honestly don't know what I would do as I am building a pretty small stock standard house as it is. My curtains and furniture money would probably get used first and then a credit card I imagine. 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: Valuations coming in short - what did you do? 5Apr 09, 2009 6:36 pm Second val came in 25k short. I asked the bank to do it again. They got compariative sales figures for other properties and soon realised the val was totally wrong. So they organised for someone else to do it, and it passed! I was prepared to pay a 5k-10k shortfall, even got an extension on my credit card limit! (Bad I know, but I can drop it back now.). Blog: http://house.jay.net.au/ Re: Valuations coming in short - what did you do? 6Apr 09, 2009 8:06 pm jaytyn1 Second val came in 25k short. I asked the bank to do it again. They got compariative sales figures for other properties and soon realised the val was totally wrong. So they organised for someone else to do it, and it passed! I was prepared to pay a 5k-10k shortfall, even got an extension on my credit card limit! (Bad I know, but I can drop it back now.). Are you able to just ask the bank to do it again? Do you have to give evidence or something to warrant another evaluation? Idiots are fun, that's why there is one in every village! - Dr. House - Re: Valuations coming in short - what did you do? 7Apr 09, 2009 8:16 pm wonderland jaytyn1 Second val came in 25k short. I asked the bank to do it again. They got compariative sales figures for other properties and soon realised the val was totally wrong. So they organised for someone else to do it, and it passed! I was prepared to pay a 5k-10k shortfall, even got an extension on my credit card limit! (Bad I know, but I can drop it back now.). Are you able to just ask the bank to do it again? Do you have to give evidence or something to warrant another evaluation? No, they wouldn't do it again upon my request. I got the agent to send them heaps of data for comparitive sales. They then formed the opinion that their first valuation was totally off the mark, so they got someone else to do a valuation, which worked out OK! Blog: http://house.jay.net.au/ Re: Valuations coming in short - what did you do? 8Apr 09, 2009 9:07 pm jaytyn1 wonderland jaytyn1 Second val came in 25k short. I asked the bank to do it again. They got compariative sales figures for other properties and soon realised the val was totally wrong. So they organised for someone else to do it, and it passed! I was prepared to pay a 5k-10k shortfall, even got an extension on my credit card limit! (Bad I know, but I can drop it back now.). Are you able to just ask the bank to do it again? Do you have to give evidence or something to warrant another evaluation? No, they wouldn't do it again upon my request. I got the agent to send them heaps of data for comparitive sales. They then formed the opinion that their first valuation was totally off the mark, so they got someone else to do a valuation, which worked out OK! Wow that's great news! Just knowing that if you do get enough facts to back you up, you can actually dispute it. Rather than just bear it! Good on you! Idiots are fun, that's why there is one in every village! - Dr. House - Re: Valuations coming in short - what did you do? 9Apr 09, 2009 10:08 pm I'm going to be using my savings that I was going to use for blinds 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: Valuations coming in short - what did you do? 10Apr 09, 2009 10:33 pm lisanne I'm going to be using my savings that I was going to use for blinds i read about your short evaluation . But at least its not as bad as some other! I think you just gota do what you need to do to come up with the money. Like you Lisanne, if i need to use my curtain money or landscape money, I will use it, just to get the house built. All the other stuff, you can save up for later. I just feel for those who dont have the spare money to cover the shortfall, and have to resort to using their credit card or going for another personal loan. But like i said, you have to do what you have to do! Idiots are fun, that's why there is one in every village! - Dr. House - Re: Valuations coming in short - what did you do? 11Apr 09, 2009 10:36 pm yeah we did a personal loan for a $20K shortfall, but we'll get over it... some day! Annie A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: Valuations coming in short - what did you do? 12Apr 09, 2009 10:48 pm Ours came 5k short. I guess its not that bad compared to some others on the forum. We will just pay from the savings for our vacation. Land Settled 27/04/09. Site Started 30/4/09. Slab poured 21/5/09. Frame up 27/5/09. Building thread : viewtopic.php?f=31&t=15699 Re: Valuations coming in short - what did you do? 13Apr 10, 2009 12:16 am We are disputing our valuation, in the hope that it will be increased just enough ($5k) so that we can still proceed with our build immediately. If the valuer doesn't budge, then I really don't want to have to borrow money (credit card/personal loan) to cover the shortfall. I have got a couple of options in my mind, but if they don't work out then l guess we'll just have to delay the build until we save up the difference. Re: Valuations coming in short - what did you do? 14Apr 10, 2009 11:10 am thorney We are disputing our valuation, in the hope that it will be increased just enough ($5k) so that we can still proceed with our build immediately. If the valuer doesn't budge, then I really don't want to have to borrow money (credit card/personal loan) to cover the shortfall. I have got a couple of options in my mind, but if they don't work out then l guess we'll just have to delay the build until we save up the difference. If I was borrowing 95% instead of 97% then it might have worked out ok for me, but I chose to keep my money in my savings so that I could do things like blinds and landscaping etc sooner rather than later 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: Valuations coming in short - what did you do? 15Apr 15, 2009 11:51 am How are valuations done? For example we're looking to build, land is 90k total building is 215k so 305k all up, we're borrowing 285k, so if the valuation comes in at 285k or more we're good? Ben Re: Valuations coming in short - what did you do? 16Apr 15, 2009 12:10 pm Benji How are valuations done? For example we're looking to build, land is 90k total building is 215k so 305k all up, we're borrowing 285k, so if the valuation comes in at 285k or more we're good? Ben It really depends on what the bank is willing to loan you max. I know with CBA we were told we could borrow 97% max of the valuation amount. So if you were buying a house and land for 305k all up. And the valuation came in at 285k, you would be able to borrow 97% of 285k which would be $276450. So that means you would need to come up with the shortfall amount $8550. Plus any additional LMI costs involved. i.e. if you went from 93% borrowing to 97% borrowing it'd be an additional lmi charge. Nav Re: Valuations coming in short - what did you do? 17Apr 15, 2009 1:06 pm Nav It really depends on what the bank is willing to loan you max. I know with CBA we were told we could borrow 97% max of the valuation amount. So if you were buying a house and land for 305k all up. And the valuation came in at 285k, you would be able to borrow 97% of 285k which would be $276450. So that means you would need to come up with the shortfall amount $8550. Plus any additional LMI costs involved. i.e. if you went from 93% borrowing to 97% borrowing it'd be an additional lmi charge. Nav Nav, did you settle your land? It's not as easy with the ratios any more. Borrowers don't (except for a few lenders) have the luxury of increasing the LVR if the valuation is short. A lot of people are putting their construction plans on hold because of low valuations. Re: Valuations coming in short - what did you do? 18Apr 15, 2009 1:07 pm When my valuation came in short I ordered myself a 1.1litre jug of margarita. Building with PD - Regent 23 Cascades on Clyde Estate HomeOne Building Thread - PCI Completed - 28th August. Handover - 11th September. Re: Valuations coming in short - what did you do? 19Apr 15, 2009 1:09 pm erinleigh When my valuation came in short I ordered myself a 1.1litre jug of margarita. Did it help? Re: Valuations coming in short - what did you do? 20Apr 15, 2009 1:10 pm Our came in at about $50k under... had to pull the pin on all the contracts... $50k was way too much for us to absorb with our finances. Looked at the properties the valuer used to base it off all were reasonably comparable - any upgrade you add is rarely taken into account in the valuation. Disputing the valuation would maybe at best got another $20k on the valuation which still would not have been enough Get some long brass machine screws and bolt right through the gate and put brass acorn nuts and washers on the other side. It will never come off 1 9070 Chemtrails, only the most disproven conspiracy theory in the history of conspiracy theories. You've gone in the deep end, drowned, and are now a mindless bloated… 5 86550 |