Browse Forums Home Finance 1 Aug 05, 2009 9:51 am We have conditional preapproval for $470 000 (conditional: based on the valuation of the property we want to buy and our current house.) There is an auction this weekend on a property we want to buy and our auction limit is around $330 000. The price is really only land value as the 2 houses on it are knockdowns. Problem is our broker doesn't think we can get through the full bank approval by friday. She is advising us not to bid (too risky to lose deposit if finance doesn't come through) and thinks the property will be passed in and we can negiotate with the bank (liquation sale) later once we are confident we have have the $. Which is all good, but i have a feeling there will be bidders and even if it gets passed in, first negoitations will be with the highest bidder... we dont want to miss out! So is it risky to bid on the day if we have to??? We have the 10% deposit in cash and $$ backup via a family member if the bank valuation of the property doesn't match the auction price and we have to cover a bit. Whats the chances of the bank refusing to lend you anything if they dont like the property, even with preapproval in place?? Has this happened to anyone?? Thanks Re: Is this too risky?? 2Aug 05, 2009 12:17 pm I am sure there will be a definitive answer to your question. Though in my experience, A bank will value a property as a liability less costs to remove them if, as you say the houses are knockdowns. It is the same for incomplete homes and only has land value. As I said this is in my experience only. Onc_Artisan Where you are coming from is where you are going to... Re: Is this too risky?? **UPDATED** 3Aug 09, 2009 7:56 pm Well we went today to the auction and despite having the plan not to bid as our unconditional finance had still not come through.... WE BID AND WON! With the reserve only being $250K it was too good of an opportunity to miss. We won it at $300K which was 30K less than our max. Now fingers cross, we can loan the money............... IM STRESSED!! Re: Is this too risky?? 4Aug 09, 2009 9:09 pm banks don't value in person for new buys, so they won't know its a knock down. Easy peasy! A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ bank valuation 5Aug 12, 2009 12:43 am Annietom banks don't value in person for new buys This is wrong! What banks do to satisfy their lending criteria depends on the assessed risk, full valuation (in which a panel valuer undertakes a full inspection of the property) is often a requirement. Re: Is this too risky?? 7Aug 12, 2009 1:17 pm Helyn When we sold our old house a valuer came to inspect the house in person on behalf of the buyer's lending insitution. Same here... we have to let the bank valuer to come and inspect our house for the buyer Blog - http://clageonewhouse.blogspot.com/ Building Thread - viewtopic.php?f=31&t=10886&hilit=milan I am in, with my husband and my beautiful bunny Re: Is this too risky?? 9Aug 21, 2009 2:11 pm Helyn When we sold our old house a valuer came to inspect the house in person on behalf of the buyer's lending insitution. Well, did you offer any tea and biscuits to the valuer? Re: Is this too risky?? 10Aug 21, 2009 3:14 pm hehehe - actually we offerred to let him see a lot more than he wanted to (of the house, I mean!!! ) but he saw the front and back yards which were neat established gardens and said if the inside is as well looked after as the garden I know it will be fine and only looked briefly inside I enjoy gardening and took that as a lovely compliment Also it was a private sale and we were selling to a friend of the family, bit under market value but at settlement date at time of our choosing (depending on when new house ready) and no real estate agents fees so win-win situation - but of course made valuation easy, it was valued at over the asking price - I didnt have to bribe valuer with my home-made cooking (just as well !! ) It will be neat but you won't have much freeboard. At least they are not weep holes. Are you in a high intensity rainfall region? The regulatory slope is only required… 3 8804 Firstly, if your house is still under builder's warranty (10 years in Victoria) you should have no need to crawl into roof space but let the builder handle it, unless you… 3 5913 Not sure if that works? I was told the issue is the headspace clearance requirement on step 4. My builder is proposing shifting the beam 310mm towards the kitchen...I'm… 2 3086 |