Browse Forums Home Finance 1 Nov 25, 2009 1:36 pm For those of you who have completed your building journey or just know the answer, does the bank do a valuation before making the final payment? Building with Dennis Family Homes - Hartley 280 Location: Settlers Run, Botanic Ridge Re: Final payment question..... 2Nov 25, 2009 3:24 pm The bank will conduct an inspection/valuation of the property before final payment is made. They will not be giving money to the builder if the house is not practically completed. They should also ask the owner to inspect so they are happy with it. Built with New Generation (Summit Homes) We own land!... with a slab on it! Plus a shell of a house with stuff inside ! Re: Final payment question..... 3Nov 25, 2009 4:58 pm I have the same question (as we are fast approaching this stage) Does the bank do a valuation of the property, an independant valuer come out and re-evaluate? ie. can they change the original valuation of the property at the end if there has been no change to the specification? or is the bank inspection a "tick in the box" to ensure the house is built as described and all items in the contract docs present? Re: Final payment question..... 4Nov 25, 2009 8:52 pm Sierra or is the bank inspection a "tick in the box" to ensure the house is built as described and all items in the contract docs present? This. In fact, I was in the house when our valuer arrived. She checked the whole place to make sure that everything on the contract had been built/installed. She also checked delivery dates on the appliances. Re: Final payment question..... 5Nov 29, 2009 11:36 pm In most cases ( in fact 99.9999% of the time) banks are required to do a valuation on completion. It is a security measure to ensure that the house has been completed to the required specifications on the building contract. You can rest assured that the bank will most certainly not reveal the information to the customer unless there is adverse reason for doing so. That would mean that the builder has done a job that does not meet specifications. In answer to the other question can they value it down..... Yes, however it is rare as far as I have seen in over 15 years I have seen it twice. Re: Final payment question..... 6Nov 30, 2009 11:13 am Hey Everyone, In my experience some lenders get a full Valuation done (for their own records) most will have the valuers just go out and make sure that what was promised is what was delivered. It can be quite amazing how many times 'variations' have been made part way through between the builder and the owner without the banks involvement. I have heard final inspection reports of Air con being put in instead of rangehoods, spa baths instead of timber flooring (the flooring was just plain concrete- "Quote from the customer- We decided to just carpet it after construction was completed when we increased our lending) - final payment was HELD until this was rectified. Most of the time everything is fine. But checks do need to be made. As for the value dropping. This can be caused by materials being used that are sub what had been quoted to start with. OR, if the building contract was slightly inflated in the beginning, it is easier for a valuer to see this at the end with construction complete than it is from a Specification sheet in the beginning. Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. Hence get a lawyer, it… 4 11849 There is no reason why building contract reconciliation cannot be done prior to handover, if the builder won't do it get someone to do it for you. Why would you pay for… 3 6680 1) I had requested R6 ceiling insualtion batts, however I noticed that on some areas there are huge gaps which will allow hot air to sweep in, and also noticed black/grey… 0 3585 |