Browse Forums Home Finance 1 Sep 08, 2010 8:39 pm I bought a block of land at $150k less than it's listed price. The bank sent out a fill in ( his words) valuer who is unfamiliar with the area and asked the estate agents in the area for help. Including the agent who sold me the land (this is how I know) He came back with comparable properties up to 4 suburbs away and $100k less than our purchase price. So this would mean the seller had it overpriced by $300k??? I don't think so....... The next suburb over has properties up to 5 million and the neighbors with way way smaller blocks totally support our purchase price, but the bank need sales in the last 6 months only. I'm looking for suggestions here. It's near impossible to get blocks this size (several acres) so close to the city under 1 million and I can't understand why the bank sent such a useless valuer for a loan involving 7 figures. I know we got a bargain as ive been looking for over 2 years. H's Emperor Q1 on acreage Site cut 16/6/11 Slab 2/8 Frame 29/8 Tiles 9/9 Bricks 13/10 Plaster 2/11 Fittings 28/11 PCI 19/3 Re: Bank valuation less than purchase price 2Sep 08, 2010 10:09 pm Tell them you are going to use another bank if they dont take their job seriously and that you dont wish to work with such an amateur organisation - I think too often people forget that WE are the customers yet we pander to banks waaaaaaay too much. If that doesn't provoke a response and some action, then I would actually try another bank. Re: Bank valuation less than purchase price 3Sep 08, 2010 11:22 pm depends on how close your LVR is etc... can you ask for a 2nd val, we did, not that it helped us actually. They also told us if they did a 2nd val that they'd take the lower one, but that can't be right, who'd ask for a 2nd val with no opportunity of a better result - D/heads! A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: Bank valuation less than purchase price 4Sep 09, 2010 9:19 am Don't really want to use another bank as the contract has now gone unconditional. Will try calling their complaints line and see if that gets me anywhere - I don't think they could possibly get a lower valuation if they tried..... H's Emperor Q1 on acreage Site cut 16/6/11 Slab 2/8 Frame 29/8 Tiles 9/9 Bricks 13/10 Plaster 2/11 Fittings 28/11 PCI 19/3 Re: Bank valuation less than purchase price 5Sep 19, 2010 12:36 am Hi Guys Heres some quick info on Bank Valuations ; 1. The banks today mostly use panel valuer (not longer the bank manager) 2. May have up to 2-5 different valuers on the panel . 3. Due to the lack of property selling , most or all are coming in under the customers est. This is due to the lack of data to compare you land/property to . 4. When property developers drop the price or offer cash back payments , this can effects land sales in the area . Hints Do some market reseach , talk to real estate agents about similar property to your purchase property (look for data about 3mths old) . Take this info to the bank/Bank Manager/ Valuer and get them to review the valuation. I'm happy to look for sales if the property is in Queensland . best of luck cheers m Re: Bank valuation less than purchase price 6Sep 19, 2010 9:07 pm I've worked for a valuer and I'm with foresterxt. Surely there are some comparible sales though in your area? You need to do your own research and show the bank/and valuer yourself. If you can prove your right, the valuer will adjust his valuation. Might not be 100% what your after as he also has to take into account his future prediction of the market and how it could effect your properties resale. Are the properties still increasing or decreasing in value where you are? Re: Bank valuation less than purchase price 7Sep 19, 2010 9:41 pm We had a similar issue (not in the same league though, only 6 figures). But we did challenge the valuation and the bank asked us if we could support our challange. Well, we did and go the bank to change the valuation based on our figures that were completely tracebale to source (very important). Best of luck ! Suburbia is where the developer bulldozes out the trees, then names the streets after them. Re: Bank valuation less than purchase price 8Sep 20, 2010 8:41 am garden lover I've worked for a valuer and I'm with foresterxt. Surely there are some comparible sales though in your area? You need to do your own research and show the bank/and valuer yourself. If you can prove your right, the valuer will adjust his valuation. Might not be 100% what your after as he also has to take into account his future prediction of the market and how it could effect your properties resale. Are the properties still increasing or decreasing in value where you are? There aren't really comparable sales, as there isn't much land left to buy in the area, and mine isn't a standard house size block - its acreage. The valuer was limited to the last 6 months of sales, which is always problematic when its a very small suburb without much turnover. Prices are very much going up - have been chatting to the locals and they comment about the lack of land in the area and how much the prices have increased. The 1 acre block next door sold for 1.3 million but because it was over 6 months ago, the valuer didn't consider it. Have done my own research and have submitted a statement to the bank. Also provided some sales for the suburb next door with very high values, which the valuer chose to totally ignore. Waiting on a response from the bank. H's Emperor Q1 on acreage Site cut 16/6/11 Slab 2/8 Frame 29/8 Tiles 9/9 Bricks 13/10 Plaster 2/11 Fittings 28/11 PCI 19/3 Re: Bank valuation less than purchase price 9Sep 21, 2010 3:57 pm Bank came back with a marginally higher valuation. Still woefully below the value it should be. (Its $220k less than the listed price, and $60k short of the purchase price) H's Emperor Q1 on acreage Site cut 16/6/11 Slab 2/8 Frame 29/8 Tiles 9/9 Bricks 13/10 Plaster 2/11 Fittings 28/11 PCI 19/3 Re: Bank valuation less than purchase price 10Sep 21, 2010 6:14 pm Hi Cookie_Monster, Which bank are we talking about with this one? Just curious. Were you ever able to find out which valuer they were using? The suggestion or putting together your own comparisons is a good idea if you have them available. If you dont in this particular instance you may actually obtain a better/quicker result if your do look at changing lenders even at this late stage of the contract. If the current amounts are 'ok' for you to go ahead if you HAVE to... then you can keep the current application in play. However, this doesn't mean that you can't seek a second opinion from another lender. You can try and pick out another bank/institution to target or check in with a broker to see if they have a lender that is available. By looking at a few different lenders you may find one with a credit team flexible enough to allow comparable sales outside of the 6 month's into the picture. Or you may find that a different bank's valuer will provide the figure you require. If you speak to the right person they may be able to order a valuation up front before submitting an application. If it comes back fine then its just a matter of putting everything else together for the submission. Realistically, if you go to your agent and say... The contract may fall through if we dont have a little more time to get this finance hitch sorted.. then they will work hard to try and negotiate that extra time for you. Hopefully this helps you out a little. If you need to discuss any details more private than general information feel free to private message me. Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: Bank valuation less than purchase price 11Sep 21, 2010 6:54 pm Hi Trent, The finance clause has gone unconditional by many weeks now - mostly due to CBA taking their sweet time, despite me extending the finance clause by another week. Don't really want to go swapping lenders seeing as the application itself has been approved, including a construction loan to build the house. I can probably come up with the $60k but its just going to be a real pain, as it will affect the $ I have to spend on the house. They probably used the cheapest outsources valuers that they could find H's Emperor Q1 on acreage Site cut 16/6/11 Slab 2/8 Frame 29/8 Tiles 9/9 Bricks 13/10 Plaster 2/11 Fittings 28/11 PCI 19/3 Re: Bank valuation less than purchase price 12Sep 21, 2010 7:05 pm Hi Cookie, In a lot of cases it is sometimes best to get it sorted and settled then sort it out afterwards. It may be the case that in 3-5 months time once all is completed and the house built you can just simply refinance the loan away from them to another lender as well as obtain the extra funds to repay the $60k should you need to borrow that from elsewhere. I dont condone refinancing out of somewhere for no reason. But, if you need to look elsewhere once construction is complete in order to get a correct valuation then the less than $2,000.00 cost may be worthwhile. It is just unfortunate that you dont have some more time to find that perfect institution now before everything begins. Keep on the forum's here Cookie if you do look to shift things once this is complete. I'm sure we can help point you in the right direction at that time. Regards, Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: Bank valuation less than purchase price 13Sep 21, 2010 8:23 pm Hey Cookie Monster If you can find the $60k , this would make life some what easier (just to get the block settled). Then A. Ask the bank to revalue the block in 6 to 12mths time and top up the loan to get your cash back . + Valuation should be Free - Could come in less (I'd do option B first) . And this would effect your current loan and you may need MI or more cash to keep the bank happy . or B. Get the valuers business card/name and call them in 6 to 12mths time to do the valuation for you . Give this to your bank for a top up + You'll have a copy for your records + You'll know before the bank what the valuation is , and how much you can borrow - The valuation will be at your cost . I did this when building our house , so we didn't over spend . cheers Mick at most it will have a short lintel which could be moved up just below the ceiling or even above. Above means you need to patch the cornice and might need to deal with… 2 61393 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11934 Wow I hadn't realised things had gotten that pricey in just a couple of years since I built, that is crazy with how much land is now costing if you aren't lucky enough to… 3 7136 |