Browse Forums Home Finance 1 Jun 05, 2014 6:56 am Hello everyone
My husband and I are first home buyers. We put a deposit for a land and house. We are conditionally approved for home loan subject to property valuation. We are really concerned about the property being undervalued. My question here is, by what percent do properties get under valued? The price of our property is 445,000. Land is 420m2 and located in Point Cook, VIC. The land price is 245,000. Right across the street of the land, there is a park. Construction is 200,000. The construction is a turnkey package. So, the price includes the usual 4 bedroom house with landscaping, driveway, ducted heating, blinds,... The upgrade we made only cost additional 1000 dollars. Do properties get undervalued by 5%, 10% or more? I understand that off the plan properties undervalued quite a lot. How about house+land packages? Do people have problem with valuations in Point Cook? Please share your experience. Thanks Re: First home buyer: expecting low valuation 2Jun 05, 2014 7:39 am It's not that off the plan properties get undervalued, It's that when people buy off the plan they usually pay a premium. Also when it's completed prices may have dropped. A house and land package shouldn't be a problem. It's when people buy OTP units in big complexers where the problems usually occur. Sellers have a commission on top of th developers etc and this is where people overpay what it is really worth. What are built houses in the area selling for. If the price is close to $445K then you have nothing to worry about. Re: First home buyer: expecting low valuation 3Jun 15, 2014 11:17 pm 420m2 for 245k! thats a lot of money for a very small block. why so expensive? Re: First home buyer: expecting low valuation 4Jun 16, 2014 1:27 am hard_aground 420m2 for 245k! thats a lot of money for a very small block. why so expensive? its all relative! that size block in my suburb would sell for $600k. is it really expensice for point cook? Recently moved to a 60's home in need of some improvement! http://s797.photobucket.com/user/leenii ... ch%20House Old house: http://s797.photobucket.com/albums/yy25 ... loo/House/ Re: First home buyer: expecting low valuation 5Jun 16, 2014 9:00 am hard_aground 420m2 for 245k! thats a lot of money for a very small block. why so expensive? leni hard_aground 420m2 for 245k! thats a lot of money for a very small block. why so expensive? its all relative! that size block in my suburb would sell for $600k. is it really expensice for point cook? 245K is not that expensive for the area. The lot is located in the Paragon estate, which borders Saltwater coast estate to the east, Sanctuary Lakes to the north, Saltwater Reserve and the Green Wedge to the west, and Point Cook Homestead and the Green Wedge to the south. The current land price in Saltwater coast estate starts from 246,500, the land size starts from 350m2. Considering the location of the land, the price seems reasonable. Having said this, you might get the same size land 20K cheaper in other Point Cook estates, like 30 30 estate. I should also mention that we paid 5K extra because the land is located across the Saltwater reserve. Should we chose a lot of the same size but not across the Saltwater reserve, we would have paid 240K. Re: First home buyer: expecting low valuation 6Jun 18, 2014 8:03 pm We just had our land undervalued by $30000. The land was $400000 for 800sqm in east Brisbane. Our Real estate agent and mortgage broker are working together to put in a formal challenge. It's really stressful but they're all being really helpful. We should hear in the next day or two. Fingers crossed it goes up!! Re: First home buyer: expecting low valuation 7Jun 19, 2014 6:12 pm Hi all, We received the valuation for our house and land package. As expected, it was undervalued by 5.5% of the purchasing price. We feared it would be worse, considering the absence of sold established houses in the estate, the undervaluation by 5.5% is acceptable to us. We increased the LVR of the loan to make up the gap. We are now off to the building stress I wish everyone good luck. I hope your valuations comes within the range that is acceptable to you. Cheers, Re: First home buyer: expecting low valuation 8Jun 23, 2014 11:34 am The main reason that valuations come in low is that the valuer did not find any comparable sales to support the value that you estimated. However there could be other reasons. Some banks allow you to see a copy of the report which can help you to work out why you didn’t get the value that you expected. Don’t just put in another loan application! You’ll damage your credit score by having too many enquiries on your credit file. Some banks allow you to order a free valuation up front before submitting a loan application. When you apply for a loan, the lender will need a copy of the building contract/tender and the plans. They will ask their valuer to estimate the on completion value of the property and will assess your loan on the lesser of the land price plus cost of construction or the on completion value. Once your loan has been approved, the lender will issue a loan offer for you to sign and return, just like with any other home loan. When your builder is ready to begin receiving payments from the bank he will need to provide additional documents, such as the final council approved plans, his insurance & drawdown schedule. How do you request that the bank pay your builder directly? *The builder will send you an invoice. *You will then complete and sign a drawdown request form (available from your lender). *Send the drawdown request form and the invoice to the construction department of your lender. *The lender may require a valuation to confirm the work that has been completed so far. *The funds will be advanced to your builder generally within five working days. *Repeat this process for each progress payment required by the builder. Not much in this responce. My suggestion is, what are you looking to build and why. This will all be impacted by the local councils planning scheme. Familiarise yourself… 6 5858 4 6201 If you can calculate the reasonable charged head from let's say 100mm below the gutter to the top of where the vertical riser's horizontal discharge pipe will be, that… 11 17530 |