Browse Forums Home Finance 1 Jun 08, 2016 1:18 pm Feeling like we are never going to get this house at the moment!! All our finances are ready to go, and the price of the new build is $500 000, however ....the bank valuation just came in at $450 000!! Way off! Our broker is not happy at all as he thinks it's absolutely ridiculous. Being the only 2 story currently for sale (or in recent sales) it is getting compared to single story houses which are cheaper. The broker is changing banks for our finance and getting a second valuation done, but to be honest I am quickly losing any hope. What are the chances that a new valuation would jump $50 000? Is it possible to have that much variance? Would love to hear anyone's story of a a second valuation after an initial low valuation, and how it all panned out. Just for information sake, we are buying an already establish new construction, so can't cut any upgrades out of the build etc to make it work Re: Low bank valuation ...much difference with a second?? 2Jun 08, 2016 2:20 pm HI Dreamer, definitely I see this kind of variation in valuation all the time - unfortunately! Was it the land component or the build component which came in short? If its the build you'll have some what more trouble, but if its the land then the broker can find comparable sales to give to the new valuer. Something we do all the time. Fingers crossed for a new val! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Low bank valuation ...much difference with a second?? 3Jun 08, 2016 9:20 pm I think they are buying a newly constructed established home which would mean the valuer would be using established comparable sales. The fact that they are using single story to a double doesn't matter so much as long as the total living space is comparable with comparable fixtures and fittings. Sometimes too the valuer may come in short of the lvr is high as it's the valuer that will get hit of the bank has to take possession and the home isn't worth what the valuer said it was. - otherwise known as Kym - Re: Low bank valuation ...much difference with a second?? 4Jun 14, 2016 4:11 pm Well, just got our second valuation for the house back, and they valued it at $502 000!! How is it even possible to have a $52 000 valuation difference between companies? Absolutely ridiculous! I mean, I'm glad the valuation came back great, but it really highlights just how flawed the system is doesn't it!! Re: Low bank valuation ...much difference with a second?? 5Jun 14, 2016 5:06 pm My place was once valued at $600k by one valuer & $975k by another the same day. It's an art - not a science! Glad you had a win! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Low bank valuation ...much difference with a second?? 6Jul 04, 2016 11:18 pm Dreamer49 Well, just got our second valuation for the house back, and they valued it at $502 000!! How is it even possible to have a $52 000 valuation difference between companies? Absolutely ridiculous! I mean, I'm glad the valuation came back great, but it really highlights just how flawed the system is doesn't it!! Dreamer.. Glad that ur valuation worked out well ... I have similar concerns although haven't done the valuation yet . Can you advise once the initial valuation was low , did u do another pre approval to get the second valuation . What is the process and how long does it take for the second valuation process Glendale 39 build viewtopic.php?f=31&t=83907 Re: Low bank valuation ...much difference with a second?? 7Jul 05, 2016 8:23 am Your broker can organize an up front valuation with other lenders before you do a preapprovals - you don't want the time, bother or credit hit of shopping around when it's simple to order a valuation alone. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Low bank valuation ...much difference with a second?? 8Jul 05, 2016 11:10 pm becjarrettdalton Your broker can organize an up front valuation with other lenders before you do a preapprovals - you don't want the time, bother or credit hit of shopping around when it's simple to order a valuation alone. Thanks ... My broker was definitely not clear about this .. Worth keeping that as an option .. Glendale 39 build viewtopic.php?f=31&t=83907 Re: Low bank valuation ...much difference with a second?? 9Jul 06, 2016 3:18 pm The valuer is writing part of the risk cover for the loan. If the loan goes bad (default > repo) and the bank cannot cover the valuers OPINION (within a suitable time period), then its the valuers insurance that covers the difference. As with all human interpretations, there can be a variance. Start with a valuation before a loan application, otherwise your credit file gets application after application that doesn't look good for you for future applications (within 6mths). Not only is a 'good' (competent) broker needed, a home loan broker WITH A GOOD WORKING RELATIONSHIP with many lenders is critical, as banks don't like paying for valuations without an application. 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