Browse Forums General Discussion 1 Sep 11, 2013 6:36 pm Hi, Just wondering if anyone knows why the value of land appraisal might come lower than the buying price? We just received the loan approval from the bank but the value of the land is actually significantly lower than our buying price..we are definitely devastated Re: land appraisal 2Sep 11, 2013 6:52 pm That happened to us as well. The banks use an independent valuer so you can try asking for a different one. We didn't as we really liked the location, it did mean that we had a tighter budget for the build. They base the prices on recent sales in the area... Do a bit of your own research, what has land based on your size sold for? The other thing is to resubmit the loan with the house contract with it... Ours land was valued for less but when we submitted the building contract it came out as exact so it worked out for us in the end but I didn't splurge in some areas I would have otherwise so kinda a blessing... We may have been over capitalising if we didn't need to stick with our budget. Built a Hawthorne 31 with EB nessjeffdreamhouse.blogspot.com.au Building an investment now with New Living homes... We are at nearly finished... Just landscaping and driveway to go! land appraisal 3Sep 11, 2013 6:59 pm Disregard. I was on the wrong track. http://camdenbuild.blogspot.com.au/ by invite only please pm me Re: land appraisal 4Sep 11, 2013 9:37 pm We originally agreed to purchase the land for $125,000 however the bank only valued it at $115 we managed to re negotiate the price down to $122, for us it basically meant a frantic phone call to our parents to come up with the $7000 difference as we were borrowing 95%. We are hoping that the bank valuation is a little better when we go to build as we were one of the first to buy in our subdivision so the bank didn't have a lot to compare to. Re: land appraisal 6Sep 12, 2013 9:42 am Hi rachi, so did u negotiat3 with the real estate agent? I didnt know we could do that. We signed the contract to the agreed price tag, i dont know if we can negotiate that..but my partner will contact our solicitor today to look at options..i suppose.. Re: land appraisal 7Sep 12, 2013 12:17 pm Land valuation is not an exact science. Get 5 valuations and they will likely all be different, and possibly even to a large degree. Valuations is just someones opinion. Form your own well researched opinion. You have the time to see all sorts of things that a valuer who pops around for 2 mins (if he even does visit) will never be privy to. Re: land appraisal 9Sep 13, 2013 7:01 pm spacey529 Hi rachi, so did u negotiat3 with the real estate agent? I didnt know we could do that. We signed the contract to the agreed price tag, i dont know if we can negotiate that..but my partner will contact our solicitor today to look at options..i suppose.. Our conveyancer dealt with the agent, as our contract was subject to finance and with out finding additional funds or them lowering the price the sale would not have gone thought. The block had been on the market for a while tho and there is a lot of new subdivisions in my area so the seller was keen to get rid of it. Re: land appraisal 10Sep 14, 2013 5:56 pm We went for a 2nd opinion today. The guy said that the bank should have let us know that the land value is lower than the buying price before the cooling off period of the contract. She should have liaised with us with all these. When we asked her opinion about the land evaluation she made us feel like a couple of idiots who should have done their homework before buying the land. As a matter of fact, in the beginning she was the one who encouraged us to go ahead with buying the land!! She even been giving us conflicting information throughout this process!! So now we are thinking to change the financial institution..never again dealing with this particular bank. Im certainly disgusted!! Yeah I don't know why I came to a forum. Place is full of wierdos/pedos thought internet may help but I suppose I'll try my luck with someone in person. Cheers. I tried… 0 6435 Need advice on the backyard plan above. Should I excavate and cut all of the dirt to level with the house slab or semi-excavate as per photo above? Both left and right… 0 24845 13 6631 |