I was talking to my broker last week about a property I am buying, I am concerned that if the bank valuation is to far below the purchase price then I will not be able to get the finance I want. He said ATM undervaluations are a problem for him as the market is overpriced, some recent properties on the gold coast had come in $50k $80 under the purchase price. He said there were things he could do to improve this situation if it occurs. I am wonder what these would be??
McDeyess
Brokers can’t do much unfortunately. it is a common problem, all we can do is try to argue with the valuer. These days banks are trying to cut brokers out of the loop by ordering the valuers direct so we can’t even talk to them.
Basically do you research, ask the valuer to justify his valuation with comparable sales. See how old these sales are and go back to the bank with you response. Some times it woorks, most times it doesn’t. I am finding the same problems on gold coast property at the moment.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Perhaps ask the lender if they will accept a valuation that you commission (you have to tell the valuer who the lender is and that it is for mortgage purposes). That way you can control the process and feed that valuer with all your supporting information.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auYou can always get a second valuation.
Some lenders are O.K. with the broker nominating the valuer as long as such a valuer is on the lender’s panel.
(Just this morning I was asked by the lender whether I have got a preferred valuer)And yes, the broker can indeed question the valuer’s figure by coming up with comparable sales and pointing out some relevant factors.
It would be best however if one could gather (you can do that yourself I am sure and thence pass on the information to the broker) details of comparable sales and have the broker attend the property at the time the valuer has made an appointmnet and hand them over.
I have on several occasions been able to have the valuer change his assessment.
Also, if the broker has a reasonable turnover he can establish a relationship with a particular valuer (by sending him business) and discuss the property beforehand and ask the valuer whether he thinks that he can justify the particular value you place on the property. If the valuer replies that he doesn’t think so then the broker can try another valuer.
Pisces133
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