I have been refused finance due to the valuation coming in $20,000 less than the purchase price. The really odd thing is that the owner produced a valuation he had done only 2 months earlier by another company that came in $20,000 higher than the purchase price. How can they differ so much? From my research I got the house cheap and my valuer is way off! [confused2]
Ask your lender for another valuation. Or get another lender.
When the valuer comes show him the higher val, also do up a folder with details of all comparable sales in the area which support your opinion of the valuation.
Can only help.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
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Originally posted by staffreid129310:I have been refused finance due to the valuation coming in $20,000 less than the purchase price. The really odd thing is that the owner produced a valuation he had done only 2 months earlier by another company that came in $20,000 higher than the purchase price. How can they differ so much? From my research I got the house cheap and my valuer is way off!
Hi Staffreid,
And valuers will say they use the same statistics, they are fuly qualified and the other valuer is wrong. Hmmmmmmmmmm
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Valuers !
Seems most unusual to get disparity between valuers on a property. To me that just highlights another nice little earner for the banks. One time it I went to three different banks before I was successful raising funds against a property I have. Each bank insisted only their valuer…yeah right, all three came in exactly the same …waste of time and money . Is there a way to get around this ? Cheers , MLVIt is not that unusual really. It often happens, one of my clients has recently come in $300,000 short on the valuation.
What you have to do is, prepare to argue. Get a list of comparable sales for the area as this is what is the major determinate. Then go back to the lender and say why you think it is worth more. If the valuer won’t budge, ask them to order a new one, or change lenders. Make sure the new lender does not have the same valuer on their panel, or you will have to go thru the same problems again.
Terryw
Discover Home Loans
North Sydney
[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
Can only concur with what Terry has said.
We recently has a similar problem when a valuer came in under the purchase price by 4k,,,and the purchasers trustee questioned why they were paying 4k over thr VALUATION.
What a joke…my agent argued that the valuation can have a spread of 10% either way and that an EXACT figure doesn’t exist.
Also pointed out that the comparative properties used in their report were not that comparable.
All the purchasers trustee required was for the agent to put that in writing and they were happy.
In other words they were happy to qualify their official valuation with a letter from the RE agent.
Like I said, what a joke.In the end we got our asking price, as the other option we gave them was to “tale a walk”.
Had the same problem, valuer was $ 400 G below the comparable properties presented to him, it made no difference, the bank went with his, until I got nasty, and now we are all friends again.
Tell the bank you will leave, and what they are going to miss out on if you do.
Worked for me.
Try needing 15 valuations on different properties all at the same time and with three different banks.
That was us last year in May when we were buying 6 houses all at once. Fighting with the banks is silly, they are all useless and think they are gods so never be afraid of getting a valuers name and number and doing as much research as possible yourself. They only go on what is unconditional and actually sold so if contracts at those prices are just signed they wont be considered.I have the name and number of Rams, homeside, Suncorp, ANZ, PCU and Integris Valuers and contact them when I need to nudge figures a bit.
Recently, in liason with the Suncorp valuer and the local soncorp manager I got them to value 2 properties 10K higher each. This meant that for the particular deal I needed $16k less to get it all through. Persevere and good luck.
DD1
Don’t sweat the small stuff,and it’s all small stuff!!
This is a great discussion , love it !
Thanks folks for the handy hints on valuers etc.
…just confirms it is indeed another little rort the banks are bunging on us . It really is absurd that a bank says it will only recognise it’s own valuer’s report , mysteries of the business hey ! Regards, MLVThanks for your suggestions. I have put the hard word on the lenders and they have agreed to pay for another valuation, someone from their panel of lenders. I am in the process of getting a folder together of recent sales in the area. I have also heard that some valuers dont even see the property instead they ask the real estate agent for a valuation and use that! Aren’t they lucky to get their money straight up!!
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