All Topics / Help Needed! / wont revalue Piror to reno completion

Viewing 10 posts - 1 through 10 (of 10 total)
  • Profile photo of PropertyAngelPropertyAngel
    Member
    @propertyangel
    Join Date: 2005
    Post Count: 27

    Hi ya Guys n Gals,

    Just a quick one, not sure if anyone else has stumbled across this. Purchased property long with long settlement and prior access for rennovation. Rennovation completed but have now found that valuer refuses to value. They state that they will or can only value the home on a “Current state basis”. Yes I have also arranged a valuation privately prior to settlement and again the valuer has said the same thing.

    can someone tell me how you go about 1) getting around this and 2) what do you do if all the valuers on the banks panel say the same thing????

    Also have tried the avenue of getting an independant valuation from valuer not on the panel and then was faced with the bank refusing it as it wasnt as quoted by them “not CONTROLLED by the bank.” not naming any names! but im sure they are pretty much all the same. [freak]

    Maybe Im doing it all the wrong way, taking the wrong approach. Your words of wisdom would be greatly appreciated!

    [angel]

    Do more of what you’ve done! And youll get more of what you’ve Got!

    NO Such thing as cant

    Profile photo of MichaelYardneyMichaelYardney
    Participant
    @michaelyardney
    Join Date: 2001
    Post Count: 617

    You are correct. Valuers will not increase the value even if you have done reno work. And banks won’t accept anything above contract price for mortgage purposes.

    We warn our clients about this as many have come unstuck like you.

    I don’t know a way around this, but maybe one of the finance guys on this forum does

    Michael Yardney
    METROPOLE PROPERTIES
    Author of Australia’s leading property e-magazine.
    Join over 10,000 readers each month.
    FREE subscription http://www.metropole.com.au

    Profile photo of DDDD
    Member
    @dd
    Join Date: 2004
    Post Count: 508

    Funny thing is that even though a valuer is doing a value on your property, you cannot even see their report as it belongs to the bank even if you have paid for it.

    This smacks to me of banks massaging the figures to best suit themselves. Gee what a surprise.

    With a bank listing three valuers they may actually due to how “massaged” in their favour the vals from that person comes in, the bank may actually only currently use one valuer.

    In a tight market this collusion is worse as with fewer properties the valuers are more bank driven than market driven. So if Bank X says submit 10% below real value, guess who wins there.

    Until the property settles you are stuffed anyway, as all of the completed deals are reported 3 months historically, so if you have just completed the reno, good luck in getting anything near the new true value before a further 3 months has passed. They may review, or you may just get a different lender, but break costs and setup fees are big considerations to see if it is worth it.

    Not as clear cut as you first may have thought.

    Anyway, whatever you do good luck and every success.

    DD

    Buyers Agent (Dip Financial Services(FP)
    Don’t sweat the small stuff,and it’s all small stuff!!

    Profile photo of ErikaErika
    Member
    @erika
    Join Date: 2002
    Post Count: 151

    HI guys

    We have had the bank ( which bank) accept a valuation above purchase price we just got the valuer involved to persuade the bank that hte property was worth more. As for seeing the valuation all you need to do is organise it yourself with one of the bank valuers have them put the banks name on it but send it to you not the bank, you can then look at it before forwarding it on to the bank.
    Erika

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    So the reno is finished, but the valuer refuses to value on the current value? Sounds like it shouldn’t be a problem.

    Maybe you just have to approach another bank. ANZ lets the broker order the valuation and to receive a copy. Not many others do.

    However, even if the valuation comes in higher, they are only likely to lend based on hte contract price. Unless the long settlement mentioned has been over 12 months.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of PropertyAngelPropertyAngel
    Member
    @propertyangel
    Join Date: 2005
    Post Count: 27

    thanks for the help guys!

    The renno isnt finished and settlement as been agreed to be 12months or longer if i wish, as I live in the house at the moment.

    I understand that some ivestors arrange to have valuers attend before renno’s are completed, or so i was told they do.

    As I am buying the property from my parents I am looking to maybe access vendor finance rah rah rah…. But putting this aside, is it best for me to complete all of my rennovations before i arrange for the valuer to come in.

    Im also looking at getting a few agents in to give me general appraisals on the property before and after the rennovation.

    Im really not sure which way to go but I figure that Im probably going to have to finish the rennovations and then arrange the val etc.

    [angel]
    PropertyAngel
    [email protected]
    Do more of what you’ve done! And youll get more of what you’ve Got!

    NO Such thing as cant

    Profile photo of JayJay
    Member
    @jay
    Join Date: 2004
    Post Count: 59

    Hi Property Angel,

    In your first post you said:

    Originally posted by PropertyAngel:
    Rennovation completed but have now found that valuer refuses to value.

    Then, in your last post, you state:

    Originally posted by PropertyAngel:
    The renno isnt finished and settlement as been agreed to be 12months or longer if i wish, as I live in the house at the moment.

    Im not sure which one is correct – is the renovation complete, or not?

    If the renovation is not complete, then Im unsure how you can expect a valuer to value it based on something that will occur in the future. If the house is curently not fully renovated, then the valuer can only base the valuation on the property in its current state – NOT on what you say it will look like when its finished.

    The best thing you can do is get the house renovated then apply for an increased valuation.

    Jay.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    If you are buying from you parents, can’t they just make the contract higher?

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of DDDD
    Member
    @dd
    Join Date: 2004
    Post Count: 508

    Terry, higher stamp duty and tax to pay for parents too. Cover this for them and they would have no reason to up the sell price.

    DD

    Buyers Agent (Dip Financial Services(FP)
    Don’t sweat the small stuff,and it’s all small stuff!!

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Stamp duty would be marginally higher, but CGT wouldn’t be any different if done correctly.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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