Have recently purchased property in SE Queensland and are building a house.
Have a construction loan going through Bankwest and have taken the services of a mortgage broker.
We have bought the land and have signed a contract for the construction of the house and paid all of our deposits.
Our broker told us that first we must purchase the land and than it gets rolled into a construction loan .We received a rebate from the land sellers ( Stocklands) and told our broker in writing about this BEFORE any deposits were given and final contract signed. The valuation came back for the land in the full amount as we anticipated and we went ahead and purchased the land.
When we signed and deposited to the builder on our house, this valuation came back, minus $10k . This was the advertised amount that Stocklands was offering as a rebate. Obviously the valuer didn't check and assumed we received that amount also. We supplied documents showing that we only received $6480, NOT $10k. A second valuation came back ( weeks later), with the loan now minus the $6480. We disputed this again, saying that the package we bought also included over 50K in add ons from the builder ( A stretch I know, We weren't looking for 50K, just trying to make a point that if they apply the rebate, than they should also apply the credit addons for a similar amount) This of course , did not work. Third valuation came back the same. We decided to move ahead under duress as we desperately need to access FHOG. Now our loan is held up in LMI ( read PMI/QBE) as they have sent numerous MIRs to broker, regarding why ithere no contract stipulations for “ turf landscaping’ air conditioning and window dressing. UN REAL as this was never mentioned in any contract submitted. Have ALSO since found out that the valuer who did the 2, 3 and 4th valuations may also be a member of the developers board( Stocklands) who sold the land. WE understand valuers must value property at arms length. This was not done.
WE understand that banks must accept the lowest of two or more valuations and they have conceded informally through our broker that the first valuer ( who did the land) made a mistake.WE ARE NOW HELD TO RANSOM. WE WOULD NEVER HAVE COMPLETED THE LAND CONTRACT IF THE VALUATION HAD COME BACK LESS THE REBATE. WE WOULD HAVE WALKED AWAY.
SOME ONE PLEASE LET ME KNOW AHT OPTIONS WE HAVE. THANKS
maelstrom wrote:WE ARE NOW HELD TO RANSOM. WE WOULD NEVER HAVE COMPLETED THE LAND CONTRACT IF THE VALUATION HAD COME BACK LESS THE REBATE. WE WOULD HAVE WALKED AWAY.
What did you expect? A valuer who would value vacant land, without a current development approval to be valued at the "realisable" value not "market" value. The bank is valuing its interest in the property, not yours. You have set the market by paying $x-10,000, thus your price is $x-$10k. If you didn't advise of the rebate & it came to pass that you recieved a rebate it would be fraudulent. If the valuer didn't take the rebate into account, that would also go against the methodolgy used to value the property.
Yes.. totallya agree with the valuer.
it is overpriced by 10k… the selling price has 10k built in it… (marketing hype so called rebate)As above plus it is reasonable for the insurer to want to make sure the house is "complete" when construction is finished and a house without front landscaping, aircon or window dressing aint finished or, therefore, easily sold.
It is what it is.
one of my loans was with bank west and they were always great to deal with . i had a really positive experience and found living on the east coast that the time difference in perth worked in my favour ( for once )
usually the mortgage section of banks if full of anger and bitterness ( i have tried several )
im thinking you have a valuation problem rather than a bank problem
but having said that is it possible to try another bank ?
and a fresh valuation ?As per the above again – the fact of that matter is valuations or 'estimated market values' are based literally on what land or a property sold for – in your case, it was the contracted price less the $10k (or whatever that amount was'. Bank panel valuers or inspections people (and I imagine all valuers at present) have specifice instructions from the lenders to make sure contracts do not have clauses like this – and if they do the full contract is required for perusal, not just the front page, and the 'value' takes any cashbacks into account. SOme builders/developers that cant flog stock (I believe this was a big thing at a 'golf course property development' down Melbourne way) have been known to offer 'cash backs' of up to $50k!!! – which artificially inflates property values totally. Sorry for the news – but that is how it goes.
All the best with the build though of course!Cheers
Yes, I understand that it is marketing hype, etc etc, but my POINT is that i guess wasn't very clear in my first posting, is that our FIRST valuation which was for the land component and the first part of our construction loan from BankWest , came back full value, that is the contract price we paid for the land. THIS IS WHAT WE MOVED ON. We had also TOLD and WROTE to our broker that we received this rebate BEFORE.
So when we received the valuation in full, we went ahead. WE ARE NOW BEING HELD TO RANSOM, as it is obvious the first valuer got it wrong, or our broker failed to disclose to the bank our rebate.Yossarian wrote:As above plus it is reasonable for the insurer to want to make sure the house is "complete" when construction is finished and a house without front landscaping, aircon or window dressing aint finished or, therefore, easily sold.It is what it is.
Yossarion or My Housing Bubble, my understanding that values have a set list of criteria one of which it must be livable, and any interpretation of complete MUST be stipulated or outlined in the contract or subsequent post contract variations. Why not include a stone fence and a kentucky blue grass lawn turf lawn and multi zoned central air conditioning, certainly that would be complete.
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