Hi guys,
As a few of you already know, I have put in an offer on a block – subject to finance and valuations.
I needed to achieve valuations of $215k for a 3×2 and $230k for a 4×2 in merriwa.
However, WestPac just got back to my broker saying that the 3×2 is worth $215 though the 4×2 is only $220k! I don’t get this – seen as so I just spent $15k renovating the 4×2, which is a much bigger house than the 3×2 and is in a better location??
The 4×2 is only 4 years old – while the 3×2 is much older… on comparison it just doesn’t make sense that the 4×2 is only $5k more?
My broker reckons that the banks won’t take notice of any justification and will only accept the valuations they receivedïŒ
Any suggestions??
Rgds
Wayne
Banks can tend to be self-serving and illogical when it comes to valuations, you’re not the only one.
Have you considered another bank, or broker?
hi g7,
i’m happy with my broker, as he’s been helped me with my last 3 loans.
I’ve acutally had to switch all my current loans from anz to westpac to try and get the finance…so i’m kind of stuck with westpac:( Plus finance is due by the end of this week!
maybe i could ask for a re-valuation??
Wayne Leech
*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
http://www.homesearcher.com.au – List your property for FREE (Private sellers only)You obviously needed the valuation to come through in your favour. It didn’t, however as you’re only $10k out is it possible to find this, if you need to, by the time your finance is due?
I hope I’m on the right track with this but maybe a credit card or personal loan to make up the difference. Or you could chat to your bank and broker and explain that you’re $10k out and see if they could swing something?
Wayne,
It is possible to “change a valuer’s mind” (I’ve done it a couple of times) – but then, I’ve also been UNABLE to change a valuer’s mind MORE than a couple of times.
On the occasions when I was successful, I presented “comparables” that showed that my property was worth far more than the “comparables” they used. And questioned their use of “comparables” that were in NO WAY the same as mine (inferior).
On the occasions when I was UNSUCCESSFUL, I presented “comparables” that showed that my property was worth far more than the “comparables” they used. And questioned their use of “comparables” that were in NO WAY the same as mine (inferior).
In short, sometimes you’ll win when fighting with valuers – and sometimes you won’t. And, if using a broker, be sure to work THROUGH them as there is a certain pattern to be followed when making a challenge to the valuation.
With only 4 days left, there isn’t a moment to lose – go find some worthy “comps” – and good luck. Failing that, take your credit card out of the freezer…..
Benny
Depending on the LVR, Westpac often don’t even order valuations, but do an in-house valuation using comparable sales. Maybe you could dig up some comparable sales, and ask your broker to try for a revaluation, a small increase maybe possible.
Terryw
Discover Home Loans
Mortgage Broker
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
Hi Guys,
I’ve managed to speak to the broker, and he said that even though the valuer’s may re-value the 4×2, in his experience, he said it’s Westpac’s policy to only work off the 1st valuation…?
I managed to talk to my agent which is also selling another block a bit smaller on the same street of mine – which is owned by the same people and was at the same price as mine ($190-$200k) and they sold it for $188k:)
I relayed this onto the broker, and according to the valuator he would value my block at $188k+ as soon as settlement is done – therefore – in theory (because I got mine at $180k) – I should be able to go straight back to the bank and get a supplement loan against this additional equity in the block:) Hopefully this will solve the problem
Either way, this purchase has taught me a lot about valuations!!!
Cheers
Wayne Leech
*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
http://www.homesearcher.com.au – List your property for FREE (Private sellers only)It might be too late now, Wayne, but I just had a devilish thought!! How about using your 3bdr house as a “comparable” in your submissions re the value of your 4 bdr?
In the past, I’ve challenged location, size of block, and style of house. WHY would a valuer value a 4bdr as only $5k more value than a 3bdr in a similar situation?
In 1970, this might have been the best you’d get. But today, if a 3bdr is valued at $200k or thereabouts, a similar 4bdr would usually be valued at $20k more – easily!!! If not, WHY NOT?? They usually bring in better rents too. Sometimes way above the % uplift in value.
So go tap your valuer on the shoulder, and put the hard word on them. Can’t hurt, as you’ve lost if you just let it go.
Benny
Hi benny,
Thanks for the advice – though the deadline was too tight so I’ve taken the finance at the lower level, which – after some reshuffling of other loans – has worked out and we can get the block though our cash flow will be a little tight for the first couple of months.
Over the weekend I just heard that the block on the other side of ours has sold for $10kïŠ so between this one, and the other one at $188k we’ll definitely be able to get a supplement loan in 6 months or soïŠ
Cheers
Wayne
Wayne Leech
*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
http://www.homesearcher.com.au – List your property for FREE (Private sellers only)Wayne,
You said this
I’ve managed to speak to the broker, and he said that even though the valuer’s may re-value the 4×2, in his experience, he said it’s Westpac’s policy to only work off the 1st valuation…?For what its worth, one of my two successes WAS with a Westpac revaluation. In that situation, the second valuation (13% higher than the first) was accepted by Westpac. So all I can say is that it’s not etched in stone. Or your broker might need a bit more experience? [blink]
Sounds like you’ve found a workable solution for now – good luck,
Benny
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