This is probably not true but it certainly feels like it. Have been looking through all the threads related to valuations to get some ideas and info from others. But really just venting I suppose.[angry2]
Short version of story
1 month ago
Approached PPOR lender wanting to X-collateralise (I know this is a SIN in some investors eyes) PPOR with IP6
Provide all required paperwork
Requested valuation to be done on PPOR number at the time.[biggrin]
2 weeks ago
Reminded them about valuation – as on the hunt for IP6[hmm]
last week
Back to lender (have spotted IP6 – will B great buy at right price) but may need more money than verbally approved for (Still no call from valuers). (Only wanting Pur.Price monies – costs and renos from LOC)
Most likely to get more money if valuation is OK (have been watching the market over 6 months)
Offer on IP6 10% below asking price.
[happy3]
This week
Finally valuers have rung – 8.30am wanting to do that day on PPOR (already at work)[annoyed]
– meetings all day and tomorrow
– how’s 4.00pm (me)
– no that doesn’t suit (valuers)
– what about tomorrow morning (valuers)
– no (have conference in city can’t get out of)
– do you work everyday (valuers)
– YES (me)[
!](days before unconditional running out quickly)
– ok how’s 3.00pm today (me) (leave 1 meeting and have to go back to another) –
– Fine (valuers)Arrive home valuer park in my driveway not really far enough in (I live on busy street)
Find “Work Experience Kid” valuer at my door – very young looking, hair and clothes really neat and tidy – clip folder under 1 arm and pen in pocket
House is how I left it this morning – bomb gone off condition – well he’s not here to see how tidy I keep it.
Take him inside – point out renovations, full air cond, almost no conversation from his side – once around inside, then outside, out comes his tape measure – ask if he needs any help – no he’ll be fine (he replies).
Couple minutes he’s back he’s finished then asked how best to get out of my driveway and could he turn round in my backyard.[saywhat] (Work Exp Kid)Playing phone tag with lender for next 2 days (unconditional time ticking away)
Finally speak with lender manager – he says there’s bad news – valuation on PPOR came in $25K under what I(me) had estimated (NOT HAPPY JAN)[vangry]
He’s says that their not budging.This means not only $25K under but at 20% deposit that is 100K less than I can borrow.
He says we’ll put it in and see what they will lend me???????
Within minutes I’ve marched into lender wanting to see manager. Made an appointment cause he couldn’t see me and wouldn’t be able to until next week!!!!!
Told him not to put anything through until we had spoken.Most likely will have to let IP6 go for the moment but they didn’t accept my low offer anyway and not prepared to move any higher until this business is sorted out.
So if you have gone this far I would like any thoughts/ideas/other suggestions on these points below
Some thoughts when I meet with my lenders’ manager next week (he’s already changed the appointment to later in the week – he had a meeting suddenly come up)- I paid for the valuation so I want to know how they came up with it – as an investor I don’t accept other things at face value (due diligence) so why should I accept this when I paid for it
- I wonder how they would feel if I said that I would might insure the property for the value they have given – it’s insured for nearly twice the price of the house that they have quoted if you take out the land value
- I would also like to know how many years the young gentleman had been valuing that did my place – I know everyone has to start somewhere but!!
- there’s also I can take all my business elsewhere option
To be fair the lender manager, he did say that I (being an experienced investor) was probablly out of their league – as they are more the mum and dad + maybe 1 IP type lender.
This has propably ended up the long version but I feel better.
Thanks for reading (listening)
RichTeddy[crown]
You could demand the bank does a revaluation, you will have to prove this though (so you will need to get the average selling prices of houses in your neighbourhood and compare your hoiuse to recent sales – e.g. X house sold for $X and it did not have air conditioning, etc).
Or you could get your own valuation done (see if it’s on the banks panel of lenders) and demand they either use yours or do another one.
Also try to be as friendly as possible to valuers, I mean be extra nice too them. Because they control wether you can borrow more.
Hellman
Hi Richteddy
This is only one bank & they don’t control whether you can borrow more. Get on to an experienced mortgage broker who deals with investors all the time & you will be surprised how much they can do for you. Otherwise try ditching your credit cards if you have any & ask your bank to take another look as the amount of money you can borrow can increase quite dramaticaly when you lose your cards or at least reduce your credit card limit.
Doesn’t help with the question of valuations – do you have data to say what has happened with values in your area over the last 12 months? You could try showing that to them.
Good Luck
SparkyHad similar problem with a (IMO) dodgy valuation not long ago. Valuer spent barely 2 minutes in the house, took measurements very quickly and was gone within 10 minutes of arriving without asking a single question. Having been through a few valuations I was a bit shocked how this one went and had a bad feeling. Sure enough valuation came in at about $30K below what we felt it should have been. Even allowing for conservative nature of valuers this was ridiculous. Naturally we disputed and I obtained and provided a list of similar properties sold in last 12 mths in our area but all to no avail. Valuer would not budge. Considered getting an independant valuation but as it didn’t effect outcome of our finance application decided not to bother but it still left us shaking our heads.
Our PPOR is a 4×2 B+I, 13 years old, excellent condition with seperate games/home office building. Within a month a property at end of our street came on market and was snapped up within a few days. Same size block as ours, same zoning, non-development, 20 odd yr old, cedar with asbestos roof, 3×1, tired, nothing special sold for just $20K less than our valuation.
Don’t get hung up about the condition or aspects of the house.
They value your dirt. Where is it, how much have you got and what it’s zoning is.
I believe they spend so little time checking the house out because it plays such a minor role in the valuation.
When push comes to shove and the bank forcibly evicts you from your home and they start proceedings to recover their funds, the dirt is what they are relying on, not your house.
In terms of your physical house they look at sqm, type of construction, and overall presentation. None of this requires conversation. Getting good ticks in the boxes in these 3 would barely lift the value of the dirt.
If you want a higher valuation – don’t get upset, get more or better dirt.
Hi RichTeddy
I always get valuations done by three local REA’s as well (on all properties), prior to even looking at obtaining finance..this gives me ‘ball park’ figures
I have absolutely no loyalty to ‘any’ bank, they seem to be happy with this arrangement.
I always use a Mortgage Broker as I dont want to be limited to one Bank and i’m sure you can find a good broker by asking or veiwing the forums here.
Arguing with the bank might yeild a result but I wouldn’t count on it.
How are comparable prices in general in the area of your PPoR, what is the market doing..how about were IP#6 is?
How is your LVR and DSR, should the Bank consider you a ‘good risk’?
No is not an answer from the banks..its just an opinion (from one bank- remember there are a few hundered more out there, then there are other ways to get finance)
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator
!](days before unconditional running out quickly)
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