Hi All,
We just had our house revalued by the bank, so that we could use the equity for other purposes, however the valuation came in under what we thought and what a few real estate agents (who knew we were NOT selling)predicted. What can we do if we don’t agree with the valuation? Our house has been compared to 3br, when ours is a 4br although the block is a little smaller 50×130. I am sure the valuer knew what he was doing and I don’t dispute this, but as we have seen other houses (in need of help) go for around the same price, we were a little shocked [
] As we have fixed our interest rate 6mo ago, it makes it hard to change banks without $3K break costs.. Any ideas with what to do?Have a great weekend
Sooshie [
]It’s all our imperfections that make us perfect!
Banks always value conservatively.
Real Estate Agents tend to be lees conservative.
Same thing with our property, but still had enough equity for deposits on other properties, as we had paid of our mortgage.
ReginaThank you for replying,
Yes it has given us enough equity for other opportunities, I guess it was just dissapointing. This bank is known for being ultra conservative.
Cheers
Sooshie
It’s all our imperfections that make us perfect!
Sooshie
You could write the bank a letter asking for the ‘payout figure’ as you are changing banks.
These days most banks have a retention unit, which handles people wanting to get out. They will be in contact with you as soon as they get the letter, and will do everything possible to keep you with the bank. You can negotiate interest rates, and possibly they will let you increase your limit without LMI so you can use that extra equity.
Terry
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
Sooshie,
2 points
1 whom did the valuation?
2 What lender/?
this will alter the valuation greatly.
if you have a problem naming the bank on here come back to me.
There are way’s around everything.
scotty
[email protected]Hi,
Thank you for answering and Scott you should receive an email shortly. I wonder if your the same Scott Kingsley who we took our first home loan with back in 1995? [8D]
Thanks all for the feedback…
Soosh
It’s all our imperfections that make us perfect!
Hey Sooshie,
On our last revaluation we told our lender that we would like to pay for the valuation ourselves, as we preferred to show the valuer through personally. They agreed to this and when the value came in at an unsatisfactory amount, I sent the valuer a two page letter outlining why I considered my house worth $30K more than what he had valued it at. I used comparable sales data, pointed out the errors in his report (he stated the house to be c25 yrs old when it is actually 14 yrs, wrote that we had timber floors when our house is on a concrete slab and didn’t count the study as a bedroom, yet it is big enough to count as one) and sent him some recent capital growth figures to support my case. He rang the next day, apologised for his oversights and wrote me a new valuation for $30K more!
It did help that I managed the process and I would do it again this way. The other thing I did notice on the valuation was that the comparable sales data they used didn’t quote the no. of bedrooms. I found this to be then misleading and told the valuer so. After all, how can you properly compare properties when you don’t know how many bedrooms they have?
Hope this has been of some help.
Happy investing!,
JPGood luck
Jacqueline
Hi! I have a template for doing the comparable sales data (as JP has done), saves reinventing the wheel. This one’s 14 pages though (in PDF format), so if anyone wants it, mail me at [email protected], I’ll send it out to you.
Cheers
WeiHi all
Thank you for your replies…You have given me food for thought and I am now chasing up the leads… I know for a fact that he’s undervalued our house…but the work ahead is to prove it…
Have a great weekend…
Super sleuth
Sooshie [
]It’s all our imperfections that make us perfect!
Hi JP
I was curious to read about your experience with the valuation carried out by your lender (and mildly surprised at the extent of the ‘oversights’ contained in the report). We recently had our house re-valued by the bank but were happy with the outcome so just accepted it. We had been told at the outset however, that we would not receive a copy of the report or the valuation amount and have been led to believe that many lenders have a similar policy. Did you use that particular lender due to their policy regarding valuations or have you found that there are other lenders around who will disclose the valuation amount and report?
Comments from anyone else who has had experience in this area would be appreciated.
Cheers
Building
Hi All [
]Just an update! On Friday, I went around to 2 local realators and asked them to come and value our house, not with the intention of selling but for investment purposes, increasing line of credit, etc etc. They all came and valued the house between a minimum of $380-$400k and up to $420+, they then wrote a report including a list of recently sold houses in the local area (about 5 house reports for each agent)for above the price the bank valued our house for (which wasn’t hard!). With this information my husband bypassed a pencil-pusher to speak to the manager of the bank, faxed him the results plus a PLEASE EXPLAIN !!! We realise after doing the calculations and coming in just under a qualifying amount, that the reason the bank undervalued our house was because if they give us the true value amount we then come under a professional package with a .25% reduction on standard variable rate rather than .1% reduction. Of course it’s in the banks best interest to give us the lower reduction and begrudgingly doing it with a $1K caveat if we want to get out of the deal.
Anyway, we hear back on Monday from the bank. If we have to refinance (which we are considering) we will have to delay settlement on our wrap property, which is supposed to settle this week! At $34 dollars penalty per day over settlement date…this is very costly. So I have learnt many a thing. I’m sure I’ll miss something out.* Get your structure in place prior to doing anthing (for those of you who went to the seminar remember what Paul Harper said !!!)
* Take control over your own affairs, not leave it entirely to brokers, banks, real estate agents etc.
* Remember the food chain (remember Steve’s laws)
* Time, try to err on the side of caution
There’s more but I’m too tired to continue (Simon’s teething)
We also learnt that a broker needs to work for the commission he earns (which for all of you who may not know is ~ 0.6%, with a trailing commission of 0.1% for the life of the loan. Unfortunately when things turned sour our broker blamed the bank, he gave my hubby the To-Do-List and said call me if you need me. I told my husband who was jumping around like a chook without a head, that it was our broker’s job to negotiate on our behalf with the bank, not his (by now he was a bundle of nerves and stressed to the max) and that the broker had to earn his commission and we just agree to the terms and sign the papers if we were happy. Too late now, but we know for next time and if we do have to refinance it won’t be throught him. Nice guy, but obviously lost his MOJO …
Thank you for all your postings and leading us in the right direction.
Cheers [
]Sooshie
It’s all our imperfections that make us perfect!
Sooshie_____________________
Good on ya maaaaate; I assume that it is still politically correct to say that to a lady ? [
]Anyway, excellent for keeping it together in the face of adversity and pushing along. I will be very interested to hear the end result.
Building____________________
Hey funky name, is it an old family one [] ?We have tried to get bank vals revealed to us and have often been told no, BUT, occasionally have been told yes by particular lenders or managers who actually can access the data.
Another option that you have (we often use this) is to :
1) Find out who the lender’s panel valuers are
2) Arrange with the lender that you will pay for the valuation out of your own pocket
3) Get the valuer to do her/his stuff and then present to bank.
4) If you don’t like the result you can always discuss the outcome with the valuer yourself prior to submitting to lender; Alternatively, even hire a differnt panel valuer.cheerio
Bruce (aka the Bruce, aka the wild man from tassie)
“Life is a Dance”
Hi all,
Just a quick note tonight. Mike de hubby just read the postings and told me ..”that you might wanna correct the spelling mistakes”. [
] So, instead of editing all my mistakes which would take till 2morrow I humbly beg that you ignore the grammar and take the ‘meat off the bone’. PI gang, if you will kindly add a spell check at some stage that would be great too [] Pretty please ???We heard from the bank…still negotiating…but looking brighter!
I’ll keep you all up to date. Thanks Bruce for the encouragement []Cheers and have a great and productive week
Sooshie
It’s all our imperfections that make us perfect!
Hi all!
Just a quick update. The bank finally agreed AFTER we’d signed the new loan documentation that THEY were at fault and generously put the value up on our house by 10K after I’d done my homework and ran around getting 3 agents valuations on paper and comparisons of houses in the area… 2 Hrs homework for 10K..mmm that is GOOD! [
]. Even before they agreed to this 10K increase on our well deserving house [], they agreed to give us the higher interest rate cut of 0.25%.
Hubby and I are very pleased.Thank you to all of you for giving us the information to arm us in our battle with the bank…
BIG CHEERS 2 U
Soosh [
]It’s all our imperfections that make us perfect!
Hi Sooshie, sorry I thought I’d posted to this previously but can’t see my post so obviously I didn’t hit send.
Further to Terry’s comment, it wasn’t until we asked for the actual Discharge Authority documents for our loans before teh bank took us really seriously. We ended up getting what we wanted.
Keep in mind also, that at times a bank may feel over exposed in a particular suburb, and not want to committ mor loan funds to that area. They can control this by restricting these “intangible” valuations.
At the time of revaluation, both NAB and CBA did the vals, both had different figures for both properties in question. Must have been the weather. hehe. <
)It’s a concern the banks doing that to you with the Professional pack. Makes you wonder what else they are “doing” to you or more importantly not doing for you.
Have a great day,
Mike
Remember, life’s about Family, Fun and Finance (probably in that order).
Mike
Director
http://www.PositiveCashflow.com.au
“Positive Cashflow for a Positive LIFESTYLE”
because
“Life’s too short to be Negative”Just a reminder that the banks are being conservative and more so in the current economic climate.
They have their criteria and thats it.
It’s a sort of brake on being over commited.
ReginaHey Sooshie !
Congratulations (and I reckon that I am echoing the sentiments of all of us [
]). Good on you for hanging in there and DOING the work after you found out the information !!cheerio
Bruce
Thank you !
Sooshie [
]It’s all our imperfections that make us perfect!
] As we have fixed our interest rate 6mo ago, it makes it hard to change banks without $3K break costs.. Any ideas with what to do?
]
] ?
] So, instead of editing all my mistakes which would take till 2morrow I humbly beg that you ignore the grammar and take the ‘meat off the bone’. PI gang, if you will kindly add a spell check at some stage that would be great too [
] Pretty please ???
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