If you purchase a property for say 15% under market value, is it then possible to straight away refinance and get some of your cash back out of the deal??
If you have it re-valued (u will have 2 pay a small fee to transfer this valuation to the lender, as well as cost of valuation), then start asking a few lenders, this should be possible. If u just approach the lenders, they will use their own valuer (some will insist on this anyway – give them a miss) and some of these could be drive bys made by their own staff at a fire sale level – not what u want![^]
HilaryMy Bank (Commonwealth) has a policy of only revaluing once a year. I recently purchased a property which i knew was around 20% below average market price (based on my prior research before entering into the deal!). so this is what I did:
1. Approached the CBA and asked if they could revalue the property. They said no (per policy -was worth a shot though)
2. Asked what valuers were on their “panel” of approved valuers
3. Commissioned the valuer myself- asked for a “free and fair market” valuation. cost about $200. Make sure you get an “extension of liability” clause in the report – allows you to take it to the bank.
4. Made sure i was present during the valuation and pointed out all the positive features of the property (even how quiet the street was at night versus the streets around other areas of the suburb.). Valuers are human and price homes in a band of valuations. If they feel warm and fuzzy over the features of your property they will tend to place the valuation at the top end of the band.
5. Valuation came in at 30% more than my purchase price.
6. Took Val to bank and had refinanced.
7. Was happy.
Hope this helps.
Dan
Thanks guys!!
Dan does that mean that when banks say you cannot refinance within a year they really mean that if you want to refinance you’ll have to find your own valuer then bring the valuation into the bank. Thats what I can gather from your post.
Thanks David
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