Hey all,
Just a quick one on valuations:
Currently in the process of purchasing a set of shops (235K), the bank (st.george) required a valuation as normal. The bank manager new the price I was paying as discussed, when he had the valuation done i made a point of saying don’t tell the valuer the price I am paying! However when the valuation came in surprise is was exactly 235K!
The valuation cost 1500 ( is this expensive?), and also how can i get a higher valuation as I wanted to borrow more to cover my legals etc.I am not sure what i have done wrong perhaps i should of found out the banks approved valuers but the bank will still lend on the lowest value won’t they?
Look forward to your replies
Cheers
Will [
]Hey Will,
Unfirtunately the bank manager more than likely told the valuer the price paid. He will always act for the good of the bank first (After all they employ him/her). It is handy to have a list of the approved valuers and I am sure someone on the site could help you with that. If you had got your own valuation done and the value came in higher you would have had trouble getting the bank to use that valuation as they always use the lesser of the purchase price or the valuation. One way to get around these sort of problems is to either find a sympathetic bank (ha ha) or pay cash for the deal then refinance after on a valuation. Means having a lot of money out there for a while but a fairly quick recoup. $235K is a lot of money but thought I would through in the suggestion anyway.Hope this helps.
Enjoy
AD [:0)]
(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Hi Whindes
Usually when you purchase a property the value will always come in at the asking price (unless it is over valued) I think you will need to proceed with the purchase then do a variation or line increase in a month or so? Maybe you can do some extra renos to the shops to increase the value even more.
I also think that valuation fee is overpriced!
Hope this helps!
[]Thanks guys,
Yes it is the same old story really isn’t it, all part of the fun though!!!
Cheers
Will
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