Hi everyone,
I notice a lot of people talking about “real value” of a property, but how do you determine what the real value is worth?
ambo72
g’day – you cld get yr property valued by an independant valuer! most people go by recent sales in the area.
cheers
Thanks aussierouge, but don’t the banks value the property before you buy?? You’ll have to excuse my ignorance but I’m new to this.
no problem – they are meant to inspect and value the property once you apply for a loan but generally unless you have paid way too much they accept what you pay for it – in the end. if that makes sense???
best to get it valued independently and if the bank dont agree then you have a case to argue!
remeber that the banks main aim is to sell you a mortgage not to police the price you paid for it.
cheers
>remeber that the banks main aim is to sell you a mortgage not to police the price you paid for it.
Until you miss a payment [
]BC
O.K, last question….I hope.
If the banks don’t mind what you pay (unless it’s to high), and the real estate agent your buying it from definately doesn’t mind, who would be the best person to inspect it?
[
]if i was unsure as to the value of a property i would ask a valuer (see yellow pages) or use a buyers advocate wch can be another realestate agent. you cn pay them a fee to act on yr behalf.
cheers
if you are putting in a decent amount of equity and buying in an area that you aren’t familiar with, a proper valuation would be advisable. I once paid way too much for a property despite the bank doing their valuation – the bank didn’t care as they held cross collateralisation. I naively assumed the bank would have given me a warning sign. This was back when I started out. I also tried to track down someone that could give me an opinion on the building’s construction. Some guy walked around and wrote a report saying it looked fine, gave me a whole heap of disclaimers and charegd me a few hundred bucks. Only later did I discover the extent of the dodgy extensions and bad wiring situation.
Great!
Thanks for your help I really appreciate it.
[
]I posted something about this on another topic, and it was about value and banks and real estates…
My bank would not let me argue the point on a property that their valuer said was lower than all the going sale prices over the last 6 months. They gave me a range. Full stop. If I wasnt in the range, I didnt get my loan. My bank manager even sent me the banks valuation and commentary, not sure too many banks release those details…ah he loves me!
lol
Values are based on area, demographics and other things that influence price…and this includes the negatives…..eg known to be a bad rating area, rather like an insurance policy. They rate the area. say on a scale 1 to 4, 4 being bail out teritory. Anyway, all efforts to bargain, or sway would not increase the loan amount. I gues she was protecting me, and not saying, oh well if she cant pay, we take her home…..sssssss.
Ultimately BANKS fo not like to do this, it is bad publicity and they want to avoid that.
cheers
Elves
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