Hello,
I was just wondering if it was worthwile to get an independent valuation on a property that I am about to purchase, or is the bank’s valuation enough? I don’t want to be paying for the same thing twice if I don’t have to!! The property will be my first investment and I do have a “subject to finance” clause in the contract. Can somebody please shed some light on this matter!!?? I would appreciate your thoughts and comments.
Cheers,
Jay
**********************************
You must stay pOsitive
…then the cAsHfl0w will come!
**********************************Hi Jay,
Banks have their ‘preferred’ or panel valuers and as such you will need to use one of them otherwise it is highly likely the bank will get another valuation done anyway.
You can avoid the need to pay twice if you can find out who the banks valuers are (your broker will help) and get them to do a valuation.
When asking the valuer to do the valuation you will also need to get them to make if suitable for finance for your lender. Also confirm with the valuer that they are currently on your lenders residential panel.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Good ad vice Derek, also I have a policy of never throw away a valuers number, you might find that your next lender uses the same guys and a little market research with agents in the area faxed thru to them will aid your case for a good val.
I have 9 IP’s in Ipswich area(has 11 but just sold second to fund own home purchase) and have 6 differt valuers I chat to whenever I need an extra $5k here or there when im going through the peel funds out and go again scenario. If you dont get outlandish in your requests they are usually nice people and reasonable with the vals.
Good luck
DD
Don’t sweat the small stuff,and it’s all small stuff!!
pozz cashflow,
A bank valuation IS an independent valuation. The ones that are not independent are “in-house” ones that companies provide for you, such as the ones that occurred with off the plan apartments. You just need to make sure the bank values your property at the level you are about to pay.
Ifd you check out realestate.com.au and go to the suburb of the place you are buying in, it will tell you what previous places have sold for. That’s merely “one” way to get a relative value. Also, check out how much places are currently selling (not sold) for, in the suburb. You would probably have been researching the area before you decided to buy this place, and so you know this place has relative worth to the others, right? Make sure you know the are backwards before you buy.
kay henry
Good advice everyone.
HI Positive Cashflow
Derek’s advice is spot on, as you should be having a chat to the valuer yourself who will give you a good idea of whether you’re paying too much or not.
Don’t trust your bank to let you know if you’re paying too much for the property, as they will allow you to do it if you have good servicibility.
In other words, take control yourself of the valuation process, it will be a great learning experience.
Good Luck!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Thanks for your replies!! I am organising a valuer who is on the banks panel.
Cheers,
Jay
**********************************
You must stay pOsitive
…then the cAsHfl0w will come!
**********************************Guys, how do you get the lenders to take your valuation? even if they are on their panel.
I recently got my own valuation, and three lenders all refused to look at the valuation even though they were on the panel of each one. I basically wasted my money as the lenders insisted on doing their own anyway?
HHH
Hi HHH,
Unfortunately that can happen as you found out. I use a broker to support the valuations I have supplied.
It does beg the question why won’t the bank accept their valuers figures – the cycnic in me says it is so they can ‘instruct the valuer’ and influence the final figure.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Depending on whether the bank shades the value down $10-20k or leave it alone as with purchase vals, its the banks call. Maybe you find out which on their panel they are actually using this month as I know that if the valuer has even 1 dispute with a bank hes no longer flavour of the month and will usually be left on the list but not used again.
The only thing that never changes is the fact that everything changes. Life is lie that.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
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