We are in the process of buying 2 QLD properties and for the first time we are borrowing 100% against the equity in our home which we own with no debt. The local valuer (from town 70km away) which the lender commissioned valued the land (1000m2 corner block with ocean glimpses) at $140,000. If a block comes onto the market in this suburb it sells for $175,000 – $180,000 upwards, so I believe the valuer has under valued our property.
I have a feeling the valuer has got the $140k price from the land tax valuation and not from recent sales. What can I do to correct them. I was thinking of going into the local real estate agents to get addresses and recent sale price figures to present to the valuers to get it re-valued. Is this the right way to go about it?
Although we got approval for our loans, I feel the lender has an incorrect value of our property which could affect future lending. The bank manager actually attached a letter to head office when submitting the loan application form stating that they also believed that the value was under market value. I didn't request this letter to be attached, she did it off her own back.
Thanks in advance
Martin
If you wish to challenge a valuation, you will need to show recent sales history for similar properties in the area. Try and get a little list together and present this to the lender who should pass it on to the valuer.
However, if you have the loan approved already, then there is not much to worry about. Valuations are only valid for 3 months, so unless you are planning to buy again soon, just leave it till next time. And then prepare a list in advance so the lender can present it to the valuer before they go out.
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
I wasn't aware that the valuations are only valid for three months. I won't worry about it this time, but I will make sure I am pre-armed with recent sales next time to give to the lender/valuer.
Thank you Terryw
Martin
Have you talked to the valuer and asked why he put $140,000 on it? This is usually the best step and most overlooked step in the valuation process.
Big tip though, don't be agressive or superior when talking to a valuer, its human nature that they will resist harder than if you are pleasant and have a chat. Dont act like the valuer is an idiot and doesnt know the market.
Trust me when i say this!
Thanks Whiper11, ….. I'll do that.
No worries, let us all know how it goes.
Just for the record If someone comes to me with relevant sales info, i have changed valuation reports before. I dont like doing it mind you, becuase it doesnt look good fo me, but I have done it.
If you come to me with nothing but "I saw these properties advertised for sale and mine is better than them so mine is worth more" you arent getting very far!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
