I was going to buy a property for $310k (100% loan), but the valuation has come back at $295k. As a result, the bank have said no.
The area had a recent (last months or so) upswing in prices (Springfield area), so I think the valuation is using out of data information. The house was completely gutted and renovated, but I'm not sure that was taken into account.
Is there anything I can do?
I could get a personal loan, but a $15k personal loan seems a bit much.
Perhaps I could ask my parents to let me borrow against their equity?
I can't think of any other options.
ry another lender who has more amenable valuers.
Your broker should have one up his sleeve for you.
I certainly agree with Simon but would also say that i have also had a couple of other valuations back from client buying in Springfield in the last couple of weeks which have come in a little lighter than the purchase price.
Who was the valuer. ?
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My broker has tried another lender, but they use the same valuer, so he is trying some other lenders.
The valuer is having a look at a recent sales report from the agent, but I doubt that will get the value up enough.
That said… perhaps the Springfield/Camira area is overvalued ?
On the lines of this topic is it a done thing to make use of loan providers valuer ahead of time to negotiate the price with the seller?
A recent valuation shortfall recently won one of my customers a better deal by 15k as we organised another valuation that came in short too. The client was then able to negotiate with a strong argument with the seller that it was over priced and won.
Another time the place was extremely undervalued and as we chose again to organise and independant valuation we were able to get the lender to review their initial valuation and the loan was processed. We used a valuer from the lenders panel so that it would hold more weight.
An independant valuation can be a small outlay if you are sure there is good value. If you organise through your broker you may even get the valuation a bit cheaper
Looks like this purchase has fallen through.
The lender (St George) will not let me go through another valuer. I challenged the valuer with a comparative valuation report from the agent. He checked out the other properties, but will not budge.
The other lenders offering the same loan type (100%, rate at or under 7.55) all use the same valuer in that area.
The seller will not budge on price.
It looks like I will have to go back on the house hunt now.
Hi
I assume you want this house despite the variation in value to the sale price. 15k is a very small variation however as I don't know your financial situation your problem might be that you want to borrow 100% and don't have the variation amount to cover the sale price ie the 15k. Depending on your overall equity some lenders will loan above 100% (and you just have to say because you want to spend 15k to improve it even though of course you don't do it) but you need to go outside the square and go online to find a broker to find a lender to suit your needs.
Carpe
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