澳洲Australia property Independent Valuation Issues | Sydney


在澳大利亚 Hi all, I currently have a PPOR and 10K cash in the bank which I plan to use as a deposit for a IP early next year. Is it possible for me to place this into my PPOR loan and then redraw the 10K when Im ready for the IP and then claim the int Hi Guys, Ive found a property that has mentioned two payments coming up of $1400 to apparently top up the admin fund and 2 have just been paid. Im looking at a financial statement (basically a balance sheet) for the strata and its all a bit


Long time reader, first time poster.

Hoping for some advice/experiences in dealing with a bank valuation that has come back below the contracted price. Short story is I bought a place in Melbourne at public auction a few weeks ago. There were two bidders - a buyers advocate and me. We pushed the price up rapidly and it supposedly sold for ~25% above the reserve, 4 mins after the auction started. I understand there were 6 other parties the agent was expecting to bid - it was a unique property.

An independent valuer has completed a valuation for the bank that suggests the 'market value' is 12% below what I have paid. It references the fact the auction only had 2 bidders who were aggressive, I was previously the underbidder on a similarly priced property in another suburb a week prior, the reserve and fact I was bidding against a buyer's advocate. The valuer had been unable to find any comparable properties in the same suburb, so has used 5 properties in surrounding suburbs.

My banker (at CBA) is going to dispute the valuation/order another firm complete one, but I'm doing some work to assist her in building a case. I've:
- Found comparable properties in the same suburb sold over the last 12 months the valuer has seemingly overlooked
- Sent my calculations on how I determined value - primarily based on (1) comps (2) per sqm for the suburb (3) median price growth since the property was sold 5 years ago and (4) comps in surrounding suburbs I believe are more appropriate than those in the report.

I'm interested in anything else I can do - I'm guessing others have dealt with this problem before. Going back to first principles, I'm still struggling to work out how a public auction with willing buyers and willing sellers is not illustrative of market value.

Any thoughts/advice appreciated! Cheers.  

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Auction vals should generally come back the as the sale price.

By recommendation is to order 2 more upfront valuations (make sure you use different valuers) and have a plan b/c. You can argue the val until you are blue in the face but its unlikely (statistically) for the valuer to increase his/her valuation.

Also depending on the LVR you may be able to finance the property with a lender that has a no val policy at 80% or even 90% LVR but leave this as option d.  

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Shahin_Afarin said: ↑
Auction vals should generally come back the as the sale price.

By recommendation is to order 2 more upfront valuations (make sure you use different valuers) and have a plan b/c. You can argue the val until you are blue in the face but its unlikely (statistically) for the valuer to increase his/her valuation.

Also depending on the LVR you may be able to finance the property with a lender that has a no val policy at 80% or even 90% LVR but leave this as option d.Click to expand...
Thanks Shahnin, that's very useful advice. I'm trying to get CBA to seek additional valuations now.  

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If possible - you could look at getting it done via ANZ, STG, etc under their no val policy. If the loan/property fits within certain parameters then the bank may go off the contract of sale.

Also pass on all that info to your banker to contest the valuation - it's rare that the valuer will adjust their price but it does happen. Last week we managed to get a CBA valuation increased by $30k. Admittedly it was a refi valuation (not a purchase).

Whatever you do - don't commit to another bank until you're reasonably certain that the valuation won't pose an issue (so if they have a no val policy - then seek clarification that your application will fit within that policy).

You don't want to go submitting multiple applications right now.

Cheers

Jamie  

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When getting independent valuations I always commission a valuer, of which ever bank Im financing with, to conduct a fair open market valuation.

Then I present those valuations to bank as back up for my case if a banks valuations comes back low.

Makes it harder for them to dispute a bank panel listed valuer.

Yes, an independent valuation will cost you but from my 15 years IP experience its money well spent.

To find out who's on their panel list - simple phone them and I have found the banks to be very forthwith on the information.

I hope this helps.  

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What is the purchase price + LVR on the deal?  

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I've only seen one property come back lower than an auction purchase price, it's a very rare thing to happen. I think I've seen it about 3 times when the purchase is made via negotiation.

If the LVR is above 80%, even if your valuation appeal is successful, the CBA may not be able to use it. They used to have a quirky policy around this (not sure if it's still in place, this problem rarely occurs).

If the appeal doesn't work, the easy solution is to use a different lender, using a different valuer. This is probably more an inconvenience than a problem that can't be overcome.  

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I feel for you however I'm not sure a second valuation will be accepted by CBA's credit department if they know about the first one. It does kind of defeat the purpose of getting a valuation if they ignore the result and shop it around so to speak.

I'd be trying plan b & c upfront vals and or contract of sale policies asap. Hope you are also not tied up with X- colled securities with CBA? If so you need to act fast.  

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Thanks all - some very good tips here.

LVR is below 80% (bank requires 75% as value >$3m), no cross-security etc. - just don't want to tie up an additional ~10% of my capital for no reason.

The bank is ordering another valuation. I have 3 months to settle, so will let the process run its course - banker is confident it will get through as its rare for value to come back below sale price after an auction.  

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Property worth $3M+, there's the problem...

At this price point there's fewer comparable sales and property prices can be very much based more on the individuals perception of value, less on the market as a whole.

I'm not saying the property isn't worth it, but this is at a more extreme end of the market and that alone makes it more difficult to finance. It's for this reason that the CBA will only lend 75% rather than a higher LVR.  

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Good stuff at least you have lots of time to sort it out.  

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Sounds good TT.

Do let us know how the 2nd valuation pans out.

Good Luck.  

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Based on this I don't think you will have troubles.

My banker (at CBA) is going to dispute the valuation/order another firm complete one, but I'm doing some work to assist her in building a case. I've:
- Found comparable properties in the same suburb sold over the last 12 months the valuer has seemingly overlooked
- Sent my calculations on how I determined value - primarily based on (1) comps (2) per sqm for the suburb (3) median price growth since the property was sold 5 years ago and (4) comps in surrounding suburbs I believe are more appropriate than those in the report.Click to expand...
I secondarly independant valuation wouldn't be ordered unless they argreed that first valuation might not be right. Best of luck keep us updated on the outcome  

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Thought I would share a small success story.

Bank ordered valuation which came back lower than price paid at auction.

Told them I wasn't happy and they said they would order an internal valuation - sent them a list of comparable properties in the area to build my case.

Their valuation came in at the puchase price - all sorted :D  

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T_Trade said: ↑
Thanks all - some very good tips here.

LVR is below 80% (bank requires 75% as value >$3m), no cross-security etc. - just don't want to tie up an additional ~10% of my capital for no reason.

The bank is ordering another valuation. I have 3 months to settle, so will let the process run its course - banker is confident it will get through as its rare for value to come back below sale price after an auction.Click to expand...
Is the purchase price $3mil or more? If its $3mil then CBA's max LVR is 80% but if its more than $3mil then max LVR is 75% unless you apply for an exception to policy (doable but you not a given).

Also have plan B ready in case plan A fails.  

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Update - so CBA risk refused to get a second valuation.

Have gone to plan B via a broker. Quick question for the brokers on the forum - the bank (big 4) who we are now progressing forward with wants me to pay for the valuation as 'long form' is required. Will cost a couple of grand. Is it unreasonable if I ask the broker to rebate cost of the valuation against their commission should the loan be successfully funded? I figure a $2k rebate against a fee of over $10k is fair, but keen to sense check my logic.

Cheers  

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Some lenders charge if the purchase price is over $2.5mil as the valuer charges them a higher price but several lenders do not pass this cost onto the customer.

Which lender is this?  

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Quick side question related to the OP's situation: how does the valuer know the specific details of the auction (i.e.: how many bidders, bid history)?  

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Shahin_Afarin said: ↑
Some lenders charge if the purchase price is over $2.5mil as the valuer charges them a higher price but several lenders do not pass this cost onto the customer.

Which lender is this?Click to expand...
Yes - that's why.

The lender is NAB.

The valuer knew the finer details as he spoke to a number of agents in the area.  

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NAB will incur the cost - your broker needs to email their state manager to write it off.  

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