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  1. #1
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    Default The purchasers bank valued property under agreed selling price?

    Has this happened to anyone? What did you do?

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    Bank valuations are more conservative, and generally don't reflect "market value".

    It hasn't happened to me, but when I did a lot of conveyancing, I did see sellers reduce their price to meet a shortfall in buyer's finance.

    I would get some independent advice as to value if I was you, ie. could you find another buyer who will not have this problem with their bank or is the sale price a bit too high. Your own agent will have a vested interest to push the current sale through, as they get their commission quicker that way.

    In Queensland, you can get a registered value to give you a written value for (from memory) around $500, depending on location. I imagine it's much the same in other states.

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    It's very common in NSW - especially at auction. Banks are far more conservative when valuing properties. It's more of a problem when you are borrowing above 80% of the purchase price.

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    Quote Originally Posted by MsMummy View Post
    Bank valuations are more conservative, and generally don't reflect "market value".

    It hasn't happened to me, but when I did a lot of conveyancing, I did see sellers reduce their price to meet a shortfall in buyer's finance.

    I would get some independent advice as to value if I was you, ie. could you find another buyer who will not have this problem with their bank or is the sale price a bit too high. Your own agent will have a vested interest to push the current sale through, as they get their commission quicker that way.

    In Queensland, you can get a registered value to give you a written value for (from memory) around $500, depending on location. I imagine it's much the same in other states.
    I don't think the sale price is high and our RE agent told us he has sold similar properties in our area for more than our agreed price. He wants to see what other properties they valued our property against. He is going to contact their bank and see whats going on and also see if they will do another valuation. The person that did the valuation didn't actually go see the property just done from a computer. The current purchasers have asked for a reduction in price to meet the banks valuation. I'm going to wait and see if he can speak with the bank first before we do anything.

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    Quote Originally Posted by missie_mack View Post
    eeek! Was it a big difference?
    $11k

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    It happens to us all the time, you can definitely ask the bank to re-value ( especially if they didn't see inside) how much was the difference? Just ask your agent to get comparable settled sales to give them, $11k is nothing!!! I've had valuers go up another $50k no problem , definitely talk to the bank!

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    NancyBlackett  (22-02-2012)

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    Quote Originally Posted by Elijahs Mum View Post
    It happens to us all the time, you can definitely ask the bank to re-value ( especially if they didn't see inside) how much was the difference? Just ask your agent to get comparable settled sales to give them, $11k is nothing!!! I've had valuers go up another $50k no problem , definitely talk to the bank!

    It's so frustrating!!! The bank has taken 4 weeks to do final approval for the purchaser and now they do this. My agent said he will show them comparable sales in the area and hope they will do another valuation.

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    Also ask to see the copy of the valuation ( it could be buyers being sneaky!) I've had vals come in $10-15 k short before and you just ask the buyers to pay the difference

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    Quote Originally Posted by Elijahs Mum View Post
    Also ask to see the copy of the valuation ( it could be buyers being sneaky!) I've had vals come in $10-15 k short before and you just ask the buyers to pay the difference

    Good idea. Thanks for your advice.


 

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