Any Way I Can Get a Property Valuation before Making an Offer on a House?

pixpotato on 16/01/2024 - 11:17
Last edited 16/01/2024 - 18:54 by 1 other user

I want to make an offer on a property but found out from my lender that they only do a valuation and verify the amount once an offer is accepted. And then it's only the lower amount they offer the mortgage on.

It's a new build that's been completed - so doesn't come up in Domain and isn't on Corelogic either.

Ideally I'm able to see what they can see as a valuation prior to making an offer. Does anyone know anyway (or anyone) that might be able to give me an indicator on the property value a lender would see?

Financial

Comments

  • bemybubble on 16/01/2024 - 11:28
    +11

    Subject to Finance clause my friend

    • pixpotato on 16/01/2024 - 11:33
      -4

      But I'll have to pay my conveyancer that way, hoping to avoid that

      • bemybubble on 16/01/2024 - 11:38
        +26

        You're buying something worth $'000s and you're worried about your conveyancing fee??

        You can't afford this property my friend.

    • angywoo on 16/01/2024 - 11:40

      Subject to finance being less than ****%

      You might be able to get finance but it could be any %

      • bemybubble on 16/01/2024 - 17:02
        +1

        Not true,

        Finance based on the contract price - so no finance, no contract. Don't need to specify.

        • angywoo on 18/01/2024 - 13:07

          Ok

          So if you are offered finance at 27% does the contract still stand?

          If so this is the reason why a capped maximum % should be added.

          • bemybubble on 18/01/2024 - 13:09
            +1

            @angywoo: Well let's peel it back a bit here:

            When you go for finance you've already worked out with your finance company what you need to settle the transaction based on the parameters provided.

            So if any of those parameters aren't met then you can't get finance. It's not a case of we're shooting in the dark and borrowing whatever

            • angywoo on 18/01/2024 - 21:03

              @bemybubble: thanks for explaining.

              so they cant say you cant get finance here at x% but you can here at even higher %?

  • Porker on 16/01/2024 - 11:39

    You could engage your own valuer. They'll do all the historical sales review and price comparisons etc.

    The banks waiting until an offer is accepted to perform the valuation makes sense. You could potentially be looking at multiple houses and/or make multiple offers and it wouldn't be sustainable for the banks to perform a valuation in each instance.

    EDIT: Ahh.. ignore above, I just saw your other reply that you're wanting to avoid spending money.

    • pixpotato on 16/01/2024 - 11:40
      -2

      Yah, don't get me wrong I understand why it's like that. Own valuer is a good idea, I like that! Thanks!

      • Porker on 16/01/2024 - 11:41
        -1

        If you're happy to pay for one, they can look at the house and give you a valuation. I've had a few performed.

        • pixpotato on 16/01/2024 - 11:42

          If you are in Vic, got any good ones youd recommend?

      • bemybubble on 16/01/2024 - 11:44
        +5

        Own valuer is a good idea, I like that! Thanks!

        So you're happy to spend money on a valuer but not your conveyancer?

        FYI the bank will use their own valuation so whatever you pay for will be redundant. And they have every right to use that valuation over yours. Which means you're in trouble.

        The conveyancers job is to keep you out of the $h!t that you exactly talking about - let them do their job ffs

  • JIMB0 on 16/01/2024 - 11:51
    +4

    Look at what similar properties in the area sold for.

  • Gunnar on 16/01/2024 - 11:54
    +1

    As above Don’t use an evaluator, regardless of what yours comes with, the bank will use their own evaluator and their outcome will trump whatever your evaluator comes up with. It’s a wasted exercise

    Don’t stress too much about this. Unless you’ve gone ridiculously over market value, the banks’ evaluation will work in your favour (ie it will be valued at what your offer is).

  • soan papdi on 16/01/2024 - 12:13
    +2

    You need to worry more about the build quality than the valuation: https://www.youtube.com/@Siteinspections

    • godofpizza on 16/01/2024 - 14:22

      we tried booking them and founded that they were 5-6 asking times more than the other inspectors were charging.

      • soan papdi on 16/01/2024 - 14:24

        Apologies, I didn't mean to recommend that specific inspector. I feel inspections are more important than a valuation. Even if you buy the house at a bargain, it might eat your savings over the next several years.

      • Typical16-bitEnjoyer on 16/01/2024 - 14:53
        -1

        Yeah but other ones don't have YT channels

  • Danger on 16/01/2024 - 12:18
    +2

    If bank's valuation comes lower, you can re-negotiate the offer (price) or walk away (assuming it's subject to finance).

    • boomramada on 16/01/2024 - 15:13

      OP don't wanna pay for conveyancer lol

      If I was a OP, I would definitely get the conveyancer not valuer, since its a new build lol

  • JimmyF on 16/01/2024 - 13:29
    +2

    Any Way I Can Get a Property Valuation before Making an Offer on a House?

    Corelogic reports can be found for 'free', but its a guesstimate at best.

    Honestly doesn't really matter what your value comes in at, it is what the bank comes in at.

    Put your offer in as subject to finance. That way you can pull out.

  • payless69 on 16/01/2024 - 17:54
    +1

    Find like a retired builder and pay a few hundred, it might be well worth it.
    Somebody to spot shortcomings like drainage, plumbing, hot water and climate control.
    Even exteriors paint or shrunk patios where puddles may remain.

  • lisalt on 16/01/2024 - 19:41

    I put the condition "subject to offer not coming below valuation price by the bank" on mine, as pre-approval had already been secured

    • pjetson on 16/01/2024 - 21:03

      Did you mean to write "not coming below"?

      • lisalt on 19/01/2024 - 13:52

        Probably I should have worded it as bank valuation not coming in lower than the offer price.

  • Ryk on 16/01/2024 - 20:09

    you buying the place will set the price.

    • wannagrababargain on 17/01/2024 - 17:02

      This. Unless you horrendously over pay.

      You might want to have a bit of extra deposit up your sleeve just in case though.

      Wrt subject to finance ..conveyancer should already be engaged from the start to review the contract and request changes. Do you actually want to buy this property? You don't pay the conveyancer until settlement anyway..

    • lgacb08 on 19/01/2024 - 13:29

      Problem is the potato is too cheap to pay for anything and he know hell lose sleep for 6 months if someone tells him he pay $100 over the deemed value of the property.

  • lgacb08 on 19/01/2024 - 13:30

    Why wasting more time, looks like you're not gonna get the property for the 6th time. There's reason conveyancers start charging you to review the contract.

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