Bank valuation lower than purchase price

[bcoombs]

Beside the fact we are getting off topic and not helping the person who posted the original question....

If the valuation is done independently on EVERY occasion, why aren't brokers and clients given a copy? All we are told is the amount and if you don't like go jump !

Therefore getting back to the original question, the clients best bet is to go via another lender. Is it not? From a valuers point of view what are the options?

 

[Spectre]

Theres also finding out what the sales are on the val and contesting it - if you have comparable sales - which you can find out often either verbally or with the copy you have (for example CBA, ANZ let you have the copy although CBA you pay upfront.)

Then you dont go thru these issues and have time to go somewhere else from the outset as you lodge the application with the valuation

But then I'd figure that if you used a MB they would have discussed valuations with you as part of the lender decisioning.

Think in this case its a bit of a balancing act though, especially with 2 days to go. Would be interested to see how it plays out.

 

[darthhasbro]

Thanks to everyone for their input, the result was that I had to let the property go

Going to another lender was an option, but even a revised valuation from another lender may not have been the answer as the stumbling block was not the bank but the mortgage insurer. There was no guarantee that another lender didn't use the same mortage insurer who already had the lower valuation and would have disputed a higher one.

In the end, maybe it was overpriced and I got a little too excited

So for me, lesson learned, at a cost of 0.25% and my solicitor's fees

Already looking at another property but this time have had an independant valution done so I know what I should be paying, yes this will probably carry no weight with the bank or the mortagage insurer but this way I have a much better chance of not having the same problem again

Thanks again to everyone, especially Jacque, for their kind help