Banks that do valuations based on contract price for a sale?

We are looking at a property in Melbourne and have agreed to a price with the vendor (after a fair bit of back and forth). However, finance is an issue.

The only concern, which is preventing the sale, is around the valuation on the property we wish to buy, rather than any servicing issues. The valuation from the banks the brokers we've used have tried have had the valuation on the property we wish to buy coming in 100k+ short.

After permits to subdivide, the property will be worth a lot (more than the agreed price IMO). Properties around the area that have been sub-divided on smaller blocks than this are asking around the same price we've agreed upon with the vendor. So the issue is that at least one banks is, somewhat logically, valuing the property without factoring in subdivision. I'm aware of some property reforms coming out later this year (haven't been announced for this particular council) but I think this bank is being very conservative.

If we could get a bank to get base their valuation on the agreed, contract price, we'd be fine. Anyone know of any banks, credit unions or brokers who are more likely to do that? I don't want to have to send out half a dozen or more applications to various financial institutions if I know I'm wasting my time when I can narrow it down. We'd also like a normal interest rate (ie no commercial / lo-doc loans). Any info would be greatly appreciated.
 
ANZ, CBA and Adelaide bank comes to mind for sub 80-90% loans depending on location and price ....a few more banks for <80% lVR.

Best to speak to an experienced broker who knows the no valuation lender's policy inside out ^ Aaron will be able to help.
 
It's pretty easy to get a valuation of the contract price. A low LVR (80% or less) often means that no valuation is performed at all.

Up to 90%, quite often lenders will simply use the equivalent of an RPData report. If your purchase price is within a reasonable variation of that report, they'll just go with it. If it's outside of the report parameters they'll order a full valuation.
 
If buyer/agent/broker are all in the same state then there's a good chance ANZ will go off the contract - and your broker will be able to work that out before submitting an application by playing around with their online valuation portal.

St George/BoM say that they'll go off the contract for deals up to 90% as well - in reality, it doesn't seem to happen too often and they end up requesting a full val (in my experience anyway).

Cheers

Jamie
 
um, why do you want to purchase for higher than the banks valuation by the way? And why is hiding the true valuation from the bank the solution rather than tipping in more of your own cash?

Just playing the devils advocate.....
 
um, why do you want to purchase for higher than the banks valuation by the way?

Prob because the anticipated end value after subdiv/development will be higher?

Otherwise, I'd be walking away if vals are consistently saying it's worth a lot less than what you're paying.

Cheers

Jamie
 
Prob because the anticipated end value after subdiv/development will be higher?

Otherwise, I'd be walking away if vals are consistently saying it's worth a lot less than what you're paying.

Cheers

Jamie

Spot on there, Jamie. Hey, the banks don't always get it right (see GFC) but I'm also guessing they're being more conservative along with some banks assuming no subdivision will take place when valuing some properties (depending on their appetite for risk)?
 
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