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.
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.