Help! Buying/bidding at auction with only prelim approval- would valuation help?

Hi guys would appreciate some help regarding buying a property when we only have preliminary approval in place. It's for our PPOR (NSW) and we have over 20% deposit. Our lender has advised that if we're signing a contract for a property to be purchased through negotiations to put in a "subject to finance clause" pending their valuation of the property, or if we're buying at auction that they don't like getting valuations done prior as it will generally be the market price. Does this sound right or should we be paying to get a valuation done through the lender beforehand for every property we're serious about buying? I've been advised they're around $500/each based on the price range we're looking at.

The issue with adding the subject to finance clause is that the area we're looking at is already extremely competitive as it is, where most properties are sold through auction, so even if a vendor agreed to an offer beforehand having a condition like subject to finance may make our offer uncompetitive I think. Otherwise do we just bid at auction and assume that the valuation will come through as the price someone was prepared to pay at auction?

Any input/suggestions appreciated. Thanks!
 
With auction you go unconditional on the purchase at the time you're successful. Usually the property is valued at purchase price. There have been some very rare instances when this isn't the case - thankfully I'm yet to experience this personally.

Cheers

Jamie
 
Our lender has advised that if we're signing a contract for a property to be purchased ..... at auction that they don't like getting valuations done prior as it will generally be the market price. Does this sound right ....?

Yes, this sounds right. Just go to the auction and buy with confidence (not exuberance).;)

No agent will sell to you mid-auction campaign with any "subject to" clauses. Pre-auction vals are not recommended as the auction price is the market valuation on the day, and if the val prior to auction is lower than the auction price paid, you can have an issue getting the valuer to change his/her val.
 
If your finances are ready to go then just go and buy at auction - valuation will not be an issue. It will be what you paid.
 
No agent will sell to you mid-auction campaign with any "subject to" clauses.
I had an offer accepted pre-auction subject to finance,b&p and offered a short settlement..It depends on the the vendor/s situation,marketing campaign ie:taken off market relisted,delisted,relisted etc,deceased estate,mortgagee etc etc.
 
Back
Top