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!
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!