Hi there Rightvalue,
I remember meeting you at property investment gathering many years ago with members from this site. You have a wealth of experience and knowledge in this area.
The area is Tarneit.
Thanks
Property Valuation issue
- Thread starter Property Invest
- Start date
I remember meeting you at property investment gathering many years ago with members from this site. You have a wealth of experience and knowledge in this area.
The area is Tarneit.
Thanks
Thank you for the kind words.
Tarneit is an area I know all too well and the market there has not been pretty for a long time, even before the 2010 downturn.
I would suggest you get your lender to organise and off the plan / to be erected/as if complete valuation of the property now.
This will help crystalise where you are at in real terms rather than just speculation.
There are valuation firms that rubber stamp such purchases and you may be ok.
Not withstanding that you may get a rubber stamp valuation, it could be that the best option is to walk away from your deposit. I know it will hurt but it could be the cheapest option in the long run, especially if the market grows at less than 5% a year.
The downside is that the developer can go you for the difference between the resale price and the purchase price, less your deposit (you need to make up the shortfall).
However given that he has contributed to the fact you you could not settle due to selling the other units cheap and he will be better off with sale price plus your deposit than the other ones he recently sold, well he might not sue as it could work against him.
I still do a bit of work down there, although I gave up that area as part of my main patch a couple fo years ago.
You are not the only one in this situation and I do feel for you. Few OTP purchases made in the past couple of years in the West would actually stack up on valuation at settlement. The market downturn has caught out many who bought since late 2009. I have lost more than you have on an established IP I bought at the peak of the market.
good luck
Few things annoy me more than this.
I even find being shown around the house and being told that the room with the sink and cooker is the kitchen, the room with the bath and shower is the bathroom, less annoying than the sales pitch from someone who knows that their property is not worth the valuation figure they want, yet is trying to get me to put a high figure on the property.
Mind you other valuers may actually find it helpful, just not any valuer I have ever discussed this with.....
RV, out of interest have you ever been offered 'incentives' or threatened?
No,
And it must be closing in on 20,000 jobs by now.
I rarely ever even accept even a glass of water offered, I have been offered presents such as a bottle of wine very very rarely, but I decline any offer.
I have been in trouble recently for calling someones little lap dog a rat and accused of being unprofessional - they complained a couple of weeks later when they got the figure.
I have been abused a few times after the fact and informed that I do not know what I am doing a few more times (I never get an apology when their property later sells for closer to my figure than theirs).
One time recently I was under by quite a bit on a couple of house and land packages I valued OTP in Melton West.
Interestingly they negotiated a cut in price on the land from the developer and construction cost from the builder (no change in specs). I was asked to redo the valuation with the two new contracts and they wondered if I would want another fee .... I replied ... I just saved your client $42,000 (the other property difference was only about $27,000) and you ask if I want to be paid a mere $200 for doing the job again?
Being a 16 unit development, and having sold some recently at a discounted price would be the way the valuer would look at this. Im assuming this would be part of their procedure in obtaining a value.
The lender is not willing to get a valuation done until the property is completed.
(There are valuation firms that rubber stamp such purchases and you may be ok)
If i told you who the builder and lender is, would you know if they use a valuation firm that rubber stamp purchases like mine?
I understand that the market has come down considerably in the last 12 months or more but when a large builder decides to clear out remaining units because they have a development about to finish in 8 weeks or so, does not help my situation at all.
I thought since the property sits facing water that this would hold up in value and demand. Not the case by the looks of it.
I will be speaking to the builder today and see what they have to say about this issue.
Im sorry to hear about your loss on that property. Hope it doesnt happen to anyone.
Interesting enough, it could have been a friend of our family.
The couple purchased an OTP property in a new suburb adjoined to Melton West. They had a valuation done and it came in $30k or so lower. They panicked, contacted their solicitor, who in turn contacted the builder and the matter was resolved with the price being reduced by the builder. New valuation then stacked up.
This is according to what they told my family.
They didnt mention anything about asking whether they needed to pay for their valuation again.
Fair enough. Point taken.
I am going to continue doing this though, I actually found it beneficial for myself getting an understanding if the steps behind the val process for future Reno/purchase.
I have had a couple of valuers like me being there, in fact saying that it is nice to see Someone taking an interest.
Btw, I would never go as far as the items you refer to.
Understand about new estate and being more difficult/less variables.
Well spoke to the builder's contract coordinator today and she asked me to email her so she can have a meeting with her manager in regards to my situation.
She also confirmed receiving my email and will get back to me as soon as a decision has been made.
I can only wait and see now.
She also confirmed receiving my email and will get back to me as soon as a decision has been made.
I can only wait and see now.
