Hi Everyone,
Recently purchased for $212k. Brought well in my opinion to the tune of 10-15%. Spent close to $10k in reno (Kitchen, floors, painting, landscape, tidy etc).
Just got a valution back as part of a reval/finance, and they have valued the place at $220k.
Rent is $280pw, RE agent puts the value of place at market ($265k). Have done my own research over last 6 months on area and I believe a fair market price of $250-$260k.
I am caught between a rock and hard place with Broker not willing to push back on Bank and negotiate this Valuation. I understand the banks position to have a minimum valution, but I want the chance to enter a dialog with the bank to discuss the reval and get it closer to the $250k i think it is worth.
I am confident in my abilities to negotiate etc...
I spoke with valuer, and plugged property even before it was performed. Tenant and PM presented property in its best light, and I inspected it before reval to ensure this.
Broker suggested that the bank is covering their arses, and the valuer has built into the valuation a buffer due to possible market downturn and unwillingness to be liable to be sued (I think this is disgraceful, as shouldnt a valuation be the value NOW, not in the future due to speculation????)
Options:
* One, take the valuation and the brokers word that nothing can be done to push back on bank (ie. he says it is not possible to view the actual valuation)
* Go outside the broker channel, and try and set up direct meet with bank to push my position.
* Pull the plug on bank, and look to new lender.
Can some of you give some idea of the dynamics? the position i am in, and any suggested courses of action?
I can name banks if anyone thinks necessary to determine if this is a normal technique!!!
Any pointers would be greatly appreciated!!!
Recently purchased for $212k. Brought well in my opinion to the tune of 10-15%. Spent close to $10k in reno (Kitchen, floors, painting, landscape, tidy etc).
Just got a valution back as part of a reval/finance, and they have valued the place at $220k.
Rent is $280pw, RE agent puts the value of place at market ($265k). Have done my own research over last 6 months on area and I believe a fair market price of $250-$260k.
I am caught between a rock and hard place with Broker not willing to push back on Bank and negotiate this Valuation. I understand the banks position to have a minimum valution, but I want the chance to enter a dialog with the bank to discuss the reval and get it closer to the $250k i think it is worth.
I am confident in my abilities to negotiate etc...
I spoke with valuer, and plugged property even before it was performed. Tenant and PM presented property in its best light, and I inspected it before reval to ensure this.
Broker suggested that the bank is covering their arses, and the valuer has built into the valuation a buffer due to possible market downturn and unwillingness to be liable to be sued (I think this is disgraceful, as shouldnt a valuation be the value NOW, not in the future due to speculation????)
Options:
* One, take the valuation and the brokers word that nothing can be done to push back on bank (ie. he says it is not possible to view the actual valuation)
* Go outside the broker channel, and try and set up direct meet with bank to push my position.
* Pull the plug on bank, and look to new lender.
Can some of you give some idea of the dynamics? the position i am in, and any suggested courses of action?
I can name banks if anyone thinks necessary to determine if this is a normal technique!!!
Any pointers would be greatly appreciated!!!