Getting bank valuation prior to offer or contract?

Am considering putting an offer on a property, however I would like to get the bank valuation prior to signing a contract/ settling, to make sure it is around what I'm willing to pay as I don't want to have to pay more than the 20% deposit. Is this possible and if so what is the best way to go about it? Should I put it in the offer terms?

 

No it doesn't make sense to get a bank val. You can get independent ones if you want.

if using a 20% deposit, you may have COS options (i.e. no bank val required at all).

 

A bank valuer will need a completed contract of sale first

 

The bank/ broker will only do the valuation after signed contract

what's COS options?

 

Contract of sale. Some banks have a niche where they take the contract purchase price when LVR is at or below 80%.

 

1. Get broker/banker/REA to provide comparable sales, should be able to get idea of market value from this.
2. Put offer subject to finance if required

 

There's been numerous threads on this topic, here's the most recent:

How to get Property Value evaluated by Lender, in advance of signing Contract?

In summary, getting a valuation prior to purchase is of very little benefit and has the potential to sabotage the finance application.

 

Thanks, so subject to finance could include whether the bank valuation is similiar to price?

 

The finance clause covers the valuation. No need for a separate clause.

Statistically speaking, there's a lot of things far more likely to go wrong in a property purchase than the valuation.

 

This would entirely depend on the wording of the clause. Subject to finance doesn't mean you can pull out if the valuation is short, but only if the finance is not approved - which it could still be.

 

I recently saved a client 70k on a purchase price by ordering an upfront val and then using it as leverage to get the price down via the builder who was selling the display home.

This was a unique set of circumstances so isn't a blanket approach but can work. Have done it on a few occasions and best in a dowm market when competition is low or non existent.