Help Needed - Vacant Block

Discussion in 'Loans & Mortgage Brokers' started by AndyH, 26th Jan, 2018.

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  1. AndyH

    AndyH New Member

    Joined:
    26th Jan, 2018
    Posts:
    2
    Location:
    Melb
    Hi Guys,
    I am a newbie and hoping I can get some assistance.

    I have been conditionally approved to buy a block of Land in Cranbourne East subject to valuation of the block and there is a shortage of titled blocks in the south east ready to build on.

    The lender has appointed a valuation company to do the valuation and it has come back short.

    The block purchase price is $345,000 and they are trying to tell us the block is only worth $300,000 (good luck finding a titled block for $300,000 in Melbourne that is flat and not under power lines)

    The 6 blocks around me have sold and settled and my price is bang smack in the middle of the range.
    -$330,000
    -$330,000
    -$350,000
    -$355,000
    -$355,000
    -$360,000

    Apparently the Valuer has had issues finding comparable sales and has used a block of land that sold in Clyde North in August 2018 which I have a feeling was not titled that was sold for $300,000/ $310,000.

    We have provided a letter for the real estate agent confirming the above sale/ settlement prices and dates (All settlements in Dec 2017 and Jan 2018) and submitted this to the lender.

    Any advice would be great.

    Kind regards,

    Andrew
     
  2. tobe

    tobe Well-Known Member

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    18th Jun, 2015
    Posts:
    1,814
    Location:
    Melbourne
    Get a build contract. Valuing as house and land together usually provides better results.

    Then get a couple of vals done. With deferent lenders thru your broker. Or walk from bank to bank and fry your credit score.

    Don’t waste time trying to get this valuer to change their mind. They can’t use developer sales as evidence, only resale blocks, and they all get sold cheap due to death divorce or debank.

    Seriously, get a build contract. It manages a lot of other risks too.
     
    Ethan Timor likes this.
  3. tobe

    tobe Well-Known Member

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    Note, those 6 blocks may have those sticker prices, but they are very often sold with rebates or gifts attached. This is how developers try to show prospective purchasers price growth.
    It doesn’t wash with the valuer.
     
  4. sash

    sash Well-Known Member

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    Sydney
    Idiots valuers...I had to challenge a val for my officer property ...too many idiots who have not experience. Find evidence of sales...and provide it to the bank....and threaten to sue them for incompetence...

    I pushed very hard...in my case I bought my block for 144k...and I had some idiot newbie telling me it was not worth that when you could not find land under 200k....in the end the manager got involved and admitted their mistake. The total build cost is less thsn 320k...I have been offered 560k on completion to sell it.

     
  5. AndyH

    AndyH New Member

    Joined:
    26th Jan, 2018
    Posts:
    2
    Location:
    Melb
    Thanks guys,
    I am waiting on my build contracts but have my quotations signed for the build costs which the lender has.
    It is really annoying as I have been pre approved for the build as well.
    I have asked the Broker for a copy of the report and details of the person who has done the report as I am thinking about seeking legal advice if I miss out on this block as you cannot get a block of land titled for $300,000.
     
  6. tobe

    tobe Well-Known Member

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    18th Jun, 2015
    Posts:
    1,814
    Location:
    Melbourne
    Stop waiting for your contract and let the builder know you need the contract this week or your walking. Seeing a copy of the val report won’t help you. If your broker hasn’t ordered vals with other lenders, get a new broker.
    There’s no legal remedies. It’s just you missing settlement and paying late penalties and a notice of rescission and or losing your deposit.
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    14th Jun, 2015
    Posts:
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    Location:
    Gold Coast (Australia Wide)
    TB is being very humble here ..........

    100s if not 1000s of iterations of the same stuff you are going through - one cant pay for that advice !

    ta
    rolf