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How long after settlement do you ask for another valuation?

Discussion in 'Property Finance' started by mja, 13th Nov, 2015.

  1. mja

    mja Well-Known Member

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    Say you purchase a property well below market value, how long does the forum collective typically wait before going back to the bank to revalue and top up the loan to redraw the increased equity out?
     
    Taku Ekanayake likes this.
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Typically, lenders won't look at revals under 6 months from purchase.
     
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  3. Xenia

    Xenia Adelaide Property Manager Business Member

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    When there is enough equity built up in the property to warrant a revaluation
     
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  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    There's no straight forward answer.

    Some lenders will require 6 months before lending again - some will lend straight away. Some will allow for an upfront valuation to be ordered whenever the broker likes - others have timeframe restrictions and/or require a good explanation as to why a valuation should be ordered so soon after settlement.

    Also - valuers will typically look at the recent sale price and if it was only 6-12 months prior then they don't often increase the value much beyond what you paid unless you've made significant improvements to the property.

    Cheers

    Jamie
     
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  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    ANZ is good - I did a reval on the day of settlement once - about 2 years ago. And it come in higher
     
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  6. Elives

    Elives Well-Known Member

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    which lenders do straight away? cba anz westpac?
     
  7. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

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    One of the issue with the 3 you have mentioned Elives is that they often use their own internal method of Modelled Estimating and therefore difficult to trigger a full valuation even if you believe the property was a buy below market value.

    Cheers


    Richard
     
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  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I think westpac have a 6 month wait policy too.
     
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  9. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    They don't like it - but you can force the issue without too many troubles.
     
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  10. AlbertWT

    AlbertWT Well-Known Member

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    @Jamie Moore So after a cosmetic reno and some fix & repair, is that good enough reason to ask for the bank to do the re-valuation ?
     
  11. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Yes, it is a good enough reason and something I have done a number of times in the past. One of the issues that came up consistently, was they wanted to know how much I spent on the renovation (I presume so they could work out an increased value). But this is the last thing I wanted to tell them as I was looking for a $2-3 increase in val for every $1 I spent on the reno.
     
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  12. BKRinvesting

    BKRinvesting Well-Known Member

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    So how did you normally handle that situation? Add a few extra $$s to the estimated cost?
     
  13. York

    York Finance Broker Business Member

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    I just wonder in this example does the lender ask casually to assist/speed up in the reval or is it a bit more formal with proof of expenses etc. I hope not the latter.
     
  14. D.T.

    D.T. Adelaide Property Manager Business Member

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    I've done a reval straight after settlement on a property i fixed up during settlement.
    Others, bank normally makes you wait 6-12 months in my experience.
     
  15. Azazel

    Azazel Well-Known Member

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    I haven't had them ask for evidence, are they able to?
    Estimate your own time and add it on?
     
  16. BKRinvesting

    BKRinvesting Well-Known Member

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    Bonus $$s for blood or tears spilled? :p
     
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  17. Azazel

    Azazel Well-Known Member

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    Oh boy, if only it worked that way.
     
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  18. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Jeez, what are you guys getting up to with your 'renovations'? ;)
     
  19. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    In this case I used the Quantity Surveyor's figures from the depreciation schedule (which were higher than actual). Unfortunately, you can't value your own labour. Val was not where I wanted it to be, but I was still able to refi out of a high interest low doc back to a regular loan.
     
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  20. BKRinvesting

    BKRinvesting Well-Known Member

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    The usual, Blood, Sweat and Tears.
    But it seems that it's only the 'sweat' part that creates equity. ;)
     
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