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

Hello,
Is there a way to get estimation of property value from bank etc in advance, before even making offer or signing contract of sale. This question is from buyers perspective and purpose is to avoid gaps in bank's estimation against the offer to be made.

Best would be if there is no cost involved for such evaluations.

 

Don't do this. If your purchase price is different from the valuation result (and it probably will be) it will create problems with the finance application. You're essentially shooting yourself in the foot.

99% of valuations simply agree with the purchase price. If you've already had the bank do a valuation that disagrees at all, the bank will rely on that valuation. Even a valuation that's higher than the purchase price can create problems.

It's quite common for people to be anxious about the valuation. In my experience with a property purchase, there are many other things people need to be a lot more concerned about that have a higher probability of creating problems.

 

You could give the bank a signed contract, but not exchange contracts (in states where exchange is needed).

But as Peter says, what if you change the price you are willing to pay?

 

O really, I was not aware of this. It is a good insight. Two points here:
a. how come higher bank valuation creates problem?
b. What are other things that you think need more attention to avoid future problems?

 

Thanks. What is meant by exchanging contracts. Is it applicable in NSW also?

 

It's rare but we actually a valuation come back higher than the purchase price about a fortnight ago. Not a huge issue, but the bank didn't take it at face value and it caused a delay which was a problem as we had a finance deadline to meet.

There's dozens of things that can go wrong with a finance application. Valuation shortfalls are quite rare in the grand scheme of things.

 

Agree with above - don’t get the property valued by the lender prior to having an offer accepted.

However - you should be able to request a desktop report (Residex etc) from your broker/banker which provides an estimate value of the property.

Cheers

Jamie

 

Exchange:
You sign a contract and give to the vendor. Vendor signs a separate contract and gives to you. This is how it is done in nsw