NSW Newcastle 2021

The auction guide was too high during the campaign, buyers at the moment are assuming the owners are wanting 10% more than the top end of the guide so quoting $2.1m - $2.3m cooked it.

 

With prices having jumped so much in past year and even past 4 months, does anyone know if banks are generally keeping up with valuations and in turn borrowing? For example, the place in Waratah that sold recently for 830k at auction which was 230k above the price guide... would it be likely the bank would value the place at 830k or closer to the 600k guide do you think? Or even more extreme the above example that went for 1.53m when guide was 950k?

 

I think this is a great question, and one I've had in the back of my mind as I buy/ negotiate. Ive had a few discussions with brokers and sales agents to get a feel for what they are seeing, with pretty much all of the feedback saying the valuations are coming back at contract price, but with a high risk rating.

Would be keen to hear what the brokers are seeing...

 

Agent school 101. Guide it low and watch it go. Guide it high and watch it die

 

High risk rating implying what from the borrower's end?

 

For some reason if the home sells at auction valuers haven’t got an issue, I have had on two occasions in the past 3 months with an offer being accepted prior to auction with banks valuing it for less than the purchase price.

 

Hey team,

Just as an fyi, the reason why banks/valuers don't have an issue in agreeing to live auction price results as the final loan valuation it is the final 'market price' which has been discovered between buyers and sellers.

So if you buy at auction you should be right with a major bank val unless you have a very risk-averse vanilla lender like a Newcastle Perm.

 

Also might run into trouble if the property you're purchasing is higher risk; i.e. unit in high density block, OTP etc. But agree with what others are saying in that auction purchase price are almost always being met for the reason @TylerJamesson mentioned. Not surprised that some of the valuations have come in under for you @tomlemke with some of the crazy results coming in. Like that one in New Lambton that initial guided for $880k & went for over $1.6m (ludicrous for what it was). Can't see how that could possibly have met bank's valuation.

 

Ahh so there is a positive to auctions! Thanks heaps for the heads up

 

Also can run into issues for people building new homes in new estates.. at the end of a boom banks generally tighten up massively on valuations of land + build.

 

Well there you go... $2.27m to a couple from Sydney who saw it Monday. Full disclosure now its sold; it was a close friend's house. I was trying to get some honest feedback from the group, so thanks everyone!

https://www.realestate.com.au/sold/property-house-nsw-hamilton-136007710

 

wow, great result for your friends.

Sydney money is definitely pushing the prices up around here!

 

Woweee and old miners cottage on 500 squares - renovated expertly of course. Good for those people!

 

And this nice little terrace on Lawson Street Hamilton which needed a bit of an update bit had good potentially sold over the weekend for $1.6m+ according to the agent at STONE on 248sqm. Roughly $6400 per sqm.

I wonder how many of these cute inner-city places might turn into Airbnb's given local travel is thru the roof?

https://www.realestate.com.au/property-house-nsw-hamilton-135956358

 

Couple of recent in Stocko that have been pleasingly stunning ie .... https://www.realestate.com.au/sold/property-house-nsw-stockton-136116226

We've been found!

 

Absolutely no words man hahaha. Good for these people, good!

 

Unit 4, 3 may street mayfield selling offers over $700,000 (rental for the past 12 years).
Unit 3, 3 may street recently sold $622,000 was sold many times in the past 4 years (every 12 months). That's concerning. ?
Massive Moreton Bay fig tree at the back of unit 4, almost touching the back fence , belongs to the medical centre behind the unit 4, 3 may street.

Any known issues with this property? Unit 4/3 may street, mayfield

.that's a lot of money to be spent on a 2 bedroom townhouse. If anyone knows anything. Much appreciated.

 

304 Parkway Avenue, Hamilton East, NSW 2303 - House for Sale - realestate.com.au

Underquoting you say

 

Used to look out at these houses from my Biology class at SFX lol

 

Is this a PPR for you or an IP? Regardless there's absolutely no capital gains value whatsoever here, if that's what you're after. It's not good value in general...