State Valuation vs Bank Valuation

We've started the process of building our first home. For our loan application, the bank valuation on our land, which we purchased 16 months ago, came back less than the state government site valuation, completed 7 months ago. Is this possible? We paid less than the current site valuation when we purchased the land but all research so far indicates that the bank valuation always comes back higher as the state valuation is applied conservatively. Any advice will be appreciated. Thanks.

 

Not necessarily, bank valuations are valued at the date of inspection based on the recent (6mths) sales evidence available comparable to your property.

 

Thanks Thomacino. In this instance, there are no comparable sales within the past 6 months. My query is focused on a bank valuation lower than a state valuation (council valuation) rather than market valuation and if this is common. All my research has confirmed bank valuations can be less than market value but I can find no examples of them being lower than the state evaluation.

 

I've found state and council valuations to have zero use in terms of actual valuing of a property. Sure they tend to be less than the real life valuations - but if there's no other correlation, then its useless.

 

You're comparing apples and oranges..
The purpose of the two valuations are for two different purposes.. i.e. mortgage finance for prudent lending purposes and land value for rating purposes

 

Thanks Rolf. I would've thought so too. They've told us that the land valued at a little higher than what we paid for it (still less than dnrme valuation) but the value of the house when built came in less than the build cost. I've asked for specifics but all I'm told is it's due to comparable sales. It's a recent subdivision, we will be one of the last to build & there are no comparable sales. I've also been told that this particular valuer is undervaluing most properties at the moment. So, we have decided to try another lender who will hopefully use a different valuer.

 

Thanks Thomacino. I appreciate your advice.