I’m looking at a property on sydney northern beaches and the owner (who is my partners relative) has informed us of her independent valuation which has gone up a lot from when she lat had it valued about a year and half ago. I’m not a good negotiator and first instinct is to walk away. Should I get my own valuation? Does the bank do this if I say I’m interested in buying? It was to be a private sale but now she has changed or hinted at $150000-$200000 more. Any advice?
Is the price being asked market? That is, how much are similar units selling for? Why are you interested in this unit? Has the price also dropped from the peak? Property in Sydney has been coming off the boil for the past 18 months.
There are some simple and low or no cost sources for some pretty decent data. Most brokers and some lenders can help with this A lender will only do a purchase val typically once you have a signed contract - while there are ways to get around this in NSW, its best NOT to go in that direction. What a bank will value something at, doesnt always mean market value................ either high or low ! ta rolf
She was told $1.2 million by a valuer about a year and a half ago. She has now said a new valuation has come in $1.3-$1.4 million. It’s in the Bayview area. 70’s house with little usable land due to slope. Not a great deal of sun and a drainage easement through property. I like the peaceful aspect and it’s about 400 metres from water but no views of that. It’s not modern at all but feels good for myself. My main concern is how do I get a valuation that’s realistic I guess.
I'd pay for an independent valuation, especially as it sounds like there might be some issues about pricing. You will have this relationship for a long time, so keep things business-like.
It’s not just about a single valuation. Not much sun, drainage easement and little usable land are all drawbacks and may limit options or resale value. You must compare it to similar properties for sale nearby. Don’t fixate on just one property, have a good look around to ensure you are making an informed decision. Marg
I wouldn't be taking "their" word for it.... Ask to see the actual valuation ! If they can't email/produce a copy within 24 hours then they are lying to you
My finance approval was conditional pending bank valuation, which had to be done before we could exchange contracts. Is this not the norm in NSW?
Nope rare to have finance clause in NSW. One often exchanges contracts subject to cooling off, which may have a .25 % penalty of the purchase attached to it if one doesnt buy ta rolf
There has to be more to this story otherwise why buy a property with issues if you can buy a property without issues? What are the comparables and then what else can you get with what she’s asking. If its a matter of value for her because of other reasons (no agent fee, no cost of listing, convenience et) then whats that worth?
Yes, we didn't have a finance clause in the contract - it had to be approved prior to, which was subject to the bank valuation. My query was that the OP seems to think that they will have to organise a valuation, or take the vendors valuation at face value. Obviously different if you are a cash buyer, but my mortgage was subject to a bank valuation, which means that it's built into the sale?
You should do that unless you are getting at least 10% under market price. Since you cannot work out market price I don't think you are ready to buy as the research has not been done. Seems like like this person is too flakey to deal with anyway (What stops her neighbour telling them its worth 2 mil now).
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