What does this mean for the valuation?

Discussion in 'Loans & Mortgage Brokers' started by BuyersAgent, 4th Mar, 2019.

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  1. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Just had a client deal go through, massively motivated vendor, original ask price as $750k, they dropped into the mid $600's, during ad campaign, we purchased for $570k, the loan got formally approved this morning a few days after the val.

    The broker sent me a cryptic message about the bank valuation, as he had asked the lender what price it came in at (assuming purchase price) and they responded by calling him saying they refuse to release the valuation price.... odd. He said they have never responded to him like that.

    The formal approval letter to buyer includes this: Must be insured for min $640k... does this mean the val was most likely $640k?

    I have had a few client deals come in above purchase price before where they just release the price to us and then state that they lend on purchase price not on val. So the client always gets the smaller amount but before they have at least told us the price.

    Refusing to release the price when asked I haven't come across before so this response is a first for me. Obviously there was no concern on the downside as the client got the loan.

    Maybe the valuers or brokers who have seen this before can advise?
     

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  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Some lenders are getting protective of vals.
     
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  3. DianaQLD

    DianaQLD New Member

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    Wow - very cryptic indeed. Lenders are super protective of their vals. Some don't care what the insured amount is so long as they are noted as the interested party - other require say 75% of the purchase price - so it can possibly be anywhere in between! You may never know..
     
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  4. Redom

    Redom Mortgage Broker Business Plus Member

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    Val would likely have been at purchase price if its a purchase deal. Not sure why building insurance amount is so high, but have seen it well above actual build value before.
     
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  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    replacement value, which can sometimes be more than land and current buildings

    ta
    rolf
     
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  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Some of the smaller lenders that don’t allow brokers to order upfront valuations can be funny when it comes to sharing the info in the val report.

    Sounds like you prob got your client a good deal :)

    Cheers

    Jamie
     
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Surely the valuation can be worked out from the LVR?
     
  8. Eric Wu

    Eric Wu Well-Known Member Business Member

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    we use to get one line clip from Liberty or Homeloans ( now Resimac) re the valuation, if ask the BDM, they can verbally tell us the valuation, but never give us the full valuation (even clients or us paid for them)

    seems like you got your client a massively discounted investment, everybody is happy. :):)
     

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