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When Life Deals you a lemon, make lemonade

Discussion in 'The Buying & Selling Process' started by cheekykoon, 29th Sep, 2015.

  1. cheekykoon

    cheekykoon Well-Known Member

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    just when everything is going smoothly ready to settle on the OTP, the valuation comes in short. Taylor Byrne valued the property 33k under and a second valuer from CBRE valued the property at contract. What a vast difference the 2 made.

    Considering the 2, NAB (Taylor Byrne) offer me 80% and Westpac (CBRE) offers only 70% loan. What would have you done if you were me?

    Taylor Byrne had stood by their valuation and no review of their valuation. The subject property was valued as a 3Bedroom when CBRE valued it as a 4Bedroom. Bottled gas (Taylor Bryne) when in actual fact it had Town gas piped in, such a big mistake.

    I thought when life deals me a lemon, I'll suck it all up and in 6 months' time, I'm good to go again when a revaluation and extract the equity out. Perhaps the only issue would be the loss in tax deduction from the higher downpayment.

    Would anyone have better lender at 80% compared to NAB? urgent help needed as I'm due to settle in 2 weeks.
     
    Be Developer likes this.
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Is there any reason (security, maybe?) that you're only looking at 2 lenders? If not, order a heap of vals from different lenders through a broker and see what comes up best?

    How long ago did you sign the contract?
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    It's impossible to provide a decent response without knowing the finer details.

    Why not hit up Jess above to do some investigating.

    Cheers

    Jamie
     
  4. neK

    neK Well-Known Member

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    You're down to two weeks. Go with a lender that KNOWS the bank policies inside out.

    My sister had the same problem, except it was a house and it was undervalued by 75k.

    A valuation was ordered by the head broker with STG when it could have been taken at contract price.... this was told to me by another broker. I questioned my sister's broker who matter of factly stated that this was IMPOSSIBLE.... all the while I was looking at a screenshot my broker had sent me from the STG site stating it was possible - Basically the policy had been updated a few months ago and my sister's broker wasn't aware of it.

    Anyway, if you're after someone who can bail you out of this situation in such a short time frame, contact MickC from Shapehome loans - he's on the forums too.

    Otherwise, just take the 80% lend with the lower valuation price.
     
  5. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Sounds like there is a specific reason you need to go with Westpac so lets assume that you need a solution to go with westpac?

    If so then check if Taylor Byrne is on the west pac's panel of lenders - get your broker or banker to order an upfront valuation and specifically request that Taylor Byrne inspects the property. You can do this with Westpac.
     
  6. cheekykoon

    cheekykoon Well-Known Member

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    Hi Jess,

    I'm on a non resident loan and each bank can only do 1 valuation in 6 months. So I need a 80% LVR and only NAB and a few smaller banks have such. I have ordered westpac valuation and it hit contract pice but westpac is going at 70%. In hindsight, I should have order westpac to try out before ordering an NAB valuation.

    The contract was signed 6months ago.

    Hi Shahin,

    Don't need to be westpac but anyone that offers 80% LVR.
     
  7. cheekykoon

    cheekykoon Well-Known Member

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    Hi neK,

    Seems like the case, have to go with NAB at 80%.
     
  8. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Ok then thats good but preferably and use a lender that has Taylor Byrne on their panel and you can pick the valuer and please request an extension to settlement because 2 weeks is super tight.

    Is the purchase in QLD?
     
  9. cheekykoon

    cheekykoon Well-Known Member

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    Hi Shahrin, its Taylor Byrne thats got the lower valuation.
     
  10. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Ok so if you want to use Westpac just get them to use CBRE (I read the part where you mentioned that NAB used Taylor Byrne and got confused).

    The important thing is to get the extension.
     
  11. cheekykoon

    cheekykoon Well-Known Member

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    Has anyone in recent times got their valuation appealed successfully? So this Taylor Byrne would not buldge as we speak, is there anyway I can do to improve the valuation?

    The sales agent is so confident he could get the lower valuer (Taylor Byrne) to review, all the mortgage broker ever gets was a flat No. Each request takes a 1 day turnover time to reply by Taylor Byrne.

    @shahin - its NAB I'm using. Not westpac.

    Would it be possible to go another broker to try and get a valuation through NAB again?
     
  12. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    The odds are that the valuer will not change their valuation.

    Since you have a few weeks to settle - I would progress the application ASAP. Not sure why you want to appeal the valuation when you have other options.

    You cannot go through another broker and get another valuation for NAB. You can do this with some lenders but not others.
     
  13. neK

    neK Well-Known Member

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    $33k lower @ 80% = $26,400.
    Years from now, it will be a very insignificant number to you and you'll wonder why you stressed out so much for it.
     
    MTR likes this.