jjonboy

Hi,

You may recall me posting a couple of weeks ago regarding the house we had set our heart on and were looking to buy....

We had previously been concerned that our mortgage application may prove difficult however this sailed through. We encouraged by this exchanged on a 5 day cooling off period by putting down a non- refundable 0.25% deposit to in effect reserve the property for us. The final hurdle was the valuation.

The bank duly ordered the valuation and the biggest turkey in NSW got the job and under valued the property by around 10% (530k). Even the bank have challenged him telling him in their opinion he was wrong ut he has refused to budge. We have now ordered our own independant valuation which has come back at the correct value..

In essence this guy has made a mistake, and we can all do it i appreciate that. However it is the banks policy to only accept the first caluation they themselcves order. So in essence whilst we are appealing if we are not careful this guy will have had an off day and caused us to lose the house we love plus the holding deposit and legal/ due dilligence fees. The broker (excellent guy pm me if you want details) is now escalating the issue with the bank to rescue the deal. The vendors have kindly dropped 20k to help make the situation easier...

We won't know the outcome for a couple of days but watch out.... don't pay any money down until valuation is done is my word of advice for the week....

Jonboy

Flutterscutter

That is dreadful jon!!

I know you just want to get this sorted in the short term, but is there some kind of complaints procedure for this sort of thing, or an ombudsan you can report him to later?

Keeping fingers crossed for you as its such a lovely house!

jjonboy

thanks for the well wishes

the problem is the lack of comparson properties. The house is in Cherrybrook which in essence is only about 15-20 years old and are all brick and are set on newish housing estates...

as you saw the property we want to buy is timber and about 40 years old and is unique in the area. hence no comparisions makes a valuers life hard.... this guy has just played it safe from his point of view but in reality is killing the deal for us and the bank.....

Once the issue is sorted one way or another there will be a few choice emails going around the place... but just fingers crossed for now.... we have put the new valuation back to the bank who say they can't rely on it but will stongly consider the evidence contained within it. i suspect they are going to have another pop at the valuer to try to get him to raise his game.....

we are now 20k adrift... time will tell.... nerve wracking couple of days to come

lynnlovessun

Jon I hope everything works out well in the end - may I ask, is it standard procedure to lay a deposit down before having house valued? Who encouraged you to do this?

Thank you for making others aware of this risk - make sure you let us know how it go's - my feeling is it will work out in the end - housebuying is always stressful but these obstacles are usually overcome - don't forget the sellers are also in difficulty - if no one can get a morgage for the amount they are looking for easily.

Good luck,

Lynn

jjonboy

Yes the 0.25% is reasonably standard it enables you to take the house off hte market whilst seeking finance. It is not compulsory however , but the house can be sold from beneath you if not.

You comments re the sellers having to be realistic are very true. They have already dropped a bit more, but may have to take more of a drop.....

we will have to see if the bank will meet us at least half way....

Thanks for the well wishes

Jonboy

jjonboy

For anyone following this i am pleased to report the deal is back on, the bank came to the party so to speak. Me move in on the 7th October! Here's to never having a week as painful as the last one!

Cheers

JJonboy

Sleeping Beauty

hurrraaahhhh....nice to hear some good news.....congratulations jonathan