New home buyer traps

Home valuation problems

Mark Bryson - Saturday, June 06, 2015

Just recently we have had some interesting valuations from some of our client’s banks. The bank values for two particular properties in the same street where very interesting.  

One home of 14s/q and land size of 213m/2 valued at $300k then a few houses down in the same street 16s/q home and on a 238m/2 lot valued at $305k work that out? The valuations took place in the same week and by the same bank!  

How could this happen? There is no simple answer if one at all.

Let’s break things down, extra land size of 25m/2. Build extra 18.6m/2 of building. Bank valued at $5,000 more than the smaller home.

The inconsistencies in bank valuations are causing a lot of problems for many clients with many having to dig further into their savings to make up the shortfalls.

Some clients are now postponing the building of their new homes due to these varied and inconsistent valuations.

I feel there are possibly several different ways of looking at this matter the banks are starting to get nervous or is it just a valuer that’s got the values wrong?

No matter which way you look at this, home buyers are being severely affected.
  



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