We’d booked an appointment this afternoon to sign contracts for what-will-hopefully-very-soon be our haus.

Everything was almost ready to go: we’d ironed out a couple of contract issues, the strata report was sweet, the building report showed nothing to worry about and the loan was approved. All that remained was the bank valuation of the property to finalise the loan (which was due today).

We expected no issues.

Boy!Howdy! were we wrong.

The valuation was almost $100K less than our offer for the property, which means no go on the loan.

Just. What?

We’ve been seriously looking for about 6 months now, but I’ve been receiving domain and home alerts for desirable properties in the area for over 4 years. I feel at this point that we know what properties are going for and we offered accordingly (less than the asking price).

We estimated that we’d willing pay probably $5-10K more than market value, because we really wanted to live in that complex and would suck up the difference, but $100K difference! Huh?

After reading the report we became even more perplexed – the valuers comments and comparisons were clearly erroneous and, frankly, preposterous. According to our research, the last place sold in the complex went for a similar price to our offer and an identical place (the apartment next door) sold for more than his valuation – over 2 years ago.

Our super-fab mortgage broker has disputed the valuation with the bank (which bank?), with, you know, actual relevant data. Hopefully whomsoever’s desk it lands on has some vague clue and will come to the sanity party.

Otherwise, we’re $1,000 down in conveyancing and inspection fees, who knows how much in Don’s time and opportunity cost – and we start all over again.

I am not sure where this leaves us.

Another lender? Sadly, word has it that they all contract out to the same firm.

Oh! Universe! Why do you challenge us so?

In the meanwhile, we are managing our expectations and will be swapping rooms with Joe/Frank on the weekend, because clearly he has had enough time living in the room that contains our giant closet (we are in and out all the time and he bears the constant intrusions with very good grace). He needs a tiny space of his own – especially as he has a Very Important Birthday in a week from now. We’d been hoping to gift him with an adult bed (his lanky frame is rather too large for the single) for his very own non-Bessie / non-parent space in what-will-hopefully-very-soon be our haus, unfortunately we may now be gifting a rain-check.


As an aside, the valuers have one of the most hideous websites I have seen in my life. In addition they have a delightful photo-gallery of John Howard opening their offices. Clearly they are not the kind of people one would want to deal with.

3 thoughts on “curses

  1. That sucketh mightily – did they have any rationale for their lower price? I used a great mortgage broker recently. He got a good valuation for me and worked out who would structure the best deal for me. Let me know if you want his name.

  2. Ruthless, we’re pretty pleased with our broker at present, but I’d love a recommendation.

    The rationale was that it was a warehouse conversion in a quasi-industrial area. The valuer was concerned that it would take a while to sell if we defaulted.

    Universe save us from subjectivity! Valuer acknowledged that the property was difficult to value because there was not a lot of churn in the area (that people want to stay put because it is fabulous seemed to not occur to him). Price comparisons were for apartments which had considerably smaller square meterage, fewer bathrooms and on a single level – so no comparison, really.

    Unfortunately WhichBank sided with him on appeal (well, they would, given they contracted him).

    Prudence, I don’t think so. But we are viewing the whole exercise as a Learning Experience and a What is TheUniverse trying to tell us (possibly me, rather than Don – he rolls his eyes).

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