What happens when a property valuation is under the agreed purchase price?
Depending on your circumstances, if a bank valuation of a property is under the agreed purchase price it could mean that you cannot obtain the required finance to assist with your Purchase.
The video highlights an example where we were acting for a First Home Buyer and the property valuation ordered for finance purposes was significantly lower than the agreed purchase price. It is possible, even with a strata apartment, for the results of a bank valuation to be under the agreed purchase price. There are varying conditions which affect a bank valuation such as locality, density of an apartment block, access to transport and comparable recent sales in the area.
We assisted this buyer to obtain a secondary valuation and provided extensive advice as to her options. We liased closely with the mortgage broker involved and the results of the second valuation proved that the first valuation was amiss. We had one very happy (and relieved) client!