mortgage brokers / valuers question

[tj22]

Ok so i found a house that i can buy for 200k the RP data automated valuation comes in at 250k market value.

i was wanting to know what my chances are if i buy with a 20% deposit, could after 3 month get 20% equity out of the house?

or would my purchase price drive the valuation down to 200k?

has anyone had dealings with these types of deals?

 

[Peter_Tersteeg]

RP Data does not equal the value of the property. It's full of useful information, but just because you purchase below RP Data's statistical estimate does not mean you've purchased below market value.

If you buy the property for $200,000 then odds are, RP Data will pick up the sale and if you get another report 3 months after settlement, the report will suggest its worth closer to $200,000 than $250,000. By purchasing the property, you've defined the market value for the property and the report will take this into consideration in it's next estimate.

 

[zimby]

RP Data does not equal the value of the property. It's full of useful information, but just because you purchase below RP Data's statistical estimate[/u] does not mean you've purchased below market value.

If you buy the property for $200,000 then odds are, RP Data will pick up the sale and if you get another report 3 months after settlement, the report will suggest its worth closer to $200,000 than $250,000. By purchasing the property, you've defined the market value for the property and the report will take this into consideration in it's next estimate.

Exactly, only way this will change is if you change the number of rooms,car spots. Renovation will work too, but this only works for onsite valuations.
Then you will need to ring RPdata and get the figures changed, this may effect the comparison properties and result in a higher/lower price.
Did this about 6 months ago, made a big difference as it went from a 3 bed 2 bath to a 4 bed 2 bath unit, compatibles were houses which made the autoval jump.
We were able to do a topup on the loan based on a desktop val for the new figure and release the equity

 

[Greg Reid]

It sounds as if it may be a good purchase based on the RPData being $50k higher. As Peter said, the report is an estimate, better use is the comparable sales listed in the report.

Most lenders will not look at a new valuation until after 6 months, unless you have renovated or you refinance with another lender but there is a discharge fee involved (minimal but still $'s spent). You may need to then go to a lender who will do a full valuation rather than a desktop or auto val. No guarantees as the purchase price you bought for will be listed, however if other like properties in the area in the last three months are higher, you should benefit.

 

[Terry_w]

i was wanting to know what my chances are if i buy with a 20% deposit, could after 3 month get 20% equity out of the house?

Very low chance from my experience. I have many clients trying to do this claiming they are buying below market value. Revaluation after settlement shows at most a $10k increase