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> CAN GET VALUATION REPORT BEFORE SIGN OFFER LETTER?, Tricky subsale transactions

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TSPuchong Family
post May 17 2013, 12:53 AM

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QUOTE(oxm8 @ May 17 2013, 12:30 AM)
1.  good condition.it is basic but good care by seller. I m not fussy. As long as the parquet are ok..not leaking...toilet is clean..then ok..
2. Not much..$20k different..

Yup. I asked banker.this case can happen..either the agent gave wrong info to valuer prior to LO...or he kawtim with valuer but later when report is out the valuer bos doesnt want to sign the high value...btw my unit alredy increase by >10% in less than 1 yr...
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Mind reveal the branch name?

I see this as unethical and irresponsible act.

I can imagine the plight of raising a 30-50K cash within a tight time frame.

How many sleepless nites you went thru?

Horrible..

Reveal the names so the rest can be cautious of these unscrupulous bunch of monkeys
oxm8
post May 17 2013, 01:16 AM

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Nope..not sure it is branch or banker or valuer or agent fault. Btw b4 my case, my friend also kena...different bank different branch different agent...she need to raised $50k.....

U can hire a valuer before placing deposit.of coz u have to pay...few hundreds or maybe thousand....
FirstOne
post May 17 2013, 05:51 AM

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This only happen when you do not have your own trusted banker. Experienced banker will never have valuation problem as long as the price range are within the range
TSPuchong Family
post May 18 2013, 03:23 PM

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QUOTE(FirstOne @ May 17 2013, 05:51 AM)
This only happen when you do not have your own trusted banker. Experienced banker will never have valuation problem as long as the price range are within the range
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Are you saying the loan officer capable of influencing/ manipulating the valuation in order to close the sale?

Feed valuer? drool.gif

This post has been edited by Puchong Family: May 18 2013, 03:24 PM
FirstOne
post May 19 2013, 01:52 AM

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Exactly.
gnakey
post Aug 17 2013, 03:28 AM

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QUOTE(kenny.kL @ May 16 2013, 10:29 PM)
^

Sorry for your case bro.

Take note, SPA MUST NEVER be signed until you can get a confirmation from both valuer & loan offer.
Valuer/banker should confirm the details before the final SPA is drafted and signed.

Do not trust verbal confirmation 100%. Always get black & white.

Make sure backout (90% , etc ) clause is there. If it's not, you request the agent to include in offer letter then only you sign OL.
Anyway, in most cases, if valuer cannot get 90%, just change the valuer. Agents normally have a few valuers and bankers working with them.
Ask around if your agents is not helpful.

Take note, some valuers is new and inexperienced, so they have certain limits.

Look around for those senior and experienced valuers, turn the impossible to possible.
The valuer i know, commercial property/title also can get 90% loan.  smile.gif
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Hi kenny.kl, please PM me the valuer's contact. Thanks!!!
vektor_sigma
post May 29 2017, 03:16 PM

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QUOTE(oxm8 @ May 16 2013, 09:50 PM)
I agreed with TS. I am a real victim. Called valuer - he said yes yes can get 90%...LO also stated - yes yes 90% ..after sign SPA. then valuer came - cannot get 90%!!!...so i have to top up few thousand...

If u want to be save. Hire a valuer before u place booking or before sign SPA & LO!!
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I'm facing the same dilemma as TS now. In your case, you didn't ask the bank for verbal valuation?
yummt
post May 30 2017, 09:34 AM

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QUOTE(vektor_sigma @ May 29 2017, 03:16 PM)
I'm facing the same dilemma as TS now. In your case, you didn't ask the bank for verbal valuation?
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this case reminded me about my own condo refinance process. Refinance to get some extra cash. My whole process unfortunately took more than 6 months, maybe my wrong or lawyer's wrong.
The following was the steps I took, all sifu please correct the steps so that other can do it better!

Home Loan Refinancing Steps
1) Looked around for Banker for best refinancing interest rate. I took condo value just by looking at property websites and apply loan. Received LO and signed
2) Looked around for Lawyer to get a competitive legal fee. Instruct firm to proceed.
3) Lawyer prepare facilities agreements based on LO and i signed.
4) Lawyer requested redemption statement from existing bank, my condo statement of account, quit rent, assessment receipts, master policy of fire insurance.
5) Lawyer requested developer lawyer to furnish Master title, CCC, submission of letter to acquire strata title.
6) Sign Power of attorney, deed of assignment, deed of reassignment
7) Banker send valuer to give value. Valuer said past sell transactions 1 year ago have lower value. Final value is lower than original LO. Supplementary LO issued lower amount & valuer report send to lawyer.
8) Accepted lower value but facilities agreement already stamped with higher value. Lawyer say can refund the stamp duty difference but I have to pay full again to redo, wait few months for lhdn to pay you back.
9) New bank disburse the original bank the outstanding amount. Original bank sign a discharge letter for you. Then new bank Rentas the additional refinance money to you in the bank account you open with them.

vektor_sigma
post May 30 2017, 06:14 PM

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QUOTE(yummt @ May 30 2017, 09:34 AM)
this case reminded me about my own condo refinance process. Refinance to get some extra cash. My whole process unfortunately took more than 6 months, maybe my wrong or lawyer's wrong.
The following was the steps I took, all sifu please correct the steps so that other can do it better!

Home Loan Refinancing Steps
1) Looked around for Banker for best refinancing interest rate. I took condo value just by looking at property websites and apply loan. Received LO and signed
2) Looked around for Lawyer to get a competitive legal fee. Instruct firm to proceed.
3) Lawyer prepare facilities agreements based on LO and i signed.
4) Lawyer requested redemption statement from existing bank, my condo statement of account, quit rent, assessment receipts, master policy of fire insurance.
5) Lawyer requested developer lawyer to furnish Master title, CCC, submission of letter to acquire strata title.
6) Sign Power of attorney, deed of assignment, deed of reassignment
7) Banker send valuer to give value. Valuer said past sell transactions 1 year ago have lower value. Final value is lower than original LO. Supplementary LO issued lower amount & valuer report send to lawyer.
8) Accepted lower value but facilities agreement already stamped with higher value. Lawyer say can refund the stamp duty difference but I have to pay full again to redo, wait few months for lhdn to pay you back.
9) New bank disburse the original bank the outstanding amount. Original bank sign a discharge letter for you. Then new bank Rentas the additional refinance money to you in the bank account you open with them.
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I think your mistake is, you didn't survey the surrounding price, and did you give bank pictures to see when you ask for loan? (so called verbal valuation?)

When they issue you supplementary LO, do you have the right to decline? (maybe from the clause in the letter)
yummt
post May 31 2017, 09:24 AM

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1) Nope no pictures sent to bank when apply loan, just the loan application form state how much I want to apply, and they issued LO based on the amount I write.
2) Not really reject the supplementary LO la but I appeal to the bank to increase the amount which they did thumbup.gif

But going back to the thread title,when buy a property or refinance one,

A) Can we get a bank approved valuer to do valuation first before we sign SPA and LO?
B) Will this valuer report be recognized since we must sign LO first before bank assign valuer to check? blink.gif
wild_card_my
post Jun 1 2017, 02:55 PM

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QUOTE(oxm8 @ May 17 2013, 01:16 AM)
Nope..not sure it is branch or banker or valuer or agent fault. Btw b4 my case, my friend also kena...different bank different branch different agent...she need to raised $50k.....

U can hire a valuer before placing deposit.of coz u have to pay...few hundreds or maybe thousand....
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You are right. Valuation can be done before signing, or even before the loan application.

QUOTE
Hi Wild card,

I have a question that maybe you have some answer, posted in thread
https://forum.lowyat.net/topic/2814723/+20

A) Can we get a bank approved valuer to do valuation first before we sign SPA and LO?
B) Will this valuer report be recognized since we must sign LO first before bank assign valuer to check?


1. Can, you can get the actual, assigned valuer to do the valuation. You can even do this befor the loan is approved, but better to do it after loan is approved so you know which valuer the bank will be using. All you need to do is ask the banker/agent/broker for the NAME and COMPANY of the valuer, then call the company straight asking for the specific valuer. Confirm that he/she has given so-and-so VERBAL VALUATION previously (they will keep verbal valuation in their records to avoid conflicting claims)...

Then tell the valuer that you want him to do an actual valuation, you will need to pay them a deposit, and they will release the report to you only after you paid the rest. You can attach this report to the bank along with the signed LO (if you are satisfied)...

2. Yes, the report is usually recognized for 6 months from the date of the report. But remember to use the banks' own panel valuer, but in fact, better use the one that has already been assigned for you loan/LO. Why? Because for some banks, the valuer assigned to you is RANDOM or based on the first letter of your name... so even if, for example, Henry Butcher is panel to OCBC, it doesn't mean that PA VALUER can be used for your case, then usesless lor..

user posted image

Hope that helps,

Faiz Azmi


yummt
post Jun 1 2017, 03:40 PM

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QUOTE(wild_card_my @ Jun 1 2017, 02:55 PM)
You are right. Valuation can be done before signing, or even before the loan application.
1. Can, you can get the actual, assigned valuer to do the valuation. You can even do this befor the loan is approved, but better to do it after loan is approved so you know which valuer the bank will be using. All you need to do is ask the banker/agent/broker for the NAME and COMPANY of the valuer, then call the company straight asking for the specific valuer. Confirm that he/she has given so-and-so VERBAL VALUATION previously (they will keep verbal valuation in their records to avoid conflicting claims)...

Then tell the valuer that you want him to do an actual valuation, you will need to pay them a deposit, and they will release the report to you only after you paid the rest. You can attach this report to the bank along with the signed LO (if you are satisfied)...

2. Yes, the report is usually recognized for 6 months from the date of the report. But remember to use the banks' own panel valuer, but in fact, better use the one that has already been assigned for you loan/LO. Why? Because for some banks, the valuer assigned to you is RANDOM or based on the first letter of your name... so even if, for example, Henry Butcher is panel to OCBC, it doesn't mean that PA VALUER can be used for your case, then usesless lor..

user posted image

Hope that helps,

Faiz Azmi
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Wow really knowledgeable notworthy.gif . Thanks for the information. Really help for others.

From what I know, in my particular case, I can change the panel valuer assigned to me. So knowing the list of valuer the bank approved is also important.
You will be surprised how much quotation is different from 1 valuer to another. But this is not so important compared to valuer manage to give you the 90% loan margin.

Thanks again
wild_card_my
post Jun 1 2017, 03:50 PM

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QUOTE(yummt @ Jun 1 2017, 03:40 PM)
Wow really knowledgeable notworthy.gif . Thanks for the information. Really help for others.

From what I know, in my particular case, I can change the panel valuer assigned to me. So knowing the list of valuer the bank approved is also important.
You will be surprised how much quotation is different from 1 valuer to another. But this is not so important compared to valuer manage to give you the 90% loan margin.

Thanks again
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Which bank is it, and what is your first name?

have you alread signed your LO?
nonadoes
post Jun 1 2017, 04:09 PM

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My friend bought a subsale house. Agreed with seller price for about 450k iirc.
Independent valuation conclusion is about that price as well.
Bank approved 90% loan. Proceed with signing, everything done, valuation, lo, snp and etc.

Then waiting for money to disburse to seller and waiting for keys,
Suddenly LHDN pop up saying the valuation by the independent valuer is too low.
Need to follow LHDN valuation. ??? sleep.gif

Friend's agent and lawyer and etc saying this is a rare case.
I heard my friend have to top up the stamp duty difference, then lawyer fee also increase. Not sure what else the friend have to top up already.

Just wondering why LHDN has bigger voice than the valuer?


chiahau
post Jun 1 2017, 04:14 PM

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QUOTE(nonadoes @ Jun 1 2017, 04:09 PM)
My friend bought a subsale house. Agreed with seller price for about 450k iirc.
Independent valuation conclusion is about that price as well.
Bank approved 90% loan. Proceed with signing, everything done, valuation, lo, snp and etc.

Then waiting for money to disburse to seller and waiting for keys,
Suddenly LHDN pop up saying the valuation by the independent valuer is too low.
Need to follow LHDN valuation. ??? sleep.gif

Friend's agent and lawyer and etc saying this is a rare case.
I heard my friend have to top up the stamp duty difference, then lawyer fee also increase. Not sure what else the friend have to top up already.

Just wondering why LHDN has bigger voice than the valuer?
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Mentioned already many times.

LHDN can value your house differently. Nothing wrong with that.

LHDN's valuation are based on their own. They do not obtain the value from banks or etc if I am not mistaken.

And FYI, this is not a rare case. The lawyer must be inexperience.

I have seen LHDN's valuation of some property higher by at least 5~10% sometimes.

That's why most lawyers will quote you Ad Valorem Stamp Duty instead of a fixed figure there.

Stamp duty is subjected to the valuation of LHDN.
wild_card_my
post Jun 1 2017, 04:17 PM

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QUOTE(nonadoes @ Jun 1 2017, 04:09 PM)
My friend bought a subsale house. Agreed with seller price for about 450k iirc.
Independent valuation conclusion is about that price as well.
Bank approved 90% loan. Proceed with signing, everything done, valuation, lo, snp and etc.

Then waiting for money to disburse to seller and waiting for keys,
Suddenly LHDN pop up saying the valuation by the independent valuer is too low.
Need to follow LHDN valuation. ??? sleep.gif

Friend's agent and lawyer and etc saying this is a rare case.
I heard my friend have to top up the stamp duty difference, then lawyer fee also increase. Not sure what else the friend have to top up already.

Just wondering why LHDN has bigger voice than the valuer?
*
As far as the loan is concerned, it doesn't matter because the banks will follow their own appointed valuer.

But LHDN valuation matters when it comes to stamp duty and stamp duty waiver for 1st house scheme.

One of the conditions is that the property must be below RM500k, as per valued by LHDN

This post has been edited by wild_card_my: Jun 1 2017, 04:18 PM
chiahau
post Jun 1 2017, 04:19 PM

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QUOTE(wild_card_my @ Jun 1 2017, 04:17 PM)
As far as the loan is concerned, it doesn't matter because the banks will follow their own appointed valuer.

But LHDN valuation matters when it comes to stamp duty and stamp duty waiver for 1st house scheme. 

One of the conditions is that the property must be below RM500k, as per valued by LHDN
*
And nobody knows how LHDN values the property tongue.gif

That's the wonderful part of this whole thing.


wild_card_my
post Jun 1 2017, 04:26 PM

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QUOTE(chiahau @ Jun 1 2017, 04:19 PM)
And nobody knows how LHDN values the property tongue.gif

That's the wonderful part of this whole thing.
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un·luck·y
ˌənˈləkē
adjective
adjective: unlucky; comparative adjective: unluckier; superlative adjective: unluckiest

having, bringing, or resulting from bad luck.
"LHDN valued my RM460,000 property as RM520,000, so now I am out by RM5,000"
synonyms: unfortunate, luckless, out of luck, jinxed, hapless, ill-fated, ill-starred, unhappy;
antonyms: fortunate, favorable

icemanfx
post Jun 1 2017, 04:54 PM

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QUOTE(chiahau @ Jun 1 2017, 04:14 PM)
Mentioned already many times.

LHDN can value your house differently. Nothing wrong with that.

LHDN's valuation are based on their own. They do not obtain the value from banks or etc if I am not mistaken.

And FYI, this is not a rare case. The lawyer must be inexperience.

I have seen LHDN's valuation of some property higher by at least 5~10% sometimes.

That's why most lawyers will quote you Ad Valorem Stamp Duty instead of a fixed figure there.

Stamp duty is subjected to the valuation of LHDN.
*
QUOTE(chiahau @ Jun 1 2017, 04:19 PM)
And nobody knows how LHDN values the property tongue.gif

That's the wonderful part of this whole thing.
*
LHDN's value is from Valuation and Property Services Department. Napic number is lagging behind. LHDN's value is higher if bought at below market price.

yeeck
post Jun 1 2017, 05:59 PM

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What prospective buyers can do to pre-empt such scenarios is to get the last transacted prices report. Sites such as brickz provide that. Usually valuations given by valuers won't run far from the last transacted price for a similar property in that area.

 

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