Just got word back from our broker. The land evaluation has come in at $225,000, that's a whopping $27,000 difference on the price of the land. Jordan Springs have sold 150 lots so far and have only had this issue with one other lot which was evaluated by what I'm led to believe might be the same company.
The broker is suggesting I negotiate the price, sure but I don't think they'll move $27,500 !!!!!
I've rang the evaluation company and yelled at them for a few minutes basically saying that it just doesn't make sense. I can accept a small difference but this seems crazy. The other point I made is that I had spoken to all the sales people at Jordan Springs and no-one has come in to speak to them or gain access to the lot. Sounds like a junior evaluator to me not doing their job properly. The evaluation company said they have to submit the evaluation with photo's so they must have done something. I think they just don't get it that it's a new suburb and are evaluating by close suburbs.
Anyway I've told them to appeal the valuation, and or at least explain why the massive difference.If there's a true reason to be concerned then fine, but 150 people so far haven't had such issues. Plus this is off the plan pricing so can you imagine it! Hopefully the appeal highlights the real issue and sorts it self out. They're willing to give us 95% of the evaluated price. Guess what bank and evaluators. If they want my money they're going to have to work it out.
I worked it out, if I accept the price and can't get Delfin to move on the cost it will screw me pretty hard.
Bank only lends 95% of value so....
0.95 * 225000 = 213,750
0.05 * 225000 = 11250
LMI on new loan amount
0.02 * 225000 = 4500
Total cash I have to come up with!
27500 + 11250 + 4500 = $43,250
There's go the saving for the construction loan, not to mention this doesn't include the $2000 for legal costs. That means we would have to save another 25k at least just to build a home. That adds another 12 months to the already long project due to land settlement being in June 2011. We might just move in around start to mid 2013 sometime if this happens.
Life - you suck!!!