property valuations to draw on equity

E

eggnog

Say I want to re-value my property so I can draw down on the equity growth. So whats the best way one goes about doing this. should one

i) go straight to the bank and ask them to do the valuation or

ii) find out who is on the banks valuation board. Go direct to the valuation company to do an independant valuation then hand in the report to the bank. With that said does anyone know who is on Westpacs valuation board
 
valuation

I just went ot the bank and told them that I'd like to borrow against the equity in my home and they organised a valuation as part of the loan application process.

It couldn't have been easier.
 
CashflowPlus

I have done it both ways on different occasions- NEVER again!!!!! It might be free when the bank organizes it, but - as with anything - you get what you pay for! :(

I go to the Bank, ask who is on their valuation panel, organize the valuation myself, provide the valuer with as much information as I can gather about prices (and other relevant information) in the local area, tell him that I want it for loan purposes - and every time the valuation comes back with a figure very close to what I was expecting. I then take that to the Bank - they will bleat a bit, but when I tell them that the valuation was performed by a valuer on their panel and that I will pay to have the valuation assigned to them, they say 'OK'. Sure it costs a few hundred dollars, but it is worth every cent, IMHO!!

On the other hand, the only time that the Bank organized a valuation, the figure came in WAAAAY under - it took me several weeks and a lot of work, but the Bank eventually agreed with the figures I provided.

A wise old IP investor said to me a few years ago that a valuation which is too low can set your investment plans back for years. I wholeheartedly agree with that sentiment!!!!!

Cheers
LynnH

P.S. Have sent you a PM, CashflowPlus
 
You raise a very good point Lynn. I'm often frustrated by the banks valuations.

Might have to get some more tips from you next time I want to do it - will give your way a try. How do you find the valuers when you talk to them, as when I have talked to them, they don't seem very interested in listening to what I had to say about other sales etc. in the area?
 
Steve

One of the BIG advantages (IMHO) about arranging and paying for the valuation yourself is that the valuation firm will send one of their senior/experienced valuers to do it! When the Banks organize valuations, it seems to me that the junior/less experienced valuers are the norm. That has certainly been my experience! :(

Before the valuation, I gather as much info as I can - things like HomePriceGuide settled sales for past 1-2 years and individual property profiles, cut out the auction results from the weekend newspapers, get whatever information you can scrounge from the local REAs, and provide as much local info as you can. [For example, in our area a recent sale was for a house on half an acre - when it sold previously it was on over an acre. The vendors had cut off the back half-acre and built a new home on it. That's the sort of info that a valuer probably wouldn't know about.] In short, get as much info as you can gather, photocopy it, and give copies to the valuer. It also helps if you have floor plans for the house, so the valuer can simply take the measurements s/he needs from that, rather than having to go around measuring everything.

I have found that if you are pleasant to them and don't come across as a 'know-it-all', then you probably won't have any problems.

Cheers
LynnH
 
Cheers Lynn. You've pretty much confirmed what I suspected about bank valuations. Looks like i'll be paying a visit to that valuer you PM'd me :D
 
No worries, Cashflow.

Good luck - if you'd like any further info, please feel free to PM me again.

Let me know how it all goes!! :)

Cheers
LynnH
 
LynnH said:
Steve

One of the BIG advantages (IMHO) about arranging and paying for the valuation yourself is that the valuation firm will send one of their senior/experienced valuers to do it! When the Banks organize valuations, it seems to me that the junior/less experienced valuers are the norm. That has certainly been my experience! :(

Before the valuation, I gather as much info as I can - things like HomePriceGuide settled sales for past 1-2 years and individual property profiles, cut out the auction results from the weekend newspapers, get whatever information you can scrounge from the local REAs, and provide as much local info as you can. [For example, in our area a recent sale was for a house on half an acre - when it sold previously it was on over an acre. The vendors had cut off the back half-acre and built a new home on it. That's the sort of info that a valuer probably wouldn't know about.] In short, get as much info as you can gather, photocopy it, and give copies to the valuer. It also helps if you have floor plans for the house, so the valuer can simply take the measurements s/he needs from that, rather than having to go around measuring everything.

I have found that if you are pleasant to them and don't come across as a 'know-it-all', then you probably won't have any problems.

Cheers
LynnH
Click to expand...

Great tips LynnH,

I have trouble with valuers as well. Interesting that you mention that if the bank orders the valuation they send their inexperienced staff around, but if you pay for it yourself, you get the Senior valuer!!

In Melbourne at the moment, some firms are employing students (not that there is anything wrong with students, but they are in-experienced) who are not qualified to value properties. This happened with one of ours in North Melbourne. The young girl valued our town house at last year's prices, even though the whole area has moved up by at least 20%!!! We are in the process of disputing this valuation!

Regards Jason.
 
My Mortgage Broker generally knows which valuers work for which banks. So have a chat with your mortgage broker to find the valuer you need.
 
jingo said:
I have trouble with valuers as well. Interesting that you mention that if the bank orders the valuation they send their inexperienced staff around, but if you pay for it yourself, you get the Senior valuer!!

In Melbourne at the moment, some firms are employing students (not that there is anything wrong with students, but they are in-experienced) who are not qualified to value properties. This happened with one of ours in North Melbourne. The young girl valued our town house at last year's prices, even though the whole area has moved up by at least 20%!!! We are in the process of disputing this valuation!

Regards Jason.
Click to expand...

Hi jingo

Have heard that the Banks only pay around $150 for a bank-commissioned valuation, so it's not surprising that the juniors get to do these valuations. But students??? That's seriously scary! :eek:

Good luck in your dispute with the bank over the valuation on your North Melbourne townhouse! Our last dispute was in November last year - had to spend a lot of time and make numerous phone calls, but it all worked in our favour in the end.

Cheers
LynnH
 
LynnH said:
Have heard that the Banks only pay around $150 for a bank-commissioned valuation, so it's not surprising that the juniors get to do these valuations. But students??? That's seriously scary! :eek:
Click to expand...

Apparently true though... I have a friend who is studying her first year of the degree and has already been employed by a major firm and has a lot of involvement in doing valuations already. Although a lot of these are commercial properties and farms (where the real valuation money is, apparently).
 
Lukey13 said:
Apparently true though... I have a friend who is studying her first year of the degree and has already been employed by a major firm and has a lot of involvement in doing valuations already. Although a lot of these are commercial properties and farms (where the real valuation money is, apparently).
Click to expand...

Lukey

You said your friend has a lot of involvement in doing valuations and that "... a lot of these are commercial properties and farms ..."! OMG - that is even scarier! :eek: :eek: :eek: Considering the low LVRs that the Banks lend on for these type of properties, that could have a very serious impact upon one's investment plans!!

Cheers
LynnH
 
What a the legalities of getting your own valuation done. ie Is there any way you can "force" the bank to accept a valuation if it is done by a qualified valuer? A silly question I know, because if they aren't happy with the valuation then they aren't going to lend you the money! But I thought I'd ask nonetheless?
 
THEHEATH

Getting your own valuation is perfectly legal.

You cannot "force" the bank to accept a valuation which has been done by a qualified valuer - but if you have the valuation done (a) by a valuer on the bank's valuation panel; (b) written in such a format as is acceptable to the bank; and (c) tell the bank that you will pay to have the valuation assigned to them - then it is most unlikely that they will refuse to accept it. After all, it does save them money. :D

A qualified valuer is most unlikely to give an unrealistically high valuation, since their professional reputation - and hence, livelihood - is at stake. They do, after all, receive a good percentage of their income from the banks.

I have used this approach several times now, and it has always worked for me. More details are outlined in my posts #4 and #6 above.

Cheers
LynnH
 
Last edited:
Hi,

I always find out which Valuers are on my bank's panel and then get TWO seperate valuations done, and then re-assign the higher one to the bank.

A house I had done a simple reno on earlier this year was valued at $340K by one company and $375K by the other.

The vals may have cost me around $600-700 all up, but they potentially allowed me to borrow an extra $28K (80% of the difference between the low val and the high val).

Adam
 
We had our new IP valued last week.
I am bitterly disappointed with the valuation!
And it was done by the head of the firm... not some kid out of uni.
We are paying $275,000 for 3 large bedrooms, 2 bathrooms, 2 storey duplex with 2 patios (up and down).Built in 99.
Including all furniture. land is over 350m2
The valuer only valued it at $260,000. (He didn't include the furniture)
He said that there were no comparable sales in the area.
So UP goes the LMI.
Bummer!!







LynnH said:
Steve

One of the BIG advantages (IMHO) about arranging and paying for the valuation yourself is that the valuation firm will send one of their senior/experienced valuers to do it! When the Banks organize valuations, it seems to me that the junior/less experienced valuers are the norm. That has certainly been my experience! :(

Before the valuation, I gather as much info as I can - things like HomePriceGuide settled sales for past 1-2 years and individual property profiles, cut out the auction results from the weekend newspapers, get whatever information you can scrounge from the local REAs, and provide as much local info as you can. [For example, in our area a recent sale was for a house on half an acre - when it sold previously it was on over an acre. The vendors had cut off the back half-acre and built a new home on it. That's the sort of info that a valuer probably wouldn't know about.] In short, get as much info as you can gather, photocopy it, and give copies to the valuer. It also helps if you have floor plans for the house, so the valuer can simply take the measurements s/he needs from that, rather than having to go around measuring everything.

I have found that if you are pleasant to them and don't come across as a 'know-it-all', then you probably won't have any problems.

Cheers
LynnH
Click to expand...
 
MissMuffitt said:
i.
We are paying $275,000 for 3 large bedrooms, 2 bathrooms, 2 storey duplex with 2 patios (up and down).Built in 99.
Including all furniture. land is over 350m2
The valuer only valued it at $260,000. (He didn't include the furniture)


We have learnt from bitter experience not to have furniture included on the contract, but to draw up a separate agreement with the vendor saying he will leave all the furniture in the house (or whatever you have agreed on) BECAUSE the valuer will estimate the value of the furniture and reduce that off the purchase price to value what the house is worth without the furniture.
So, you thinking you are clever getting the vendor to include all the furniture in the purchase price can backfire badly if you state it on the contract:eek:
Click to expand...
 
You must log in or register to reply here.

Similar threads

S
RP data valuations
Replies
3
Views
1K
Marty McDonald
Marty McDonald
albanga
Using Equity and Savings for a deposit?
Replies
5
Views
1K
Terry_w
Terry_w
R
valuation in western sydney
Replies
13
Views
2K
RetireRich101
R
Brady
CBA $0 Upfront Valuation
2
Replies
33
Views
6K
Moneyman_85
Moneyman_85
T
Independent Valuation Issues
2
Replies
21
Views
4K
T_Trade
T
Back
Top