$20,000 difference in registered valuations.

[allblack]

I am selling my PPR. Initially purchasers were using ING who sent a valuer through the property last week. Valued at 440k (sale price). However at the last moment ING would not lend all the funds required so purchaser went to Bankwest. Bankwest valuer came through property yesterday. Find out today they valued at 420k. Therefore the sale is now in danger of falling through. Purchaser still wants to buy at 440k. What are their options. Yes they are using a broker.

 

[Rob Williams]

I am selling my PPR. Initially purchasers were using ING who sent a valuer through the property last week. Valued at 440k (sale price). However at the last moment ING would not lend all the funds required so purchaser went to Bankwest. Bankwest valuer came through property yesterday. Find out today they valued at 420k. Therefore the sale is now in danger of falling through. Purchaser still wants to buy at 440k. What are their options. Yes they are using a broker.

Been there. Done that.
Try another bank? I got over 20% value improvement moving a loan app from RAMS to Westpac.
In my experience, presenting comparable sales to highlight the "error" in the valuation does little good. The banks that either instruct valuers to provide fire sale values, or just use very conservative valuers, tend not to even look at evidence presented to them. No reason they can't try, though.
The broker ought to know which lender has solid values at any given time.
This is a moving target, but that's part of the service they provide.

 

[Bigtone]

Highly unlikely Bankwest will change in fact their mortgage insurer has a policy that even if you get it put up or another val done they take the lowest figure. Don't waste any more time with them

Saw valuations today in Chelsea vic, one done on Friday $600k 2nd done with different valuer today came in at $500k, huge difference and shows importance of not X-coll so this property can be taken to a lender that uses the $600k val. Personally I thought it is worth around $540-$565k.

Allblack ask the broker to find out which valuer ING used and then have him submit the deal to a lender that users that same valuer. Should be easy.

Good luck!

 

[euro73]

Valuers are allowed a 12% leeway. So they can overvalue by 12% or undervalue by 12% without a lender asking too many questions. Unfortunately valuations can be a little bit of a lottery. None of the major lenders allow you to choose the valuer, so you have no control. They assign a valuer randomly from an approved panel of valuers that they work with, so you could theoretically be be buying two identical properties on the same street , using the same lender and get two different valuers and two different results. Usually common sense prevails but not always.
In this case you can advise the purchasers to try another lender but theyve already tried two and that means two enquiries on their CRAA already.
The best thing to do is to ask your agent to provide a list of recent comparable sales within 2km or so, and provide that to the lender.

 

[allblack]

Just an update. Purchaser still got finance through Bankwest but had to pay
5k more in LMI. Bankwest would not let the valuation get reviewed. What I failed to mention in my original post was we also had an offer of 450k which we did'nt accept as the finance was very marginal. So in summary we had two offers of 440k & 450k after the property had been on the market for 3 weeks.......yet it was valued at 420k by the largest valuation co in Perth. These are strange times indeed