240% above market value

[Waverlybay]

Hi

I ordered a valuation recently in which i expected a valuation of around $120k (based on comparable sales).

The valuer has just informed the bank that the valuation is $295,000. This is around 240% above market value.

The bank is happy to proceed with the refinance at this valuation as they think my initial valuation estimate was too low due to my ignorance of the market (as i am based overseas).

The comparable sales on the valuers report show $160k and 150k ranges for properties in much better condition than mine...so there has clearly been a typo on the report.

Moral of the story: incompetence everywhere !

WB

 

[geoffw]

Hi

I ordered a valuation recently in which i expected a valuation of around $120k (based on comparable sales).

The valuer has just informed the bank that the valuation is $295,000. This is around 240% above market value.

The bank is happy to proceed with the refinance at this valuation as they think my initial valuation estimate was too low due to my ignorance of the market (as i am based overseas).

The comparable sales on the valuers report show $160k and 150k ranges for properties in much better condition than mine...so there has clearly been a typo on the report.

Moral of the story: incompetence everywhere !

WB

Hi WB

I wouldn't mind one of thise incompetents!

(Can you get an 80% lend on their val? Might they get a bit suspicious if you didn't refinance on it for ten years?)

 

[NigelW]

Wrong

Hi

I ordered a valuation recently in which i expected a valuation of around $120k (based on comparable sales).

The valuer has just informed the bank that the valuation is $295,000. This is around 240% above market value.

The bank is happy to proceed with the refinance at this valuation as they think my initial valuation estimate was too low due to my ignorance of the market (as i am based overseas).

The comparable sales on the valuers report show $160k and 150k ranges for properties in much better condition than mine...so there has clearly been a typo on the report.

Moral of the story: incompetence everywhere !

WB

*sigh*

Why are all my valuers incompetent in the WRONG direction?

Good luck WB. Take it all!

 

[Aceyducey]

WB,

It's not all roses.

You won't be able to revalue this place for a number of years....maybe 7 or more.

And if forced to sell before that time it will be underwater.

Weigh up the positives & negatives before you finance it at the valuer's recommended value

Cheers,

Aceyducey

 

[RightValue]

I guess that Waverly Bay has never let a typo slip through proofing especially when trying to meet incredibly tight turnaround times!

If it happens once or twice every thousand or two thousand reports is the valuer really incompentent?

By the way usually it is an error on the part of the typist who is making the final correction!!!! ... of course the accuser of incompetence knows all the facts and has carefully investigated the issue from abroad........

Iv'e Been there, done that

RightValue

Let he who has never made a mistake cast the first stone!!!!!

 

[Jamie]

Hi all,

Knowing WB, I think his post was made a little more in jest than its been taken here

I think the point, in saying that incompetence is everywhere, is that the simple issue of a typo in the valuation was further compounded by the bank offering to lend against a value over twice that of the market value.

Im pretty sure WB isnt planning on borrowing 200% of the val, nor is he claiming that valuers are universally incompetent

Jamie

 

[Peter_Tersteeg]

I don't think there's any legal problem with WB taking the loan to the valuation the bank has offered, so why not take it.

There could be a problem if you're forced to sell, but if you structure it correctly, it could also mean you have access to a significant amount of cash for when it's needed.

With inflation, a dollar available to you today is worth more than a dollar made available in 10 years time. I'd take the loan, but I'd be careful about how I used it.

 

[NigelW]

I guess that Waverly Bay has never let a typo slip through proofing especially when trying to meet incredibly tight turnaround times!

If it happens once or twice every thousand or two thousand reports is the valuer really incompentent?

By the way usually it is an error on the part of the typist who is making the final correction!!!! ... of course the accuser of incompetence knows all the facts and has carefully investigated the issue from abroad........

Iv'e Been there, done that

RightValue

Let he who has never made a mistake cast the first stone!!!!!

* Chastened * but RV, I note, only half in jest that valuer's only gotta get one number right...if you don't check what your typist does your in for a world of pain

 

[geoffw]

I did once get a valuation, provided from a valuer by someone who was trying to flip me a property, where the number on the front pae was $20K higher than the number inside the report.

I don't know if it was a genuine mistake, or perhaps something from Flipper.

As well as that, the roperty was selling less than the selling price 10 years before.

I'm sure it's doubled since, but I did not take ite.