Another volatile valuation question - rather urgent

Amadio

Amadio

Does anyone have any suggestions about what to do in this situation?

A couple bought a Sydney CBD apt. 2 weeks ago. The price in the contract is in line with other apartments which have recently been sold in the same building within the last few weeks. The valuation came in 1 week ago way under the price because the valuer didn't include the parking place which is included in the sale contract. The valuation which they got today from NAB says Car Accommodation : "Nil".

They are using a mortgage broker who doesn't seem to be able to get on top of this in a timely fashion - like right now. The couple are prime candidates for the best loan possible with excellent full time jobs.

How does one get a property re-valued when a clear mistake has been made?

Thanks for any opinions.
 
Last edited:
Thanks Aaron - what is valex? The valuer himself?

The broker did send an email pronto, and did get the actual valuation from NAB to pass on to the buyers as if it was final.
 
Thanks Terry - relieved to hear that it's no big deal. Guess they need to be a bit patient. They are first time buyers and quite nervous looking at a sale which has been a year in the making going down the gurgler.
 
Amadio said:
Thanks Aaron - what is valex? The valuer himself?
Click to expand...

Valex is the company that instructs valuers.

The broker did send an email pronto, and did get the actual valuation from NAB to pass on to the buyers as if it was final.
Click to expand...

Getting a copy of the valuation is easy....did the valuation go to the assessor before it was amended?
 
Aaron_C said:
Getting a copy of the valuation is easy....did the valuation go to the assessor before it was amended?
Click to expand...

Gosh - all these names of people that I don't know. Thanks for telling me what valex was. Next one is assessor - is that different from the person who did the valuation?

The valuation hasn't been amended yet.
 
That is bad.

In inner city apartments a carpark is worth big money. The number of carparks makes a difference. It is one question the valuer should always ask and if in doubt get a copy of the title and plan to find out as it has a material impact on the valuation figure.
 
Amadio said:
Next one is assessor - is that different from the person who did the valuation?
Click to expand...

The assessor is the guy working in the bank who approves/declines your friend's loan. Need valuation amended ASAP by valex otherwise they will reject the security.
 
Huge apologies to NAB. It's not them but ING who are the lenders who sent out the valuer who got it wrong.

Update: at lunchtime today, on the advice of their broker who has got precisely no-where with having this valuation amended to include the car space, they have now applied with ANZ.
 
I had a valuer miss a bedroom and put it as a 3br not 4br. He decided to dig his heels in and not admit he had gotten it wrong despite it being a proper 4br house. Fortunately the val was accepted after challenge and formal complaint made from the lender to the valuation firm.
 
A couple of years ago a client applied for a loan (directly) through one lender who organised the valuation. That valuation came back 20% under the purchase price.

We took it to a different lender who allows the broker to organise the valuation. When the valuer got in touch with the agent, the agent rang me and told me that it was the same individual coming out for a second time. This put the fear of God into me and I was expecting exactly the same result.

Instead the valuation came back at purchase price. Apparently the valuer hadn't been informed by the first lender that a car space was included. Given that we showed her there was a second title for the car park, she gave us the purchase price.
 
RightValue said:
That is bad.

In inner city apartments a carpark is worth big money. The number of carparks makes a difference. It is one question the valuer should always ask and if in doubt get a copy of the title and plan to find out as it has a material impact on the valuation figure.
Click to expand...

Its a surprisingly common ommission we have found.

ta
rolf
 
PT_Bear said:
A couple of years ago a client applied for a loan (directly) through one lender who organised the valuation. That valuation came back 20% under the purchase price.
Click to expand...


With the current climate, there are very likely that the valuation may come back 20%-30% under the purchase price

If you have enough equity from another property, the loan approval will not be a problem, rite?

T
 
THEGREAT888 said:
With the current climate, there are very likely that the valuation may come back 20%-30% under the purchase price
Click to expand...
The example I quoted was quite a few years ago, but no less relevant to the current situation.
The last time I had a significant problem with a purchase valuation, it was over 20% under the price paid at auction.

THEGREAT888 said:
If you have enough equity from another property, the loan approval will not be a problem, rite?
Click to expand...
Loads of equity likely means that you can still settle the purchase, but do you really want to chew up all your equity because of a screw up on the part of the bank or the valuer?
 
PT_Bear said:
The example I quoted was quite a few years ago, but no less relevant to the current situation.
The last time I had a significant problem with a purchase valuation, it was over 20% under the price paid at auction.


Loads of equity likely means that you can still settle the purchase, but do you really want to chew up all your equity because of a screw up on the part of the bank or the valuer?
Click to expand...

Agree

Can anyone explain to me what is the difference with drive by valuation to full and complete valuation?

t
 
THEGREAT888 said:
Agree

Can anyone explain to me what is the difference with drive by valuation to full and complete valuation?

t
Click to expand...

Drive by - going past in a car (or a vehicle of somesort) at high speed. The valuer must be the driver.

Full - stopping car and actually going inside house.
 
Terry_w said:
Drive by - going past in a car (or a vehicle of somesort) at high speed. The valuer must be the driver.

Full - stopping car and actually going inside house.
Click to expand...

On a serious note, how do they value with the drive by valuation?

And what basis would they choose to either drive by or full and complete valuation

t
 
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