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Hey guys, I understand mortgage valuations would be on the conservative side, but as a rule of thumb, how many % below market value would the banks value your property to establish how much equity are in your assets?
Located in NSW.
Thanks guys
I think it depends on comparable data available for each property.
I recently bought a property where the val came in way under purchase price. There was no comparable sales so the valuer picked a number out of the sky.
I've also had recent revals on different properties that have been spot on the money I quoted in my application as there were many recent comparable sales in that suburb.
Hey Brokers,
A few months ago I got a valuation of my property in preparation for an upcoming development at the rear. It was however not based on me trying to refinance and I believe came in very conservative. They valued it at 610k when market is easily 650k. 2 houses is similar condition on same block sizes have sold for 665k in the past 6 months.
Could someone just explain why they came in so low when it was not to refinance?
did u have separate title to the land at the rear, or will that be issued once build is complete ?
ta
rolf
Hey Rolf,
That will be issued once the build is complete.
Is your property below average quality or Unique, Ie 4 bedroom Apartment.
Sometimes these properties can look better on paper.
If you're doing a refinance/topup at 80% some banks will use a desktop val, which is just an RPData estimation.
This has worked in our favour in the past as comparable properties may be valued higher.
so whats happening is the valuer is slicing a little off the val for 2 dwellings on one title until completion.
QUite common, and justifiable
With say a 3 unit development a 15 to 20 % discount from end value is normal, and we have seen as high as 30 %
ta
rolf