Bank valuations

[mcarthur]

This is slightly irrelevant - but my partner did a thesis paper on this topic exactly - 'How much do people think their home is worth?'.

She had a subset of data collected by some agency - where people estimated their house value, got it valued/went to auction, compared the results.

From memory her conclusion was that on average, people overestimated their property value by 8-12%.

But then again, there arent many rich academics!

Heh heh - yes, I was once a poor academic

This brings me to wondering what the 18months of valuer education actually gives you! Exactly what makes a licensed valuer any better than any other sensible - note the word - person in being able to pick a value that the property could sell at.

I'm still waiting at a hint of an "acceptable methodology" if there are truly no recent sales in the vicinity that are at all similar - I don't need to here the secret squirrels detail that 18 months of training gives you, but can a valuer on here give something pls?

Rob

 

[Redom]

Heh heh - yes, I was once a poor academic

This brings me to wondering what the 18months of valuer education actually gives you! Exactly what makes a licensed valuer any better than any other sensible - note the word - person in being able to pick a value that the property could sell at.

I'm still waiting at a hint of an "acceptable methodology" if there are truly no recent sales in the vicinity that are at all similar - I don't need to here the secret squirrels detail that 18 months of training gives you, but can a valuer on here give something pls?

Rob

Haha i feel bad for them - they get sounded out as useless by most brokers (frustrated by poor vals effecting deals), by angry customers and just by the average Joe.

Not sure about the education part - probably to understand drivers of markets, or perhaps its just 'red tape' regulation getting in the way.

 

[boeman]

This brings me to wondering what the 18months of valuer education actually gives you!

Nothing.

Which is why becoming a licensed valuer takes longer than 18 months (in WA anyway, unsure on other states).

 

[SOP]

a three year degree and two additional years of employment prior to sitting a professional interview.

but hey your a scientist. you will work out the magic formula.

 

[Rolf Latham]

I'm still waiting at a hint of an "acceptable methodology" if there are truly no recent sales in the vicinity that are at all similar - I don't need to here the secret squirrels detail that 18 months of training gives you, but can a valuer on here give something pls?

Rob

then in all good conscience many valuers will apply some other methodology, and if there isnt anything............... dont be surprised of the val is short............. because short of what ?

In many circumstances where there is a lack of comps, the deal is often sunk because the valuer either wont do the val ( which makes sense) or they need to use comps miles away both geographically and property comparison wise

PS, im not a valuer,I have just worked with lots and lots of them over the years, have a few as clients and they are generally ok with their views.



ta
rolf

 

[tobe]

acceptable methodology is what the two parties decide. as previously stated it might be the average of a couple of estate agents appraisals, it may be a bank valaution, or it may be your own valuation which was instructed as such.

While the valuers methodology wont help in this situation, its usually based on recent comparable sales. this means sales in the surrounding area, with similar properties. similar being number of bedrooms, stories, land size, age of house, age of renovations etc etc. another method might be by calculating the square metre value of new builds, and applying a discount for the age of the property plus the land value based again on recent sales.

As you can see, a valuers methodology can be highly subjective, depending on how 'comparables' are assertained. Get a couple of agents appraisals and split the diference.

 

[mcarthur]

Pending sales mean zero to a valuer, until it's sold it doesn't really matter.

Sorry Brady, my mistake in writing. What I meant was "pending sales" as in "without there being sales...".
Agree 100% that it's-almost-sold means nothing

 

[mcarthur]

acceptable methodology is what the two parties decide. as previously stated it might be the average of a couple of estate agents appraisals, it may be a bank valaution, or it may be your own valuation which was instructed as such.

While the valuers methodology wont help in this situation, its usually based on recent comparable sales. this means sales in the surrounding area, with similar properties. similar being number of bedrooms, stories, land size, age of house, age of renovations etc etc. another method might be by calculating the square metre value of new builds, and applying a discount for the age of the property plus the land value based again on recent sales.

As you can see, a valuers methodology can be highly subjective, depending on how 'comparables' are assertained. Get a couple of agents appraisals and split the diference.

Thanks Tobe - that's what I was starting to understand too.
There are now 3 agents booked for appraisals.

 

[mcarthur]

Nothing.

Which is why becoming a licensed valuer takes longer than 18 months (in WA anyway, unsure on other states).

You're right there for someone straight out of school. Min 2 years at Bond Uni for CPV (http://www.api.org.au/folder/static/accredited-courses-valuation).

Only 2 semesters or 9 months if you already have a degree, which implies that the actual content specific to a valuation credential is about 2 semesters worth at most.