Bank Valuations

W

WebBoard

Guest
From: Mojo Jojo


Just a tip to any newbie out there applying for a loan, when asked what your existing property is worth, always put a much higher value than what you actually think its worth.

I had my existing home and two IPs valued last week by the bank. My home came in at what I had written down and the 2 IPs at the price they were bought for. One of the IPs was bought off the plan 7 months ago. I asked the guy at the bank how they justify the charge of around $400 when obviously they don't do too much to find the real value of the properties. He couldn't and suggested I put a much higher value next time I fill in a loan application.
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1
From: Bernie Phillips


I had the exact same thing happen. I was discussing a minimum price (280k) with the bank manager over the phone. When the valuer turned up on the doorstep his exact words were "Yeah this is worth 280 easy". Guess what the value came back at - that's right 280.
Go high and let them do some work to find out if/why its not worth it.

Cheers

Bernie
 
Last edited by a moderator:
Reply: 2
From: PT Bear


I've had similar experiences. I thought it was worth $250k. Asked for $265k and got $260.

I'd suggest being a bit outrageous. When asked what you expect it to be, they're only asking for an opinion. It's just an opinion and if the valuer agrees, that's great. If they don't agree, too bad.

PT_Bear
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1
From: Ron Bennie


Hi
I had my house valued at 450k because I suggested it to the valuer, the bank accepted it on my first loan. The next 2 loans the bank changed it to 350k ?? We are currently applying for another loan and my broker is telling the bank it is 450k, it will be interesting what figure they accept this time.

Ron
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 3
From: James Spry


AARRRGGH!!
Now I now why!!
At least I'm not the only one. Pity I didn't read about this a few months ago.

We recently upped the limit on our LOC to get started purchasing IP's. At the time we told our banker that we thought our property was worth $180k. But before getting our property valued we decided to do a few kitchen improvements, to up the value a bit. We even gave a whole heap of supporting evidence to the valuer, and told her that a house only THREE doors away sold for $205k the weekend previously. All well documented, and presented so she didn't even have to do any hard work herself. But guess what. Valuation came in at $178k. I guess when you pay the piper you call the tune...

You don't have to be dead to be stiff but it helps.

I'll try and learn from other peoples mistakes as well as my own.

Thanks,

Jim Jim the Monkey Boy

PS - anyone had any bad experiences trying to convince banks, after purchasing below market value, to refinance at market value? Or do you just multiply your estimate by 10%?
 
Last edited by a moderator:
Reply: 3.1
From: Robert Forward


Hi Jim

I had a prob with one of the major 4 in refinancing a property that I purchased at about 60% of FMV 5 months previous. I sent along with my app a copy of RP Data for the area showing that the latest sales were 40-60% more then my purchase price and contact names of local RE Agents that were happy to talk with the banks valuers. I know the valuers didn't call any of them. I did however get my valuation increased but only by 10%, so I told them I was walking, they didn't believe me.

I applied for a loan at AMP Bank and got a 30% increase instead. And this was with supplying them with the same info that I supplied the other bank. What was funny was 20mins after settlement on the day of settlement I got a call from my personal banker asking what they could do to keep me..... I laughed.

Cheers
Robert

The Sydney "Freestylers" Group Leader.

PS: "Be Not Afraid Of Growing Slowly, Be Afraid Of Only Standing Still."
 
Last edited by a moderator:
Top