Bank Valuations

[Monty Burns]

What recourse is there when bank valuations come back substantially lower
than what the local RE market is selling similar houses for???

we're not talking about 10k or so but a 6 figure sum.
most of the reno work was not in the report and it was valued against 3 bed room houses instead of the 4 bedroom that it is.

This wasn't a drive by valuation but a visit.

 

[craigb]

i am suffering terribly from such, HTW were the culprits, and dispite my five page submission on how they were wrong and major up to date evidence, the conceded i have very good evidence, they were not willing to change the value,
check what other valuers are on the banks panels, tough times bud!

 

[Spectre]

thats a wrong val.

go to your bank/broker and get a check val done. I've done a few checks for people here and there and 'generally' we find in some cases a few extra hundred thousand - but these arent for your lower end properties obviously. All depends on who youre using.

Who's the lender to begin with

 

[Monty Burns]

I was having a discussion with a couple of guys at work who recently had valuations done and this was the summary from their recent reports.

as such I wont go into more detail.

But my view was there should be some recourse when there is such an obvious mistake.

with the finance markets such as they are. are the valuers just covering themselves by under valuing properties?

 

[craigb]

yes they are and if they are doom and gloomer the valuation will show, they also value generaly as a fire sale price in such cercumstances, i am quite sure the bank pre calls as to your personal cercumstances and tries to regulate your exposure.

 

[Spectre]

Monty

We're seeing a bit of both ways
Eg. had a val in Mooloolaba this week come in 32k under contract price - client still proceeded at full whack.

But that is a case of long term investing and it is seen as money well spent

There is recourse but if you're doing it as a private val then you're basically stuck and it might be time for a reality check.

I think valuers probably will continue to be conservative but if its hundreds of thousands on one property and justifiable then theres a hell of a lot of scope to find some higher ground.

 

[Token Funder]

What recourse is there when bank valuations come back substantially lower
than what the local RE market is selling similar houses for???

we're not talking about 10k or so but a 6 figure sum.
most of the reno work was not in the report and it was valued against 3 bed room houses instead of the 4 bedroom that it is.

This wasn't a drive by valuation but a visit.

a) Make submission to bank
b) Await reply
c) If it comes back unchanged, be prepared to consider the possibility it's correct.

 

[Rolf Latham]

Hiya

Find out what actual comps have been used and then try and find your own to dispute the numbers

ta
rolf

 

[boomtown]

I would get an independent val then push forward on that basis.

 

[devo76]

I just had my PPOR revalued yesterday. $15,000 less than 18 months ago. I could have pushed it and had it revalued. My bank is very good to me.But it did not affect me at this point so i let it go.By the way generally speaking. Do banks under or over value homes when refinancing?

 

[Rolf Latham]

Hi Devo

To be fair, In general, they get it about right.

In 2 out of 10 cases they get it wrong, because the valuer doesnt know the area, is very very pessimistic or plian doesnt do their work properly. In one in 20 cases they get it so wrong you have to question their logic and sanity.

Out of those 20 % that are wrong, Id say 20 % Of those come out slightly above client expectations.

ta
rolf

 

[RightValue]

I Do banks under or over value homes when refinancing?

Banks do not value homes.

Independent valuers value the home for banks. No bank has their own valuers, instead they have a panel of valuation firms they use in various areas.

Face it; in many areas property values are comming back, valuers just interpret the sales evidence.

cheers

RightValue

 

[devo76]

Banks do not value homes.

Independent valuers value the home for banks. No bank has their own valuers, instead they have a panel of valuation firms they use in various areas.

Face it; in many areas property values are comming back, valuers just interpret the sales evidence.

cheers

RightValue

I am not doubting the valuation. Just asking as some people here say they undervalue to be safe and then i hear they overvalue so banks can sell the loan product. I believe mine to be very correct for todays climate

 

[Qlds007]

No bank has their own valuers,

Not quiet true but i understand your comment.