Banks Valuation Differences

I would like to know how the major banks look at valuations?

My current PPOR home is still been renovated and I don't want to get a full valuation until most of the work is complete. ANZ have approved an IO loan but the valuation on my home is not as much as I would have liked. So to get the finance I would like I have to let them come through and completely inspect my home to get a proper valuation. That wouldn't be so good as most of the renovations are only half finished and my home looks like a building site :p

Westpac have also approved me for a loan but I'm not sure yet what they would do with the valuation?

So do you think Westpac would put around the same valuation (without inspecting the home) as ANZ on it or can the banks vary in the valuations?

Are there other banks that are better in this area?
 
Monsoon,

Sounds like you had a desktop val done. Or a kerb-side or drive by val. These will most always be lower because they cannot see any work done inside and they can only compare with other comparable recent sales.

If you want a full walk-thru val to get a higher price, you'll need to finish off the reno. :(
 
Yes I guessed they just put a value on from sales data.

I'm still wondering if banks can have variations in their desktop valuations or do they all use the same system/data?
 
Don't get the house valued if it is still a building site!.

The valuer will have to risk rate your property to an extent that will reduce you LVR.

Mortgage insurers will have kittens and you will be history if you don't have a servicable kitchen or bathroom (the dwelling will not be considered habitable if you can't cook or crap).

Also the valuer is valuing the property as if it went on sale at the day of inspection, as inspected. Generally the valuer will work out a market value for the property as if complete - probably to an average standard; and then deduct cost of completion and a big chunk for impared saleability.

$10k of undone work can reduce the valuation by $40k or more, depending on the market.

cheers

RightValue
 
Don't get the house valued if it is still a building site!.

The valuer will have to risk rate your property to an extent that will reduce you LVR.

Mortgage insurers will have kittens and you will be history if you don't have a servicable kitchen or bathroom (the dwelling will not be considered habitable if you can't cook or crap).

Also the valuer is valuing the property as if it went on sale at the day of inspection, as inspected. Generally the valuer will work out a market value for the property as if complete - probably to an average standard; and then deduct cost of completion and a big chunk for impared saleability.

$10k of undone work can reduce the valuation by $40k or more, depending on the market.

cheers

RightValue

ok thanks for that advice. Well it's probably not as bad it sounds, in fact everything works fine like bathroom & kitchen etc but the main problem is only some of the house is painted, it's taking awhile with the outside taking up a lot of time as it hadn't been painted for years and the old paint has to be grinded and sanded down. The main things are that if they came around now I would have to spend at least a day to clean up the house, only one room is painted and then it still needs the trim painting. The old paint inside is very sickly and once finished it would bring it up so much better. The outside is going to have a full coat of primer finished in new few days but there is still going to be another week or more to get all that done. The landscaping is only half done and it would take another 2 days to get it looking presentable. There is quite a bit to do and I got the house quite cheap as I knew it had many things I can improve on. I'm still going to need another month before I complete the renovations.

So although it's quite livable as I live there myself, it is certainly not ready for a valuation and I have explained that to my broker. So now I will have to just accept the small loan or take a risk and go back to Westpac and see if they want to also do a full inspection.
 
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AS RV said

I have had a loan put on hold by a certain securitised lender, because my clients property was "substantially incomplete" ............the door furniture was missing :)

I personally wouldt take the risk.

In terms of desktop vals, there are systems they all use, interestingly even there you can get a 10 % variation on a desktop or a modelled estimate.

ta
rolf
 
AS RV said

I have had a loan put on hold by a certain securitised lender, because my clients property was "substantially incomplete" ............the door furniture was missing :)

I personally wouldt take the risk.

In terms of desktop vals, there are systems they all use, interestingly even there you can get a 10 % variation on a desktop or a modelled estimate.

ta
rolf
Yes RV's advice is top notch and I was reading the other Valuation thread where he posted about how a valuator works, very interesting.

Yes it could be worth asking Westpac what they will value the house at. I will have to decide if I can find a property in the small price range, which looks difficult or then see what Westpac will do and if that doesn't work out I will have to wait until I complete renovations.
 
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