Benefit of independent valuations?

From: Peter Martin

A question for the brokers and finance experts:

I'm currently setting up an LOC on my own home and going through the process of choosing a valuer.

I am consistently being told by (3) banks and (2) brokers that unless I deal directly with a major bank at the branch manager level the bank will not recognise any valuation I have done, even if it's from a valuer on their own panel. They are telling me that if the bank's central admin has to approve the loan they will always get their own val.

Does this sound right? Kind of defeats the purpose of getting your own val doesn't it? Is the answer just to keep shopping around?

Thanks in advance,
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Reply: 1
From: Phillip Sharp

Hi Peter,
I hear what you are saying. The banks are really just protecting their own loan. The banking bureaucracy can me mind boggling at times.
One thing I will say, is if the bank valuation allows you to get the loan you can be sure that the property is worth more as they tend to be over-conservative.
When it comes to sell I would definitely get an independent valuation. It will be a good place to start when contemplating a reserve.
Lots of luck
Phillip J
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Reply: 2
From: Victor Mann

Hi Pete,

When you are ordering the val, the valuer is working for you. The bank could rightly assume that you may influence the valuation in some way, or have some connection with the valuer etc etc. If the valuation is ordered by the bank the valuation is directed to the bank for its assessment. This is not always the case and other valuations can be on some occasions be accepted but is the principle behind what you have been told
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Reply: 3
From: Pierre .

A few months back I wanted to have a house revalued - I knew it was valued at a lot more than I paid for it. I asked my personal banker (with the NAB) for a list of her panel valuers, and asked whether she would accept a valuation by one of their panel valuers. She told me this was fine, and gave me the name of a valuer.

I ordered the valuation, and was present when he turned up. I had done some research into comp. sales in the area and presented them to the valuer to help get the highest possible valuation. We received the valuation and which was as high as I had wanted and expected. I then took the valuation to the bank, and as promised - they accepted it.

So, ask and ye may receive. If the3 bank you are dealing with does not want to play the game, pressure them to do so. If they still refuse, find a bank that will meet your requirements.
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Reply: 3.1
From: Owen .

That's interesting. I asked the same question of the NAB and was told they don't use outside valuers but their own internal panel. They did a 2nd-gear valuation and I insisted they come back and do a proper internal viewing. I met the guy, did the tour and got $95k added to the value of my house. He claimed he had incorrect information the first time around. My information still proved the new valuation given was a bit low but he was working for the bank after all.

Lessons learned...
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