Commercial Valuations

[joyoboyo]

Hi

We are in the process of having a commercial valuation completed. We are being charged a fair whack for this valuation by the bank on a small office.

Aside from the high fees for this and the fact the valuer didn't even visit the premises am I within my rights to ask for a copy of the valuation considering I have paid for it.

Thanks in advance to anyone who has had any experience in this area

J

 

[Aaron_C]

Usually, no. Unless you ordered the valuation through the broker upfront.

 

[Dazedmw]

Hi

We are in the process of having a commercial valuation completed. We are being charged a fair whack for this valuation by the bank on a small office.

Aside from the high fees for this and the fact the valuer didn't even visit the premises am I within my rights to ask for a copy of the valuation considering I have paid for it.

Thanks in advance to anyone who has had any experience in this area

J

I'm surprised the valuer didn't visit the office suite, they would be in breach of the API guidlines if they completed a valuation without a full inspections. As far as I know kerbside commercial valuations still aren't a done thing.

The report is addressed to the bank and belongs to them. If the bank wants they can forward you a copy but the valuer won't (well, shouldn't) forward you a copy.

 

[James m Dawson]

You can lodge a dispute via the bank - the valuer should have inspected it himself and I think now they are not even allowed to use photos etc that they have not taken themselves onsite. I recently disputed a val done by the nab ( they always give me a copy when i ask for it) they said that they will pay for the disputed val if the mistake was not rectified , which in this case was ignoring a close by recent sale. Then I would pay for a new one , so only paying for one. Ive noticed the prices for vals can vary dramatically
james

 

[RightValue]

I'm surprised the valuer didn't visit the office suite, they would be in breach of the API guidlines if they completed a valuation without a full inspections. As far as I know kerbside commercial valuations still aren't a done thing.

The report is addressed to the bank and belongs to them. If the bank wants they can forward you a copy but the valuer won't (well, shouldn't) forward you a copy.

Spot on on all points.

I would question if the valuer did not visit the premises, unless the OP occupies them and knows for certain.

In this regard I would lodge a dispite with the lender. The valuation should have photographs appended to the report that were taken by the valuer at inspection. The valuer should also have on file a plan of the premises or their measurements from the inspection.

This is the sort of thing that can get a valuer kicked off of panels and out of the profession.

So if you are absolutely sure you should persue it.

The bank may or may not give you a copy of the valuation, A lot depends on if you ordered the valuation direct with the valuer or the bank ordered it. If the bank ordered it then there is no relationship between you and the valuer but if you ordered and paid for it (as in paid the valuer not the bank) then you should have a chance of getting a copy.

 

[AXXO]

Hi

We are in the process of having a commercial valuation completed. We are being charged a fair whack for this valuation by the bank on a small office.

Aside from the high fees for this and the fact the valuer didn't even visit the premises am I within my rights to ask for a copy of the valuation considering I have paid for it.

Thanks in advance to anyone who has had any experience in this area

J

So can you make it clear who ordered the valuation and for what purpose?

If it was the bank as part of your financing covenants, then check the loan contract on this point.

 

[chilliblue]

I personally still think it very strange that they need to access the property that they are valuing yet they compare that property to others that they dont.

 

[Aaron_C]

I personally still think it very strange that they need to access the property that they are valuing yet they compare that property to others that they dont.

Well it's all about practicality. If a valuer had to inspect each and every comparable sale then we would never get anything done. Plus presumably the valuer is an expert on comparables anyway so they can understand the difference between them.

 

[Dazedmw]

I personally still think it very strange that they need to access the property that they are valuing yet they compare that property to others that they dont.

Half of a valuer's job, esp with non-residential property, is highlighting risks to the lender. These risks are best identified via an inspection.

Valuers don't need to inspect sales as the bank isn't taking those as security. While it might be good for sales analysis purposes, ideally the valuer has a selection of sales to rely on so if minor issues are missed it doesn't matter so much.

 

[joyoboyo]

So can you make it clear who ordered the valuation and for what purpose?

If it was the bank as part of your financing covenants, then check the loan contract on this point.

Thanks for your replies.

We own and operate out of the commercial premise so we know for definate they originally did not show up

It seems the valuation was never done in the first place. I think the issue is I am dealing through the bank's retail arm and they are then following up with the business lending division. Seems the girl I spoke with had little clue to what was going on. A little upset that she originally said she had it in front of here when evidently she didn't...

So once this was cleared up after a number of calls, I had the valuation done last week and the valuer came to the office, took five minutes; she had no checklist to fill in, she merely took some notes on a notepad that when i looked at it looked like a scribble pad that you doodle on, it was hardly organised... I wasn't that impressed and for $1000 + GST seems a good gig to be on. I agree she needed to write the report up and do some 'research' but geez, easy money. Apparently I am not entitled to a copy either, so that is an end to that

I must sound a real grumpy a hole.. i am not really, just venting

 

[Dazedmw]

So once this was cleared up after a number of calls, I had the valuation done last week and the valuer came to the office, took five minutes; she had no checklist to fill in, she merely took some notes on a notepad that when i looked at it looked like a scribble pad that you doodle on, it was hardly organised... I wasn't that impressed and for $1000 + GST seems a good gig to be on. I agree she needed to write the report up and do some 'research' but geez, easy money. Apparently I am not entitled to a copy either, so that is an end to that.

I guess there isn't much to an inspection of a "small office suite". Two measurements, check the walls meet the unit plan, a couple of photos and some basic construction notes. Did she go down to the basement and check out the car parks?

The hard part is the finding and analysis of sales and rental evidence. That is what you are paying her for, oh and the 7 years of legal liability.

 

[dunno_anything]

we have also previously had valuation done on a commercial property we wanting to buy

had to pay 1-2k for it!
what a rip off I thought!

and worse still, it was definitely below what I thought was the market price.




i was told bank valuation (commercial included) usually come in lower than market, but the particular valuer we choose didnt have a good reputation....

is that true? ie, pay more for a reputable valuer will give higher val??

 

[Aaron_C]

is that true? ie, pay more for a reputable valuer will give higher val??

Not necessarily, but some valuers are really incompetent. Had one case where a valuer valued my house at $1.8m. Next week another one valued it at $2.5m. The first valuer was some young rookie, the other much more experienced.

 

[Scott No Mates]

But even junior valuers have their work reviewed by their managing partner

 

[joyoboyo]

Gets even stranger with how much we get charged for a valuation

Had office 1 valued recently - cost $1000 to value(nice round number, strange that!)

We are just getting our second office valued in the same block, slightly larger, exactly the same in every way and we are being charged $850 for the same

Payment authority the bank sends me says I/ we authorise bank to obtain quotes for valuation and then in next paragraph says please pay $850 for commercial valuation by entering credit card details below

Not too impressed with the way this bank goes about its business.

 

[Dazedmw]

Sounds like you got a discount the second time around!