Peter - there is a difference between matters of opinion causing variance and being conpletely and utterly wrong. This is why I always fo upfront valuations for my own things. I don't care if it is top end (which is more susceptible to bad vals as you point out) but the better explanation I think is that any sales can be used to fit a narrative. The bank doesn't know as they rely on the valuer.
If the valuers had that much clue, they wouldn't be doing valuations. They'd be investing!!! In $2.5m properties!!!
part of the challenge here is that in reality this might be "white picket fence" syndrome.
unless a property is really poor compared to its comps, it wont influence the val much. for median priced props, you can have a place with a 80s but functional kitchen, and an identical house with new 70 k kitchen with Gaggenau appliances blah bah,it wont add more than 10 or 20 k because these are owner specific trinkets.
ta
rolf
I just had a real estate appraisal back. She said she drove around the whole suburb and there was really nothing to compare it against and no sales. As I'm one street away from another suburb she's using some of their sales in the streets closest to mine. She's valued it at $100,000 to $140,000 more than bank valuation which is where I see it too.
My house is similar to this, same builder, but has a few more rooms, not as modern, no pool, but much bigger block.
http://www.realestate.com.au/property-house-wa-morley-111451095
Bank valuer valued mine as $10,000 less than this.
http://www.realestate.com.au/property-house-wa-morley-110994923
im thinking you are being a little personally involved here
Perhaps, take the emotion out of it.
Once you have established that you have an alternative, and you arent "bonded" to the valuer , your will be more detached with the outcome, and believe it or not, the valuer will pick up on this subconciously, and I believe you will have a better val.
All the logical, left hemisphere folks are thinking, whats Rolf smoking.......... but thats my experience.
Many times we try and force things only to find that wasnt our "true" path.
If you are dependent on accessing the equity, and there is 80 000 available from another valuer thence lender, and that can be geared to add 500 k to your portfolio, how weeny will a 10 k break fee look in 20 years time ?
Am I saying you should break your loan? No,Im suggesting you do the homework and see if its viable, then if your incumbent valuer still thinks your equity isnt there ............ then you have options.
Dig the well before you need the water might be apt here
ta
rolf
Thanks Rolf, all your advice is very helpful. I was thinking yesterday that maybe I have outgrown this lender and I feel they are holding me back. They are being a bit conservative but they did mention they would be happy to lend again. I asked to borrow an amount and on the screen it came up I could borrow more, which they downplayed. Current LVr is about 50% so I don't badly need higher Val, but would like to maximize borrowing. I have LVR of about 50%with another bank also so I do have a back up.
I just got some info from a real estate agent showing a sale of a comparable house in this suburb two months after my bank val. Property is more dated and has double carport rather than my double garage and it sold for $55,000 more than my bank valuation. Good to have that piece of information!
Not the banks, but in many instances the valuers are conservative.
