more val funnies v2.3

[Rolf Latham]

Client buys a property in the inner sw of syd for a pretty good price of 440 k a the time

Lenders valuer agrees even at an 95 % lvr

So............ so near 18 mths later, and great val results through the area reflecting the strength of the market client suggests we obtain a val.

so we do ask for a full val

Let me canvass some estimates from peops here that know the Mareekaville corridor

For those that dont, let me help you a little

the valuers comments are..................

Prior Sale(s)
of subj. property: /11/2012 $440,000 market movement since purchase
* within past 3 years
Level of Market Activity
(sales): Strengthening Sales Activity

the lenders desktop val provides for a value range of 450 k to 585

So what did the FULL val come back at ??



ta
rolf

 

[Peter_Tersteeg]

I'm betting about 15% less than the purchase price.

I've got a couple of very strange valuation results. The valuation actually came back higher than the clients estimate in not one, but two different cases. Totally freaky!

 

[D.T.]

Ill put a dollar on 440k result

 

[dex]

360 - 380.

 

[Richard Feynman]

Well, since everyone else went under, I'm going with $600k.

 

[allsuccess]

330 to 380

 

[The Fence]

knock us out Rolfy...

 

[impala67]

...the lenders desktop val provides for a value range of 450 k to 585

So what did the FULL val come back at ?..

$450 K

 

[D_One]

I'm with Richard, $560k

 

[neK]

so has the bank val come back or you just making us squirm

 

[Rolf Latham]

meh

I just wanted to get a good spread of what peops thought was reasonable using

1. The previous sales price
2. The state of the market since then and now

410 000

Still awaiting feedback from the valuer as to their "typo".

ta
rolf

 

[Aaron_C]

lol, just lol.

 

[impala67]

$410K

Laugh...or cry?

 

[Rolf Latham]

$410K

Laugh...or cry?

restored my confidence that even valuers get it wrong sometimes ; )

ta
rolf

 

[The Fence]

Obviously a typo should be $510...?

 

[Rolf Latham]

Obviously a typo should be $510...?

youd think so, but the fact that comp sales that he has provided around thr 400 to 450 mark are all sub standard one bedroom units,its obviously not

I have made the comment to them as an "out" , because its simply not justifiable in any other form

ta
rolf

 

[RetireRich101]

the desktop val is $517K (averaging the low and high), so I stick with that guess.

 

[Deltaberry]

Half our collective brain power on this forum combined probably has a better grasp on Australian property values than the entire valuation industry in this country combined with New Zealand's

But hey, that's why we're doing the buying, they're doing the busing (to work every morning).

 

[TRAG]

Valuers spooked ?

I heard somewhere that if the valuer quotes a figure (say $440K in this case) and at any stage in the future, it has to sell and fails to reach that price, the bank can seek recourse from the valuer for the DIFFERENCE between the val and the actual sale price (as the bank lent the money on their val).

The valuers indemnity insurance I think pays the actual $ difference, but then the premiums for the valuer goes up. Before the GFC they were confident the prices would go up and were happy to make the val almost anything you wanted.

Since the GFC they find the LOWEST comparable sale, knock a few thousand off it just in case, and seem to submit that valuation to 'cover their backside'.

Has anyone else heard about this or had any experience of outrageously LOW valuations recently ? (besides Rolf..)

 

[kamchatsky]

I heard somewhere that if the valuer quotes a figure (say $440K in this case) and at any stage in the future, it has to sell and fails to reach that price, the bank can seek recourse from the valuer for the DIFFERENCE between the val and the actual sale price (as the bank lent the money on their val).

The valuers indemnity insurance I think pays the actual $ difference, but then the premiums for the valuer goes up. Before the GFC they were confident the prices would go up and were happy to make the val almost anything you wanted.

Since the GFC they find the LOWEST comparable sale, knock a few thousand off it just in case, and seem to submit that valuation to 'cover their backside'.

Has anyone else heard about this or had any experience of outrageously LOW valuations recently ? (besides Rolf..)

Yes I just had my PPOR valued (by visit, not desktop) by ANZ and St George. It was approx 10% (100K!) less than the market value. The broker indicated that is the price is for when the house needs to be sold quickly to recover the costs. Hence the lower value applied.

What it almost means is that I "lost" potentially 100K worth of equity. Thank goodness I still have enough equity to buy my OTP IP house though.

I do notice that some of banks' valuation is lower than the purchase price of units, forcing the buyer to cough up cash to make up the price difference. This is especially true for OTP units. Lucky my IP valuation is exactly the price I paid for it.