more val funnies v2.3

[kamchatsky]

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

Maybe all valuers think the market is overheated and all those units should have a much less value?

 

[D.T.]

My place in Forrestfield WA re-val'd for 90k more than i got it for, so I'm fairly happy

 

[Corey Batt]

I have the worst valuer right now. He's been managing two valuations for two new constructed homes (previously subdivided).

He's mucked up on quite a few things but one in particular has really annoyed me: He obviously didnt bother checking market rent and has said that each new 3x2x1 mid spec will only rent for $200wk.

Meanwhile in reality:

http://www.realestate.com.au/property-house-sa-elizabeth+north-412533527

(The houses in question are a better size and spec than this)

http://www.realestate.com.au/property-duplex+semi+detached-sa-elizabeth+north-402469809
(what $200 gets you, a 2 bedroom semi next to the train line.

 

[tobe]

docklands val $25k, or 5% under. a purchase. estate agent wrote a letter with some comparable sales, and, wait for it.... The valuer changed their mind and gave the purchase price. I fell off my chair.

Got a construction val (house and land) back at $30k under, just under 10%. Disputed the val. Valuer calls and tells me price doesnt equal value, and that this builder is changing above industry norms for the area. I said, so if you have to compare the end price to resales in the area, why comment about the buildr being overpriced? The overall price is below the median for the type of house in the area. He went on to tell me how spec homes are much better value than house and land.

Got an ANZ val, came back on the money.

 

[Corey Batt]

docklands val $25k, or 5% under. a purchase. estate agent wrote a letter with some comparable sales, and, wait for it.... The valuer changed their mind and gave the purchase price. I fell off my chair.

Got a construction val (house and land) back at $30k under, just under 10%. Disputed the val. Valuer calls and tells me price doesnt equal value, and that this builder is changing above industry norms for the area. I said, so if you have to compare the end price to resales in the area, why comment about the buildr being overpriced? The overall price is below the median for the type of house in the area. He went on to tell me how spec homes are much better value than house and land.

Got an ANZ val, came back on the money.

ANZ val's have been quite the godsend here lately, cutting away some of the valuer incompetence.

 

[Aaron_C]

Valuer amending the report up???? Come on tobe, this isn't the comedy club.

 

[Rolf Latham]

Reporting back

it gets better

There was a recent sale in the same complexat 420 k and thats where the valuers anchor lies.

from that hen we found a bunch of properties that were comparable in value.

Subject property for val = 2 bedroom

Other sold property in complex 1 bedroom.

So the comparable vals idealogy is a "little" flawed here.

Off to the vals manager of the lender to see when we can use a valuer that sees the difference between a one and 2 bedder

ta
rolf

 

[see_change]

I had a chat with an experienced valuer last week . Reason for low values is litigation / insurance costs .

He is on a particular panel of ten valuers and 7 have been sued .

He knows several who have been unable to get insurance so have had to find another job .

So if it was your job and you have a choice of giving an extremely conservative value which you can " justify " with comparables , or opening your self up to potential litigation and loss of job , career , future livelihood , what would you do .

Seriously , what would you do ? I know I'd have no hesitation of going conservative. Blame the system and the lawyers .

Part of the reason why the medical system is so expensive is for exactly the same reason . Dr's organising tests which are justifiable , but probably not necessary , but if you get the legal system reviewing things later , they will want you to have excluded everything ....

Cliff

 

[Aaron_C]

Well yes - since the valuer works for the bank there is no incentive for them to give a higher value as there is only downside risk to a higher valuation. However, some of the valuations we've been getting are just palpably ridiculous.

 

[Rolf Latham]

conservative is ok, we get that and work with it all the time

Professional malpractice is not ok though,

Using one bed comps to value a 2 bed in that locn is akin to expecting to buy a Benz at Toyota price............with the justification that they both provide transport


ta
rolf

 

[Aaron_C]

Using one bed comps to value a 2 bed in that locn is akin to expecting to buy a Benz at Toyota price............with the justification that they both provide transport

Nice analogy.
I always tell people that as a valuer you can make any property worth whatever you want it to be worth. A vague description of something between 'inferior' or 'superior' in terms of location/size/quality is enough to justify any price. I can make my own house worth anywhere from $800k to $2m by using the right comps.

 

[TMNT]

this is why I put valuers below second hand car dealers and just above diseased cockroaches

 

[Rolf Latham]

this is why I put valuers below second hand car dealers and just above diseased cockroaches

I dont agree with that either, its just some valuers are as unprofessional as many in other fields

In general I find most valuations are well reasoned.

The ones that arent are usually whacko !

ta
rolf

 

[Brady]

I dont agree with that either, its just some valuers are as unprofessional as many in other fields

In general I find most valuations are well reasoned.

The ones that arent are usually whacko !

ta
rolf

Agree with this.

Just by looking at the valer I can tell that won't have issues with the valuation.

Other times you will see a name that you haven't before, this is often a newbie who is fresh out and doesn't want problems.

There are many valuers doing really good work, sometimes especially with hard valuations. But like most things in life people don't often talk about when the right things happen.

But comparing 1 bedroom v 2 bedroom is just crazy. Same thing happens with bathrooms and landsize.

 

[tobe]

The biggest issue I have is Valuers returning the val without enough comparables, or those outside the range.

Lately rather than hunting through to r p data first I just give the valuer a call and explain what comparables mean, ie within 3 to 6 months, similar number of bedrooms, similar location etc. they have said 'oh ok' and got me something the assessor or lmi provider can use.

It just looks like laziness to me, or perhaps a lot of lenders don't pay as much attention to the details of a valuation anymore?

 

[TMNT]

I dont agree with that either, its just some valuers are as unprofessional as many in other fields

In general I find most valuations are well reasoned.

The ones that arent are usually whacko !

ta
rolf

I stand by my comment absolutely

Every one of my last 10 Val's has been a hassle

I've had to get almost three Val's each time, with wildly varying vals

And their comparable vs val ends up making no sense

Eg comparable 1: 300k, subject is superior
Comparble 2: 310k, subject is similar
Comparable 3: 330k, subject is inferior

Final val: 270k

Etc etc

We aren't talking about a packet of cigarettes

For many it's a business, for many it's their only ppor that they've spent 30 years paying it off

I don't want to argue or having to point out what is clearly common sense

 

[RetireRich101]

Valuer are smart people, but in most cases they work too hard for their Client and forgetting what they learn in classrooms.

In a Land Environment Court that I associate with where we paid over $30k in valuation fees, the court hearing ended and waiting for Judge final determination in months to come. Applicant Valuer argues $200/m2, Respondent Valuer argue $80/m2. Trying to get the point across that the Valuers have problem swapping sides and would argue what pleases their client.