Preparing for a Valuation

[digs75]

I'm working with a broker at the moment to do a refinance and order a valuation on my IP.

To get the best valuation possible what advice/actions can I take or is it in the 'lap of the gods' so to speak ?

What I will provide for the valuation are :

- Report on recent property sales in the area of similar properties.
- Ask for a walk-in valuation rather than desktop.
- anything else ?

 

[Rolf Latham]

I'm working with a broker at the moment to do a refinance and order a valuation on my IP.

To get the best valuation possible what advice/actions can I take or is it in the 'lap of the gods' so to speak ?

What I will provide for the valuation are :

- Report on recent property sales in the area of similar properties.
- Ask for a walk-in valuation rather than desktop.
- anything else ?

Hi Digs

use a lender that allows upfront vals. If your incumbent doesnt, then think hard about moving unless its hard to do so for LMI or product /serviceability reasons.

Many lenders such as ANZ, AMP, WBC, NAB cba ( at small cost) etc will allow a val before appln.

A desktop can be useful to you in some circumstances such as your property is well below median for the burb, your place doesnt present well compared to others etc .


ta

rolf

 

[Mick C]

I'm working with a broker at the moment to do a refinance and order a valuation on my IP.

To get the best valuation possible what advice/actions can I take or is it in the 'lap of the gods' so to speak ?

What I will provide for the valuation are :

- Report on recent property sales in the area of similar properties.
- Ask for a walk-in valuation rather than desktop.
- anything else ?

If the property is well presented and "unique" then ask for a full val...if it's pretty ordinary but the market has some good past sales in the last 6 month ( because of the FHOG rush etc...) then go for a lender that will do it as a kerb or desk top one.

To help the valuer determine a good "fair" value, i always provide the valuer with some of the following;

1. Recent ( comparable features) 6 sales in the last 3 month within 1km
2. Any invoice for any work that has been done to the property in the last 3 years
3. Quotes on any work that WILL be done
4. current tenancy agreement ( if it been running for more then 18 month) and if it's a IP, and the area is driven by rent.

if you know the area well, some lenders allow you to choose the valuer as well ( this is normally available with the smaller lenders)

P.s alwasy ask you broker for 1-2 desktop val ( RP? APM? PF? ANZ?)

Regards
Michael

 

[Aaron_C]

I've had pretty good experiences with desktops, not so much with kerbsides.

 

[RightValue]

1. Recent ( comparable features) 6 sales in the last 3 month within 1km
2. Any invoice for any work that has been done to the property in the last 3 years
3. Quotes on any work that WILL be done
4. current tenancy agreement ( if it been running for more then 18 month) and if it's a IP, and the area is driven by rent.


Michael

1. Can help if they are truly comparable. Need sale date (not just month) and agents contact details so the valuer can confirm the details. Few things annoy me more than selective sales evidence presented by an anxious homeowner.

2. A waste of time. Cost does not equate to value. If the valuer cannnot see it then a purchaser will not see it.

3. Absolutely immaterial. The valuer is valuing the property as at the date of inspection, as it is, what you intend to do is of no relevance to the valurer at that inspection date.

4. Tenancy agreement may be of interest as the valuer needs to make a recommendation as tot he current market rental but the length of tenancy is immaterial.

To the OP, there is very little you can do to affect the valuation.

Nothing you do will change the land nor its features. Nothing will change the size or the age of the dwelling, nor the quality, bar you renovating between now and the inspection date.

As a valuer I do not care how much of a pig sty your place is nor how neat it is, these are a reflection of you and not your property value.

I cannot speak for other valuers but following me around and pointing out to me that the room with the washing machine and the laundry tub is the laundry, or the room with the shower and vanit in it is the bathroom, or the room with the kltchen sink and the stove in it is the kitchen is a good way of annoying me. If I have any questions I will ask you. No matter how much you annoy me or blow sunshine up my backside it will not affect the value.

Generally i just want a nice friendly person, happy to have an innocuous chat.

No matter how much I like you or your furniture, or despise you or your toy/lap/rat dog, it will not change the land and the building nor will it affect the value.

Much as I may want to undervalue your property if you annoy me or overvalue your property if I like you it will not affect the value I put on your property and that is determined by analysis of a variety of sales evidence.

cheers

RightValue

PS: If you ask me how I value a property the answer will be... carefully.

 

[newbuilder2012]

property valuers..........most of them have no idea how to value a property properly anyway...they are the ''slaves'' of the banks, if a bank tells them we need ''xxxxxx'' amount they stamp that amount, dont ever believe a valuer when they say that banks have no say.

if they don't do as the bank instructs them like a puppet then they won't have another property to value from them

they undervalue so there ''masters'' are safe if it comes to repossession time.

 

[Rolf Latham]

property valuers..........most of them have no idea how to value a property properly anyway...they are the ''slaves'' of the banks, if a bank tells them we need ''xxxxxx'' amount they stamp that amount, dont ever believe a valuer when they say that banks have no say.

not my experience to any major extent after 13 years and a few deals.

Sometimes a valuer may call and let us know the val will be x short, is this going to cause a problem, and if it does, do we have any further data to support our val request.

Again,just my experience, valuers generally get it right. Like all humans, when they have a different opinion on a deal, often ( but not always) there is little point fighting that....move on and choose a diff lender and a diff valuer.

Depending on the specific stock item and the prevailing market a 5 to 10% variation in vals across 3 or more valuers is not unusual.

Choose the valuation that works


ta
rolf

 

[newbuilder2012]

During a refinance about 2 years ago, i was moving from anz to ing the ing valuer came valued it $780k then i didn't complain because i didn't need the value high to get $ i got what i needed, so 2 months later after the deal was done i got an independent valuer they valued it $810k.


VALUERS are INSTRUCTED to do as they are told like puppets to protect the bank they are working for, they value it less so when a repossession happens, legal costs, holding costs, real estate etc...

 

[Rolf Latham]

During a refinance about 2 years ago, i was moving from anz to ing the ing valuer came valued it $780k then i didn't complain because i didn't need the value high to get $ i got what i needed, so 2 months later after the deal was done i got an independent valuer they valued it $810k.

Suppose my problem is Im a scientist by background......... and O prefer hard data over conspiracy theory.

Using your model as an example, on the general variations we get on vals, there is a 50/50 chance that if we did 3 vals, that we would have got 3 bank vals of .................

780 (assuming yours was the worst) with another around 820, and another around 855.

The mean market value would therefore be around 820 with a 5 % swing either side, which looks large but is statistically and practically acceptable.

I see the "bank influence" theory as pretty fluffy these days with major agencies like Valex, Sandstone and VMS in the way of the lender and the valuer. The past may have been different, and I cant comment on that.

There are so many valuers out there, and ex valuers out there that if there was creedence to the conspiracy theory, some birdy would have sung long ago.


ta
rolf



ta

rolf

 

[matto_]

valuation - part art, part science.

In terms of how the property "looks" - I cant see how a valuer can truly look past a property that is truly messy in comparison to if the same property looked schmick.

 

[newbuilder2012]

PLUS........... who cares what a valuer values it? it's what someone is willing to pay for it, taking there values seriously makes you stupid like them.

 

[Aaron_C]

I agree Matt. I don't accept that the cleanliness/presentation of the property has no impact on the value. Valuers are human like all of us.