Properties with "Comparable attributes" to a townhouse?

[Shiloh]

We are wanting to release equity on an IP, a 2 br townhouse.

My questions are:
1. What do valuers consider are properties with "Comparable attributes" to a townhouse?
2. If we pay for a valuer to value our property, will that valuation be taken into consideration by the bank when trying to draw down on equity to buy a new IP, or will they only rely on their own valuation? ie rendering the exercise of getting it valued rather pointless IMHO.
3. Do banks/lenders always send a person to value it from inside and out, or do they use computer-generated reports only? We have extensively cosmetically renovated since buying it, and have never yet had it valued.
4. The only property information for free I can find is on allhomes.com.au (wollongong area), and it's not comprehensive although good for what it has got. I can see RP Data has good reports; does anyone recommend other free/paying sites to find out sale prices on properties?


The Residex report on our property value came back (315-350k, from recent sales we were expecting 360-380k). The lowest ranked for us of the five Residex criteria was on “comparable sales: value based on sales in the local area of properties which have comparable attributes”. The accompanying list of ‘comparable’ properties were in fact all or mostly 2b/r units. Not townhouses or villas. Nor houses, although interestingly in the statistics (eg RPData), it states in API magazine for example, that ‘townhouses are included in houses’ in reports, and not with units.

I know these addresses used in the ‘comparable sales’. Some were, for example, tired units of about 55m2 in block of 15. Or 2 b/r approx 65m2 in a large complex of 80 in a light industrial rather than residential area. Ours is a townhouse in a quiet residential area with total land about 110m, 2 storey, in a block of five. So, the 'comparable sales' do not seem to be comparable at all.

I have since walked around all the streets within a 1km radius and noted the townhouses or villas, because to me that's the most similar type of dwelling.

"MY list" of comparables is:
- land size
- type of dwelling ie villa or townhouse with private outdoor area
- no. of bedrooms
- 1 km radius to ours
- ideally sales in 3-6 months but they are thin on ground
- in the notes: street view condition/maintenance and approx age

Am I on the right track or wasting my time? nb we had LMI on the original purchase of the first home (now IP), and the main use of the valuation will be to get new loan.

Now I’m trawling through trying to find sale prices of any of these ‘comparable’ properties. The purpose will be to present it with photos and notes to a valuer, we plan to get our place valued in the next month.

 

[pennyk]

The bank wont use your valuation... they will still get their own.

But you can get a "pre-valuation" done by some banks, so you know that the valuation is close to what you need before you submit an application to the bank.

The valuer will still do all of the comparable properties work.. so apart from your own education, its not necessary to do all the work that you are doing.

 

[Rolf Latham]

We are wanting to release equity on an IP, a 2 br townhouse.

My questions are:
1. What do valuers consider are properties with "Comparable attributes" to a townhouse?
2. If we pay for a valuer to value our property, will that valuation be taken into consideration by the bank when trying to draw down on equity to buy a new IP, or will they only rely on their own valuation? ie rendering the exercise of getting it valued rather pointless IMHO.
3. Do banks/lenders always send a person to value it from inside and out, or do they use computer-generated reports only? We have extensively cosmetically renovated since buying it, and have never yet had it valued.
4. The only property information for free I can find is on allhomes.com.au (wollongong area), and it's not comprehensive although good for what it has got. I can see RP Data has good reports; does anyone recommend other free/paying sites to find out sale prices on properties?


The Residex report on our property value came back (315-350k, from recent sales we were expecting 360-380k). The lowest ranked for us of the five Residex criteria was on “comparable sales: value based on sales in the local area of properties which have comparable attributes”. The accompanying list of ‘comparable’ properties were in fact all or mostly 2b/r units. Not townhouses or villas. Nor houses, although interestingly in the statistics (eg RPData), it states in API magazine for example, that ‘townhouses are included in houses’ in reports, and not with units.

I know these addresses used in the ‘comparable sales’. Some were, for example, tired units of about 55m2 in block of 15. Or 2 b/r approx 65m2 in a large complex of 80 in a light industrial rather than residential area. Ours is a townhouse in a quiet residential area with total land about 110m, 2 storey, in a block of five. So, the 'comparable sales' do not seem to be comparable at all.

I have since walked around all the streets within a 1km radius and noted the townhouses or villas, because to me that's the most similar type of dwelling.

"MY list" of comparables is:
- land size
- type of dwelling ie villa or townhouse with private outdoor area
- no. of bedrooms
- 1 km radius to ours
- ideally sales in 3-6 months but they are thin on ground
- in the notes: street view condition/maintenance and approx age

Am I on the right track or wasting my time? nb we had LMI on the original purchase of the first home (now IP), and the main use of the valuation will be to get new loan.

Now I’m trawling through trying to find sale prices of any of these ‘comparable’ properties. The purpose will be to present it with photos and notes to a valuer, we plan to get our place valued in the next month.

Hi shilo

The are ways with many lenders where you can get your onw valuation and sue the outcome withe the lender.

Your post suggests u will be stuck with your current lender sine you have paid lmi and will want to reuse that premium previously paid.

Hopefully you are with a lender that wil allow a Val pre application, or it's can be done in such a way that you can get your own.

Pls note a values will generally use townhouse or villa comps if they can get them. If comps are hard to find u may find your lender and lmi provider won't like the Val in any case.

Ta

Rolf

Ta
Rolf

 

[Aaron_C]

Valuers always find properties that sold which are similar to yours in location/type and which are either better or worse than your property. They recognise the type of fitout of the property, the land size and the general appeal of it. But of course it's sometimes more of an art than a science.