Revaluing - How Often?

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From: Ian Redman


Hi All,

My fiance settled last week on our first IP after 60 days settlement period. On the day of settlement the Real Estate Agent rang to say congrats and he informed us that he could sell today for 10k more (6% increase in 60 days!!). My question is this:-

How often can you revalue a property?, Do the valuers give a validity period of time for there valuation?,say 6 months.

Cheers in Advance

Ian Redman
 
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Reply: 1
From: Duncan M


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How nice of him, $10K more.. after you've paid for your stamp-duty on the
purchase as well as the other fees and then paid him his commission on the
sale you'd be out of pocket by a few $1000.

Most generous of him.. are they all that stupid in your area?

Regards,

Duncan.

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<TITLE>RE: Revaluing - How Often?</TITLE>



How nice of him, $10K more.. after you've paid for =your stamp-duty on the purchase as well as the other fees and then paid =him his commission on the sale you'd be out of pocket by a few =$1000.

Most generous of him.. are they all that stupid in =your area?


Regards,


Duncan.




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Reply: 2
From: Jas


I revalued a place after 6 months. The value had gone up by quite a
bit, so I put a new finance app in. The bank requested the original
valuers re-value the place.

They did so, but marked down the value of the place. Annoying, but it
means there's more there for later :)

Jas
 
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Reply: 2.1
From: Rixter ®


Hi Jacinta,

Here's a tip for you ( and anybody else who doesnt know it) when getting valuations done on Ip and getting a shock of the low valuation when it comes back.

There's no point in getting any licensed valuer in to value your Ip as this person may or may not be on the approved list of valuers for your bank. Find out which valuers are on your banks panel and appoint one of those.

Tell them you want a valuation done of the property based on a Fair and Open Market Value. You will find it will come in alot different to a valuation done for lending purposes ( which is very conservative).

Take this valuation to your bank and show them that this is the valuation done on it. Then if they dont like it kindly remind them that it was done by one of their Approved License bank valuers and it therefore must be a realistic representive of the true market value of the property, isn't it?

Well, what more can they say??

Happy Investing,
Rixter :)
 
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Reply: 2.1.1
From: Steve Navra


Hi Ian & Jacinta,

Here is the go:

Put in an application with a different bank, preferably a bank with with no application fees - the new bank will not be aware of your previous banks valuation.

If the new val reflects the growth your property has achieved, go back to your own bank and request the same value by way of an extra facility. If they say no - switch to the new bank!

Hmmmmmmmm, they generally bend rather than lose the business - especially when you wave the letter of offer in their banking faces!

Regards,

Steve
 
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Reply: 2.1.2
From: Shane .


Just in relation to Rixter's excellent suggestion.

We've discovered a bank that only has one valuer on their panel.. when approached, the valuer said they don't do private valuations, only ones requested by the bank!! So make sure you check it out first.

Having said that, they all seem to be quite open about who does their valuations for them..

Shane
 
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Reply: 2.1.3
From: Glenn Mott


Rixter,

You have made my day. About 7 seconds after reading your post, I was on to my bank who provided me with the name of their valuer in my area. A quick call to them established that they could provide a Fair and Open Market Value valuation for 2 properties for less than the cost of most loan application fees.

The next time I go to buy and before the finance application, I will be arming myself with recent sales data for similar properties in the same area, copies of current lease agreements and spreadsheets showing projected rental/capital growth before calling this firm and asking for the highest valuation possible.

This approach seems much better than going "cap in hand" to the bank, filling out the finance application and then having everything taken out of your hands and most likely not getting the valuation that you thought possible which subsequently means you need to have more hard earned cash tied up in the deal.

Slowly but surely, the pieces are coming together...Thanks again Rixter.

Glenn
 
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Reply: 2.1.3.1
From: Frank Shead


Everyone,
It does not matter who does the valuation and how high it is, if they are not on the bank's Panel. What Rixter has to say makes extremely good sense.

Now that you thinking of revaluing, why not do some due diligence your self. Ring 5 real estate agents in the area. Obviously you have to appear rather naive and just starting your climb to success. Get Valuations for all the similar type houses sold by them at the price of sale. Make up a spread sheet and evaluate these prices. Now you have some thing to show your financiers.

My experience is valuers tend to be slow and cautious and it is easier from their point of view to look at at only one lot of sales.
Not 3/4 different ones from other sales areas.

Hope this helps you

Frank Shead
 
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Reply: 2.1.3.1.1
From: Rolf Latham


Hiya Frank

Most valuers are only Human. If Someone does most of the support work and it is credible, the valuer will have a hard time knocking what you provide them with, but by the same token some get really stroppy at our suggestions.

Ta

Rolf
 
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Reply: 2.1.3.1.1.1
From: Waverly Bay


I am also aware of some banks not using panel valuers for individual properties below a certain amount (in one situation, that limit was $1,000,000) !

An inhouse valuer was used - - and the onus was on us to produce credible data.

The in house "valuer" - was not a registered valuer as such...so u can imagine the fun (and ease) we had getting our desired valuation.

Waverly
 
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Reply: 2.1.3.1.1.1.1
From: Dirk Diggler


Couldnt agree more WB. Valuers are only human. A slab of beer and a bottle of scotch and you can get any value you want!
 
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