"Secret" valuation
- Thread starter forrestd
- Start date
Bank Vals...........uggh
Hi Forrestd,
What you have experienced is normal...........however it is immoral and something that REALLY gets me ticked off.
It's immoral because it is something that you have paid for and as a result of having paid for it, you should be entitled to FULL DISCLOSURE and be able to see it. You should be able to see if you've done immediately well, so-so or poorly on the deal.
Here is why the banks don't do it. Assume you purchased a property for $80,000. The bank values it and it comes in at $100,000. The bank will happily lend you the $80,000 or more. However if the val comes in lower you will only be able to borrow 80% of the valuation. Of course you may be able to gear up and use mortgage insurance to borrow 95% or even 100% of the valuation. Basically this "system" ensures that the bank maximises the level of security it has in the deal.
A good albeit "naughty" mortgage broker might tell you what the val came in at.
Anyhow.........thats my rant for the day. Best of luck with the purchase.
Hi Forrestd,
What you have experienced is normal...........however it is immoral and something that REALLY gets me ticked off.
It's immoral because it is something that you have paid for and as a result of having paid for it, you should be entitled to FULL DISCLOSURE and be able to see it. You should be able to see if you've done immediately well, so-so or poorly on the deal.
Here is why the banks don't do it. Assume you purchased a property for $80,000. The bank values it and it comes in at $100,000. The bank will happily lend you the $80,000 or more. However if the val comes in lower you will only be able to borrow 80% of the valuation. Of course you may be able to gear up and use mortgage insurance to borrow 95% or even 100% of the valuation. Basically this "system" ensures that the bank maximises the level of security it has in the deal.
A good albeit "naughty" mortgage broker might tell you what the val came in at.
Anyhow.........thats my rant for the day. Best of luck with the purchase.
Secret Valuation
Hi Forrestd
I have never had any problem obtaining valuations from my lender ( Westpac )
Although I do have a very good relationship with the Lending Officer to due to the amount of business contact I have with her over I.P.s Maybe you need to work on this aspect. I do not know how many properties you have but maybe you could approach the Lending Officer and state that you need to know the valuation so you can work out your L.V.R. in preperation for your next approach to them for finance for the purchase of your next property. Might just work. Best of luck.
Corey.
Hi Forrestd
I have never had any problem obtaining valuations from my lender ( Westpac )
Although I do have a very good relationship with the Lending Officer to due to the amount of business contact I have with her over I.P.s Maybe you need to work on this aspect. I do not know how many properties you have but maybe you could approach the Lending Officer and state that you need to know the valuation so you can work out your L.V.R. in preperation for your next approach to them for finance for the purchase of your next property. Might just work. Best of luck.
Corey.
You’ll be hard pressed to get the actual report itself. However at the end of the day all you want to know is how much was it for. Some lenders won’t tell you this (including us brokers) so to get around this wee snag ask them, “how much can I borrow before I have to pay Lenders Mortgage insurance?” We all know LMi cuts in at 80% LVR so the maths is then easy. They say “Sir you can borrow $320000 before we have to charge LMi” (they should call you sir by the way :O) Then take your $320000 divide by 80 and multiply by one hundred, wooshka you have the val. I understand your frustrations, hope this helps.
I think we've come full circle. This is not a big deal for me personally, yes the bank officer will tell me the numbers, but will not let me see the report. What are they hiding? I've paid for the report, what is the problem? Some people have hinted at the reasons and I'm inclined to believe them, unless this report was nothing other than a casual "drive-by" and there is no report to speak of anyway. Whatever, it's of no real consequence, i'm not trying to max out the LVR or anything.
Interestingly, with my previous property transaction, i asked the bank who their panel valuer in the given area as I wanted to get it valued upfront (for other reasons). They went to great effort to discourage me.
Interestingly, with my previous property transaction, i asked the bank who their panel valuer in the given area as I wanted to get it valued upfront (for other reasons). They went to great effort to discourage me.
Hi Forrest
Actually you dont pay for the val :O)
Lenders will tell you that the valuation is their IP, and your app fee is exactly that, its a fee to process your appln.
Its all about limiting risk for the lender. The probem for many of them is they will (and have been) sued for neglecting a basic duty of care.
Generally, and in reality its usually not a big deal, that is of course providing you dont have the Ips and PPORs cross collateralised. THEN there is an issue
ta
rolf
Actually you dont pay for the val :O)
Lenders will tell you that the valuation is their IP, and your app fee is exactly that, its a fee to process your appln.
Its all about limiting risk for the lender. The probem for many of them is they will (and have been) sued for neglecting a basic duty of care.
Generally, and in reality its usually not a big deal, that is of course providing you dont have the Ips and PPORs cross collateralised. THEN there is an issue
ta
rolf
A recent situation where disclosure of valuation would have alerted , niave purchasers, 2 tiered marked as happend on Gold Coast + elsewhere , where valuation was substantially LESS than purchase price.
Bank lends money to person since they have enough equity elsewhere.
Bank lends money to person since they have enough equity elsewhere.
We are with St George at the moment and they usually give us copies of the valuations.
Valuation
Hi,
the last finance application I prepared involved getting a number of properties valued. I engaged Herron Todd White, paid I think around $750 per valuation, and received a comprehensive report on each property. I gave the bank a photocopy of each and they were happy. In the past, the bank did the valuations, probably as you say a "drive past", but I find if you are proactive and prepare a professional finance "argument" it helps your prospects.
Regards,
Rick
Hi,
the last finance application I prepared involved getting a number of properties valued. I engaged Herron Todd White, paid I think around $750 per valuation, and received a comprehensive report on each property. I gave the bank a photocopy of each and they were happy. In the past, the bank did the valuations, probably as you say a "drive past", but I find if you are proactive and prepare a professional finance "argument" it helps your prospects.
Regards,
Rick
I got a copy of my valuation but only after stating to the mortgage co that I was not going to sign the final paperwork until I had a copy. I made a point of telling them that there were many other lenders out there that would be happy to have my business.
Having a copy was not the issue... it was the principal that on the application it stated clearly that I was to pay for the valuation and as such anything I pay for I believe I am entitled to. I did ring Consumer Affairs and the banking ombudsman to query this and was told there was no ruling as such and that it was pretty much up to the banks to do as they choose.
I was advised however that the only way this situation would change would be to complain to my local member.
Donna
Having a copy was not the issue... it was the principal that on the application it stated clearly that I was to pay for the valuation and as such anything I pay for I believe I am entitled to. I did ring Consumer Affairs and the banking ombudsman to query this and was told there was no ruling as such and that it was pretty much up to the banks to do as they choose.
I was advised however that the only way this situation would change would be to complain to my local member.
Donna
In NZ it's up to the purchaser to obtain and pay for the valuation and have this sent onto the finance house. eg a copy for bank and for purchaser.
I have noticed over here (Aust) that the process is different. I am in the process of organising finance for a property and asked if I could have a copy of the valuation from St George bank (via a broker), they were happy to provide this. I think it's important to see what the valuers expert opinion is on a given property at a given time in the market, and to make sure they are doing there job (the valuers that is). The valuation information can be pivotal in the process and is worth having a copy of, I see it as part of the research of a purchase almost.
I have noticed over here (Aust) that the process is different. I am in the process of organising finance for a property and asked if I could have a copy of the valuation from St George bank (via a broker), they were happy to provide this. I think it's important to see what the valuers expert opinion is on a given property at a given time in the market, and to make sure they are doing there job (the valuers that is). The valuation information can be pivotal in the process and is worth having a copy of, I see it as part of the research of a purchase almost.
The Bank's val's are for their use, not yours.
They just want to protect their LVR.
Bank's want a val for limited use, and usually for a limited price, subsequently they get "basic" research by he valuers that can be done quickly. Drive by val's, with a printout of sales which may be months old is not uncommon - but serves the banlks purpose.
GarryK
They just want to protect their LVR.
Bank's want a val for limited use, and usually for a limited price, subsequently they get "basic" research by he valuers that can be done quickly. Drive by val's, with a printout of sales which may be months old is not uncommon - but serves the banlks purpose.
GarryK
