To Value or not to Value??



From: Nicole Jennings

HI all;
Need a bit of advice from all you great people who have been posting on this forum.My husband and I are looking at purchasing our next IP in Brisbane.We live at present in Adelaide and have a property already in Wellington Point, a brand new 4bed 2 bath house which is doing well, but has been valued $4o,000 below actual selling price. We have had several appraisals done by local agents whom have given us a much more realistic value, compared to our ANZ Banks valuation. Any way, the question I have is that we have found a property: 2bed 5yr old town house in clay field and are wondering is it better for us to get our own valuation prior to making an offer on the property, because our finance is dependent on the Clay field property valuing up to the banks valuation. Instead of wasting everyone's time, would it be better for me to get a valuation done prior to purchase, then start the price bartering??.
As we all know at present SE QLD valuers are being really difficult at the moment and really sound like they run by their own set of rules, which really effects us as investor's as the valuation even if it is way off the "real market value" inabilises us to gain further finance.

All views would be greatly appreciated, also does any one know how to obtain past sale prices of areas in Brisbane????

Nic xxx
Last edited by a moderator:
Reply: 1
From: Lorne Mckinnon

Hello Nicole,

Don't banks just peewee you off!!

Banks have a panel of valuers that they use for all their property valuations. Whats more they ask these valuers to value the properties at mortgage value not market value. This, as you have found out is somewhat less than market value.
Getting a prior valuation and presenting it to the bank is a good idea. But you must first find out who the banks 'Panel Valuers' are, as the bank will not except any other valuation.
When you find out who the banks Panel Valuers are, instruct them to give you a 'Fair Open Market Value' of the property.
This valuation will be more realistic. The banks may not like it when you present it to them but they will except it.

Remember, the valuers must be on the banks panel of valuers.

Note: if you ever have trouble with the banks, tell them you are changing banks and want a payout figure. They will do almost anything to keep your business if you have a couple of existing IP loans with them.

Hope this helps.

Last edited by a moderator: