Valex and disputes regarding your bank valuation

[RetireRich101]

It appears on 2 separate occasion 6months part, Valex has sent the same valuer company (in Caringbah) to valued my property in western sydney.

On both 2 valuations I had to open a dispute with Valex.
While the valuation price increased due to I supply them with approval documentation, otherwise they will valued it WITHOUT either the extension because there information from Council is not approved. I had to conference the Valuer with Council to get the correct info.

To cut the story short, the valuer in latest dispute:
"In regards to the additional supplied information, an increase in value is not substantiated and Valuation figure remains as previous"

I did an extensive research and made further submissions, but can't seem to go anywhere.

One concern I have for Broker/Banker here:
(1) The valuer accepted a dual occupancy status for attached dwelling and accept achieving a rental of xx.
However, the Valuer has used comparison sales that are dual occupancy properties that NOT council approved.
(2) In addition, the valuer has taken full rental achieved for those properties, yet don't take full amount of my actual rental received

While in my submission for the dispute I highlighted and question the validity of the valuation methodology used by the Valuer, I ended up closing the dispute as I had to move on.

My Broker shares his pain that he deals with everyday, and ensure there is nothing I can do about as Bank can not overrule the valuer, not Valex can take part in the exercise.

As said by other post, if I change bank, Valex may/will instruct the same Valuer for my region.

Perhaps other people and Broker here can share their experience with disputes with Valex/Valuer, and any creative suggestions or next level escalation, apart from suggesting moving banks.

 

[HLE]

While it is possible to challenge a valuation, most of the time it is better just to go to another bank that will use a different valuer. One of the banks told me that the success rate for challenging a valuation was approx 3%.

Not all lenders use valex, and sometimes they use valex however a different valuer from a different company goes out there.

If you do want to challenge it then try doing it direct with the manager at the valuation company that valex instructed. They tend to care about problems like this and you are more likely to get a good outcome.

 

[Brady]

While it is possible to challenge a valuation, most of the time it is better just to go to another bank that will use a different valuer. One of the banks told me that the success rate for challenging a valuation was approx 3%.

Not all lenders use valex, and sometimes they use valex however a different valuer from a different company goes out there.

If you do want to challenge it then try doing it direct with the manager at the valuation company that valex instructed. They tend to care about problems like this and you are more likely to get a good outcome.

Agree with HLE I will speak directly with the valuer, going through valex doesn't seem to get the results too often, not that speaking direct with the valuer does but it's a quicker no that way can move on.

Sources have told me that CBA/valex is trialing a new dispute process that will mean brokers/bankers speak direct with the the valuer... As mentioned I'm already doing this as to me it made sense.

 

[Peter_Tersteeg]

With a little social engineering, it is somewhat possible to get ValEx to use a different valuer. Not foolproof, but it can be done. Sometimes it's as simple as your broker ringing up and asking.

 

[RetireRich101]

With a little social engineering, it is somewhat possible to get ValEx to use a different valuer. Not foolproof, but it can be done. Sometimes it's as simple as your broker ringing up and asking.

Is this even possible? My broker tells me that its the discretion of the Valex to use which valuer in their system, and the bank has no influence what so ever in the process.

I have demonstrated evidence the Valuer used properties that are in a busy road, close to proximity of the train tracks and properties of dual occupancy that are not council approved. I have made inquiries to council to confirm this, while the Valuer used evidence/description on Real Estate listings. The subject property is in good location and is not exposed to any of the above defects

Via the dispute I asked the Valuer how did she determine the superior/inferior/comparable of its location, land size and improvement, and if the valuation rationale/methodology pass the Spencer Test, and if any adjustment were made for the defects when comparing the subject property.

It seems the Valuer is the GOD here. The bank, the investor, the broker are at its mercy here.

 

[Aaron_C]

The way to get around the valex system is to order the valuation, then get it cancelled if the same firm comes up.