Valuation Coming Back at Sale Price Two Months After Settlement

[Rhinsor]

Hey all,

So I got my broker to get a valuer out last week to value the property I purchased 2 months ago.

The bank did a desktop valuation, however some renovations were done before settlement. I only found out the bank did a desktop valuation last week.

What are the chances the valuation came back at the exact sale price?
Would the valuer of checked this?
Should I get a few more valuers out to try get a higher price then sale price?

I want to try get some funds out for my next property without going over 80% LVR?

The property is pretty unique in terms of size and looks so I'm not 100% sure how the valuer came to that figure.

 

[Corey Batt]

A desktop valuation is completed by a computer, not a person so it wouldn't have taken the renovations into consideration.

If there have been substantial improvements made to the property, request a *full* valuation, and be sure to have the broker note the improvements made since purchase.

 

[sanj]

Perth market has been pretty flat, have you done anything that would justify a higher reval?

 

[Jamie M]

Hiya

If a desktop was done last week then you should have the report by now - they're usually generated straight away.

Cheers

Jamie

 

[Rhinsor]

Woops didn't really write that right.

The bank did a desktop valuation in October before purchase. Settlement was November.

A valuer went out to the property last week and I got the valuation today from the broker at the same purchase price.

 

[Hodge]

Woops didn't really write that right.

The bank did a desktop valuation in October before purchase. Settlement was November.

A valuer went out to the property last week and I got the valuation today from the broker at the same purchase price.

Did you pay market value for the property? I'm in the same boat as you. I think when I revalue my property after the renovation is complete it will come back as purchase price. Mainly because I've only had it for a short time.

 

[Peter_Tersteeg]

This happens all the time. By purchasing the property, you've defined market value. In 2 months, it's difficult to demonstrate that the market has moved significantly, especially over the Christmas period.

 

[Hodge]

This happens all the time. By purchasing the property, you've defined market value. In 2 months, it's difficult to demonstrate that the market has moved significantly, especially over the Christmas period.

If the property has been renovated would this still be the case?

 

[Rhinsor]

This happens all the time. By purchasing the property, you've defined market value. In 2 months, it's difficult to demonstrate that the market has moved significantly, especially over the Christmas period.

Do you see any point in getting more valuations now or
should I wait a few months and get another valuation or
just refinance up to 85% and take on LMI?

I believe I purchased under value, the neighbour was shocked I got it for the price I did (Hopefully I can convince them to sell to me later on). The suburb is flat at the moment but 90% of the properties on the market are less then half the size of mine and selling for 20% less.

 

[Corey Batt]

If the property has been renovated would this still be the case?

If you do significant renovations (kitchen, bathroom, painting, flooring) you can certainly get a noticeable change in valuation, but the works need to be disclosed upfront to the valuer, preferably with a source to show the difference between before + after.

 

[Rhinsor]

If you do significant renovations (kitchen, bathroom, painting, flooring) you can certainly get a noticeable change in valuation, but the works need to be disclosed upfront to the valuer, preferably with a source to show the difference between before + after.

The previous owner spent about 7K installing new flooring (168SQM) and painted the 1st floor ceiling after the contract was signed, after the desktop valuation but before settlement.

I've installed new split system aircon, oven & cooktop, false ceiling to second storey (68SQM), painted first floor walls, stripped stairs of carpet and polished the timber steps, painted stairs and some other stuff.

None of this was mentioned to the valuer before they attended the property
Is it to late to do it now?

I also have dozens of photos of before and after and reciepts of things I did but not the previous owner.

 

[Redom]

The previous owner spent about 7K installing new flooring (168SQM) and painted the 1st floor ceiling after the contract was signed, after the desktop valuation but before settlement.

I've installed new split system aircon, oven & cooktop, false ceiling to second storey (68SQM), painted first floor walls, stripped stairs of carpet and polished the timber steps, painted stairs and some other stuff.

None of this was mentioned to the valuer before they attended the property
Is it to late to do it now?

I also have dozens of photos of before and after and reciepts of things I did but not the previous owner.

If your not in LMI territory, do a few vals from lenders you can borrow from. Its generally quite difficult to go back to a valuer and get them to change their opinion. Definitely highlight all the changes you made, generally renovations do result in an increase in value (unless the markets slowed, etc).

 

[Rolf Latham]

how much of an advance are you expecting for the renos and the BMV ?

ta
rolf

 

[albanga]

I believe I purchased under value, the neighbour was shocked I got it for the price I did.

If our neigbors were property valuers we would all have about an extra 200k in equity.

 

[DaveM]

If our neigbors were property valuers we would all have about an extra 200k in equity.

I just installed downlights so that gave me 50k equity in one day

 

[albanga]

I just installed downlights so that gave me 50k equity in one day

Haha my neigbors bless them were telling me how much value I added when I put up my new paling fence.

 

[Rolf Latham]

Haha my neigbors bless them were telling me how much value I added when I put up my new paling fence.

just think what a white picket fence would have done


ta
rolf

 

[WigansAFC]

A desktop valuation is completed by a computer, not a person so it wouldn't have taken the renovations into consideration.

If there have been substantial improvements made to the property, request a *full* valuation, and be sure to have the broker note the improvements made since purchase.

As a valuer (with CPV) i do Desktop valuations through Valex and these are done by a person. However, no information is provided apart from RpData Information, you are given the applicants mobile number and it is at the valuers discretion to call the contact person.

I generally do not like doing these jobs as they dont take into account the actual nature of the property in its current state and i know for a fact that some firms use valuer without local knowledge to complete them. on the upside they take 4-5 minutes to complete and are heavily qualified so you can get them back sometimes within 20-30 mins

My advise is get a full inspection and highlight the works completed AFTER settlement.