Valuation - Finance

Discussion in 'Property Finance' started by MTR, 9th Aug, 2013.

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  1. MTR

    MTR Bling Bling

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    Hi All
    Going to get my primary residence refinanced, in the past val (last 12 month period) has come under.

    Any suggestions to get the best result??

    If I provide my own comparable sales will they consider/look at this, any point??

    Thanks
    MTR
     
  2. Rolf Latham

    Rolf Latham Member

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    if you arent bonded to the same lender, get your broker to try another upfront val.

    If both are significantly low there is a good chance the valuer is closer to the market than your perception,

    Mostly, a 3rd val produces a similar result BUT, it does matter if your place isnt "cookie cutter" comparable

    t
    arolf
     
  3. Shahin_Afarin

    Shahin_Afarin Finance Broker

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    Has there been any significant renovations to the property? Are there any recent sales and comparable sales that have done through but not yet settled?
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    I hate to say it, but low valuations for refinance/top up purposes are a common problem right now. In mortgage industry circles recently there was even a round of them vs us between brokers and valuers.

    You can appeal the valuation by getting comparable sales (not listings), but my experience is that success in doing this is limited. The only other option is to look to a different lender who will hopefully use a different valuer. Get a broker to do the valuation upfront so you don't damage your credit file with excessive enquirers.
     
  5. Rolf Latham

    Rolf Latham Member

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    Prodding one ofmy BDMs from lender that has a "dispute process" that limited means 1 in 100.

    One of the bigger challenges not yet caught on by many bankers and brokers is that "not yet settled" sales can no longer be used as comps under new standing valuer instructions.Having said that, in a fast moving market not yet settleds can provide impetus for a better val by providing guidance if the valuer isnt familiar with the local market

    ta
    rolf
     
  6. MelbGal

    MelbGal Member

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    I had a broker who called the valuer and was able to get the value up during a reval for finance, but I ended up going with Bank 1.

    My example was bank 1 value $1.7m (drive by val); bank 2 value $1.175m (internal val). After broker disputed, they upped the val to $1.25m which is still lower than expected but also this is an unusually larger property for the area and so not many comparable sales.
     
  7. RightValue

    RightValue Member

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    Recently I moved on two vals in a week. The first time in over 2 years and the 5th and 6th time since 2007.


    Actually things have changed recently as a result of residential valuers being very upset at not being able to use recent but unsettled sales.

    Valex are accepting use of unsettled sales in the sales evidence (like ws the case before the new valuation standard adpoted late 2012) but the valuer must include at least 3 settled sales in the report. This is fine as the settled sales can have the comments attached such as, "there has been increased market movement since sale date".
     
  8. redwing

    redwing Progress Not Perfection

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    We recently had top ups done in QLD & NSW, no desktops, they wanted to inspect on both

    Vals came in as nominated by ourselves and are approved, we pushed it a bit so glad with the result
     
  9. Rolf Latham

    Rolf Latham Member

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    The challenge that Im finding is that some valuers are not doing that ............... and in a market thats quite warm as in much of Sydney and some parts of Brissie and Perth, hanging your hat on "settled sales only" can make your val worthless.

    ta
    rolf
     
  10. MTR

    MTR Bling Bling

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    Thanks everyone for the suggestions.
     
  11. mflying

    mflying Property Developer

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    +1

    i know it is debatable, but i am seeing valuation is falling short by $10-$50K in rapid rising market.

    i bought a property in girrawheen,WA and had it valued by 2 banks, Banks 1 valuation was short by $10k and Bank2 valuation was short by $35K of purchase price.

    We gave valuer a proof of property sold few door away for 15K higher of what we paid + 3 other comparable sales, but he was adamant not to change valuation!

    I think we will see lot of this in Rising market of Western Sydney, Some part of Brisbane and Melbourne!

    so for newbies and ppl on tight budget should consider to include "Subject to finance: sufficient to Complete" or have enough cash to fund shortfall!
     
  12. MTR

    MTR Bling Bling

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    I had my Doonside property valued, came in at $330,000, I could sell it tomorrow at $400,000. What do you buy in Doonside for $330,000, this is a house on decent size dirt with a granny flat at rear.