Valuation

Discussion in 'The Buying/Selling Process' started by tempura, 24th Oct, 2014.

  1. tempura

    tempura Member

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    when I requested valuation from my bank, she asked "how much do you think you are going to purchase this property for?"

    in another way of paraphrasing the question, "how much do you think the property worth?"

    Why does the bank ask this question? Will my answer influence on how the value being calculated? I certainly doubt it will be, but I thought I ask :)
     
  2. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    Is this a desktop or full valuation?

    Sounds like it might be a desktop val based on a property you're keen on. If that's the case - they'll need to put in an "estimate" value for the property.

    Cheers

    Jamie
     
  3. tempura

    tempura Member

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    RP Data Valuation from The Bank (CommBank).
     
  4. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    Yep - they'll need to know an "estimate" value in order to run the report.

    Cheers

    Jamie
     
  5. Dbz_Vic

    Dbz_Vic Member

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    With RP data can't you just purchase a report from their website? i would assume it's pretty much the same thing.
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    They expect that you'll have some idea of what the property is worth, which a report generated using data sets may not. For example, the report doesn't know if you've renovated or extended since the property was last transacted.

    If the estimate comes within the boundaries of a statistical acceptable range, the CBA online valuation will use the estimate. If its outside of that range they may get a full valuation done to get more detailed information.

    It's not that different to the lender providing the purchase price to a valuer when you purchase a property. In theory the valuer should know what the market value of the property is. In practice, by purchasing the property for $X, you've defined the market value and the valuer is really just ensuring that the price you've paid is within a reasonable range.