Valuations Spreads - new players to IP take note

[mikezen]

I've found that the worst valuations come from Macquarie thus far. Pretty much every single refinance pre-app val has been lousy.

Yes for one of mine I got 240 260 290, for a 280 property in Brissie , macs being the lowest ( I think if I remember rightly )

 

[Colin Rice]

Valex don't do the valuations aren't they more like a middle man

Middleman or intermediary would be accurate.

Broker or bank will request a val and Valex will assign the val request to a valuer on their list.

 

[jonmardell]

There is always a lot of options when it comes to valuations. Most banks are using VMS and Valex systems now so brokers often dont know which valuer has been issued the job until they make contact. Just because the same banks might be using vms or valex does not mean they have the same accredited valuers on their panel. For instance a smaller lender might only have one valuation company loaded onto vms for a particular post code where a large lender like CBA might have 5 or 6. At the end of the day it is always a good idea to get the valuation done upfront and keep going until you think the valuation is fair.

Begs the question - how viable is it to 'shop around' for vals?

 

[RetireRich101]

Very viable. Obviously if you are already with one lender and their val is crap, and you have already paid substantial LMI, then you are more limited...

I agree!!!

Everytime a valuation comes back not meeting expectations, my broker will ask me " do you want to try another bank?"

When I say "I want to dispute it".

He's response "sigh"

 

[Rolf Latham]

I agree!!!

Everytime a valuation comes back not meeting expectations, my broker will ask me " do you want to try another bank?"

When I say "I want to dispute it".

He's response "sigh"

because we know, even in the face of "irrefutable" evidence, the 230 k valuation will never make it to the 294 k.



ta

rolf

 

[RetireRich101]

can't you mortgage broker/third party bankers form a rebel and over thrown the valuer and become the king?

we've seem a lot of recommendation in this forum how to work your magic with the valuer, build rapport, be his best friend etc, but it doesn't seem to create much results especially in this booming market and valuer still live in a cave

can't the banks them self see it when you put 3 independent report side by side for the same property conduct on the day differs 20%?

maybe bank accept a broker's desktop valuation, and if client is not happy then conduct a full valuation?

 

[Brady]

I've had some success in challenging valuation, with solid comparables.

 

[Aaron_C]

Valuers are human beings like the rest of us. I just had one for a client where one valuation (Macquarie again) came at $500k. CBA (full val) came at $585k. It's just an opinion - and for people to change it they would look like idiots in front of their boss - so they won't.

 

[RetireRich101]

..... It's just an opinion - and for people to change it they would look like idiots in front of their boss - so they won't.

This comments nails it, especially you guys see it on daily basis. It's the ego proven wrong thing.

If I knew a mate who is a valuer(which I don't) , I am certain he can write 10-20% above what he would write for his regular client, and still wont get him in trouble.

 

[ZachAnSel]

Valuers are human beings like the rest of us. I just had one for a client where one valuation (Macquarie again) came at $500k. CBA (full val) came at $585k. It's just an opinion - and for people to change it they would look like idiots in front of their boss - so they won't.

So in this case, any niche reason why customer want Mac over CBA?
Because we know some lender require credit check before ordering valuation. That's another issue

 

[Aaron_C]

Several reasons - more flexible cash out, and Macquarie have a frequent flyer loan that clients want too.