Valuer General valuations

[luce.rocks]

Are the VG's valuations ever more than market value? I know often they come in less, but do they ever come in higher? And when a bank is doing a valuation, if there aren't very many comparable sales, will they look at the VG valuation? And if so, how closely does their valuation usually come to the VG valuation? Sorry for the 20 questions


ETA: asking about vacant land, not houses

 

[Peter_Tersteeg]

I've seen plenty of valuations where the result was less than the figure used on a rates notice. In many of these cases, the owner was able to use the valuation to argue a reduction in council rates.

 

[luce.rocks]

I've seen plenty of valuations where the result was less than the figure used on a rates notice. In many of these cases, the owner was able to use the valuation to argue a reduction in council rates.

Pretty sucky consolation prize. I'd rather have a higher bank valuation than lower rates any day!

 

[RetireRich101]

we had an experience with VG, but not a VG for your land value determination every few year thing.

my parents farm were acquired by the Government. We rejected the offer, hence VG comes in to value their land and make determination. We chose to fight VG's determination in Land and Environmental Court. Long story story short, the court went for 10 days, and a 3month for judge determination, which was similar figure to VG's determination.

 

[luce.rocks]

we had an experience with VG, but not a VG for your land value determination every few year thing.

my parents farm were acquired by the Government. We rejected the offer, hence VG comes in to value their land and make determination. We chose to fight VG's determination in Land and Environmental Court. Long story story short, the court went for 10 days, and a 3month for judge determination, which was similar figure to VG's determination.

Sounds stressful

 

[RetireRich101]

so I would think Valuers under VG panel suppose to be more independent and are ready to present their argument in court, as compared to a bank valuer panel that is so much influenced by their Bank metrics. Also a valuation done for a bank as a client hardly ever get a chance to be challenged in court.
But VG's determination are mostly conservative I must admit.

Here is an article from a valuer perspective:

"10 valuation myths you probably think are true"
http://www.yourinvestmentpropertyma...myths-you-probably-think-are-true-143628.aspx

 

[Scott No Mates]

Retirerich, a valuation by compulsory acquisition by government is determined in accordance with either the State or Federal acquisition act (as relevant to which department is undertaking the acquisition). The Act differs greatly between state and federal jurisdictions. Often, a negotiated settlement is a preferable outcome. Latest update from the lawyers is that the losing party can now be liable for the costs of both parties.

Luce, the VG uses bulk valuation methodologies to determine the Land Value only. It does not take into account improvements to the land (eg: removal of trees, pasture improvement, irrigation, trenches etc - if your on a farm, buildings, driveways, landscaping etc for houses or industrial sites etc). In NSW VG's value is based on the 3 year rolling average so if prices jump 30-40% in one year, the effect will be averaged out over 3 years.

 

[luce.rocks]

Luce, the VG uses bulk valuation methodologies to determine the Land Value only. It does not take into account improvements to the land (eg: removal of trees, pasture improvement, irrigation, trenches etc - if your on a farm, buildings, driveways, landscaping etc for houses or industrial sites etc). In NSW VG's value is based on the 3 year rolling average so if prices jump 30-40% in one year, the effect will be averaged out over 3 years.

Thanks for the info I'm happy enough with the VG's value, I'm just keeping my fingers crossed the banks agree when we ask for finance!