Valuer wants more money if val exceeds $1.5mil

[mini2]

I'm finding this kinda weird...I'm getting a val ordered, the bank came back and said oh if they valued the property >$1.5m, they will want almost $800 for the val compared to stock standard $220. Am I missing something here?

Thanks

 

[tobe]

I cant tell you why, but I can confirm 'luxury' properties are more expensive to val. Not all banks pass this cost onto the client

 

[Peter_Tersteeg]

Unfortunately there's not a lot you can do about it. Valuers do charge more for higher value properties and commercial properties, this does cause pain and delays from time to time.

Unless it's a commercial deal, it's unusual for the lender to pass this cost onto the borrower.

 

[mini2]

Thanks fellas, at least you've confirmed it's a common practice rather than my bank (well it's a credit union...) trying to pull wool over my eyes. Or trying to stooge me.

 

[pinkboy]

Thanks fellas, at least you've confirmed it's a common practice rather than my bank (well it's a credit union...) trying to pull wool over my eyes. Or trying to stooge me.

Why would you think anything else? Banks are the upmost citizens in terms of honesty, and integrity towards their clients...............


pinkboy

 

[Shahin_Afarin]

No its not standard bank practice but its standard for a credit union and smaller institutions. $1.5mil is actually quite low and normal for the Sydney market. Most other banks would not charge you this fee.

BTW - ask the credit union it get more quotes because $800 is a rip off. I just did a commercial loan for a block of 6 units and that cost about $800.

 

[mini2]

Why would you think anything else? Banks are the upmost citizens in terms of honesty, and integrity towards their clients...............

Oh stop it, you've just broke my sarcasm-o-meter!

BTW - ask the credit union it get more quotes because $800 is a rip off. I just did a commercial loan for a block of 6 units and that cost about $800.

Yep hitting them up for more quotes. They've only got a panel of 2 valuers...

 

[Rolf Latham]

Capacity to pay

Willingness doesnt come into it

Also, id guess the PI issues on a property that value are MUCH larger

ta
rolf

 

[Corey Batt]

Capacity to pay
Also, id guess the PI issues on a property that value are MUCH larger

I'd hazard a guess that a lot of it comes down to this. It's certainly a fickle market at this point, where price ranges can swing 250k either way without any real market movement.

 

[Evachange]

I have had some lenders want to charge for valuing properties over $1m.

Suncorp advised they would not charge the client and then after approving the loan wanted to charge $1,000! Which the client would not pay and so there ended the deal.

On the other hand other situations with different lenders the cost was covered.

Cheers,

 

[marg4000]

I'm finding this kinda weird...I'm getting a val ordered, the bank came back and said oh if they valued the property >$1.5m, they will want almost $800 for the val compared to stock standard $220. Am I missing something here?

Thanks

So many charges are based on $$$ value - RE agents' commission (both sales and property management), financial management fees to name only two more that are not necessarily reflecting more work involved.
Marg

 

[Mick C]

Most lenders these days only start charging more when it's over $2-$3m for resi...as 1.5M for a house anyway is common in sydney.

But yes luxury property = higher cost - i suspect it's because the valuer has to take on a higher responsibility + higher insurance prem as a business??

 

[Dazedmw]

It's just more risk for the Valuer. Just on a sum of money basis it's much easier to get sued on a $1.5million valuation than a $300,000 one.