Valuers making their own market
- Thread starter Rolf Latham
- Start date
$240k is the value of improvements - good pick up there. Still the amount of 45sq double story monsters popping up on 512sqm blocks around me is incredible so someone must getting valuations through
The house 700m away has definitely settled as it is listed with the valuer general at that price as well, so someone has paid stamp duty.
Will have to wait and see where we go from here but there are enough mistakes on the valuation for grounds to contest in my opinion. Missing study, air condititioning, wrong roof type etc.
I think people unfairly criticise the valuers for new builds in the growth areas. Just because you buy land for $250,000, then put a 45 sq house on it for $300,000, doesn't mean that your house is now worth $550,000. It all depends on what sold in the area for houses which aren't new, which will be less than what you paid in hard costs. When I see people buy house+land packages in Point Cook etc and ask me for finance, I shudder because I know that the val is going to be a problem.
Fair enough I went in to this knowing about valuations in the area, we are not typical home buyers we can cover the valuation shortfall.
But if they are going to compare to like homes it should be one in the same suburb not two suburbs over it would like doing a Brighton valuation based on houses in Moorabbin.
Rolf I recall we had this very conversation in reverse about 6 months ago.
We all know the drill. Contest the valuation whilst quietly preparing an application to another lender.
haha spot on
So what happens in fast moving markets, either up or down, where there are predominantly off the plan sales?
Update on our valuation.
We contested and had the valuation bumped up $30k based on our comparatives and highlighting the errors in the valuation so in our case it was a worthwhile process.
Now we do not have to pay any LMI for the loan.
We contested and had the valuation bumped up $30k based on our comparatives and highlighting the errors in the valuation so in our case it was a worthwhile process.
Now we do not have to pay any LMI for the loan.
That's what they are trying to kill with the change in policy.
We had a val where the valuer used settled sales from the same area but they were all - bar one - mortgagee in possession & no reserve at auction in another unit complex. Couldnt even dispute it. Second val ordered spot on contract. When its $100k difference its a lot of coin.
So payment to two firms, same amount/contract and different outcomes.
Just ordered another val on another unit in the place, valuer has to drive in from 50km away, doesnt even know the area, any local agents or have knowledge of the area & whats selling, sold and it'll either be gold or another check valuer.
So making the market - indeed.
So payment to two firms, same amount/contract and different outcomes.
Just ordered another val on another unit in the place, valuer has to drive in from 50km away, doesnt even know the area, any local agents or have knowledge of the area & whats selling, sold and it'll either be gold or another check valuer.
So making the market - indeed.
What are your options about getting another valuation?
My valuation coming through on Friday is unlikely to meet sale price due to no comparable sales
My valuation coming through on Friday is unlikely to meet sale price due to no comparable sales
Then get another one...
Silly question but can I just ask? Isn't the valuer appointed by the bank?
Valuers are good at getting comparables - that is, they are not limited by time or location or a single methodology to determine value. Comparables don't need to be in the same suburb just comparable.
Just look at the most recent valuations for school halls rolled out under the BER in NSW. Valuations came back 40% below construction cost - is this a case of cost does not equal value or the works were grossly overpriced (due to timeframes, restrictive work practices, price gouging etc)?
So you bought a new property and are getting it valued now? You can use a different valuer with a different lender, or with some lenders you can actually pick the valuation firm you use. Up to you. If you've already applied and the bank ordered the val then you're stuck with that one for now.
I applied and its the bank ordered valuation.
So I'll wait and see what they come up with on Friday. I'm not overly optimistic from what he has said to my broker so far but I shall wait and see what the answer is.
Thanks
Maybe you just have buyers' jitters and it will all be fine
See how you go first. If valuation is a problem then maybe you should go with a lender that doesn't even do a valuation.Maybe you just have buyers' jitters and it will all be fine
Yes I do
Trying to solve all possible problems before they happen.Thanks - I'll step away from the edge and have a Bex
spreading the concentration risk away from HB hopefully ?
t
arolf
t
arolf
This could actually be the best you can hope for. Try and get finance where the valuer agrees with the estimate/sale price but doesnt provide acceptable comparables. A whole sea of pickles, for the valuer (will stick by his opinion), the credit assessor (who cant just call the valuer and tell them cause that would reflect on thier independantness) etc etc
At least with a short val you have the remedy of tipping in more cash.
Similar threads
