Valuers making their own market

[westminster]

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.

Aaron's sane words helped and surprisingly it was a storm in a tea cup. We (REAs, myself and broker) were all prepared for the worst and today the Valuer has sent the valuation in and agreed with sale price. The non comparables were sorted by providing comparables with houses on and deducting the price/value of the house/improvements.

It's gone off to Mortgage Insurers for next stage of approvals.

As per usual - thanks for your wise words of wisdom boys.

 

[rawna]

Hi Rolf, and others
I have questions in regards to valuation :
Example in March 2012 - I got valuation $500k, Loan $300k, setup LOC $100k
Then in Dec 2012 - got valuation $450K, Loan $300k.
In this case will Bank ask $50k back ?

thanks,
rawna

 

[Aaron_C]

Hi Rolf, and others
I have questions in regards to valuation :
Example in March 2012 - I got valuation $500k, Loan $300k, setup LOC $100k
Then in Dec 2012 - got valuation $450K, Loan $300k.
In this case will Bank ask $50k back ?

thanks,
rawna

Did you order the val as part of an application or did you do it upfront prior? If former, then they may ask you to put money in (or pay LMI), or if the latter it is no skin off your nose.

 

[rawna]

Nahh.. just have this question because on March 2012 my broker send me valuation. I believe free valuation from the banks that try to sell refinance product.

We didn't proceed to the next level because wife takes maturnity leave on July 2012.

I'm just day dreaming if we refinance last time, and take LOC $100K out. Then out of nowhere on Dec 2012 the valuation drop and bank come back to me and raise this issue.. is that even possible?

 

[Rolf Latham]

I have an update on the sucky val

valuer has stuck her head in the sand ............I could not possibly be wrong, the auction produced an abnormal result and I cant find any comps that support the $ value.

Well, as is almost always the case, another valuer from another firm with another lender could find some comps.........fancy that

ta
rolf

 

[Aaron_C]

valuer has stuck her head in the sand ............I could not possibly be wrong, the auction produced an abnormal result and I cant find any comps that support the $ value.

That's because reviewing the valuation is a no-win for her. If she amends it substantially, she's proven to be incompetent. If she doesn't, then the presumption is the customer is an idiot

 

[Rolf Latham]

That's because reviewing the valuation is a no-win for her. If she amends it substantially, she's proven to be incompetent. If she doesn't, then the presumption is the customer is an idiot

Thats quite reasonable for a private treaty purchase.

for an average, garden variety auction, the presumption goes further and is all encompassing ...........the market is an idiot..........which is why my thread title was headed that way.

Not yielding on something where one has obviously made an error of judgement suggests poor self confidence, something no valuer principal would want im sure

ta

rolf

 

[DaveM]

In by the skin of my teeth getting unconditional on a deal after 2 extensions... all due to a valuer who could not find more than 1 comparable on a suburb with 5000+ residences and 500+ transactions in the past 12 months!

Not sure what drugs he is on.. but I want some.,..

 

[THR]

I recently bought property at auction for ~ $750k. The property was hotly contested (five bidders).

Bank valuer has come back with a value of $710k; coincidentally the same figure that RP data provides, despite it having incorrect floor plan details, etc.

So off I go to another lender!

 

[westminster]

In by the skin of my teeth getting unconditional on a deal after 2 extensions... all due to a valuer who could not find more than 1 comparable on a suburb with 5000+ residences and 500+ transactions in the past 12 months!

Not sure what drugs he is on.. but I want some.,..

Phew! My Valuer came back ok too

 

[Rolf Latham]

I recently bought property at auction for ~ $750k. The property was hotly contested (five bidders).

Bank valuer has come back with a value of $710k; coincidentally the same figure that RP data provides, despite it having incorrect floor plan details, etc.

So off I go to another lender!

Dumbo valuer !

ta
rolf

 

[THR]

Yep - and they don't like having their valuations questioned

It's all a bit ridiculous. I can easily afford the loan, the property was highly sought after, and there is no way even in a fire sale it would go for that amount.

Just highly conservative, risk averse, wastes of space.

 

[Rolf Latham]

Just highly conservative, risk averse, wastes of space.

worse........... not competent and ego centric.

Unless there are very unusual circumstances and it was a normal auction, then it must be assumed that a fire sale auction would produce the same result, since the mortgagee is required to obtain the best poss price.

ta
rolf

 

[luckyone]

Just wondering as we are about to get our place revalued to hopefully draw some more equity out of it, is it worth providing the valuer with a list of comparables? Or is that considered rude?

 

[THR]

Based on my experience the more information you provide them, the better. Otherwise they'll commit their negligible amount of time to your valuation.

 

[luckyone]

Thanks, I'll give it a go then. They've usually been pretty low in the past and our bank only has one valuer in our area, so it's definitely worth the try.