Valuers using the B word

Got to laugh though

the subject property was last traded at x 3.5 years ago

the valuation today is 1.15 x, so an approx 4 % pa growth...............

ta

rolf


PS, the typos and grammar came with the copy ....

MARKET SEGMENT CONDITIONS RISK COMMENT
Number 4 Risk Rating to Market Segment Conditions is considered warranted as currently, the market is largely driven by investors
and other factors. Prices in the immediate vicinity have undergone very steep rises in prices over the last 3-6 months due to the
derived demand generated by strong demand from investor market segment. It is uncertain as to how long this elevated demand
will be sustained for. The market is considered to be at a heighted risk of a bubble at the present time.
 
Valuers are honestly a different breed.

Recently one told me that a property that was sold at auction, which had 32 registered bidders and 12 bids was overpriced as wasn't to be used as a comparable due to the competition and demand. But at the same time made comments elsewhere that the market was slow. Ermmm??

Also had a valuer get it all wrong on valuation, took me 20 mins to get 10 comparables. They wouldnt budge on the original valuation. But then argee that would increase if provided landscaping quote. Quote provided for $6k valuation increased by $23k to where it should of been.


Seriously they are valuers, not economist. It's beyond me so of the things that come out of there mouth. Even when they are wrong and admit that they are wrong (off the record) they wont make changes at times.
 
Valuers are honestly a different breed.

Recently one told me that a property that was sold at auction, which had 32 registered bidders and 12 bids was overpriced as wasn't to be used as a comparable due to the competition and demand. But at the same time made comments elsewhere that the market was slow. Ermmm??

Also had a valuer get it all wrong on valuation, took me 20 mins to get 10 comparables. They wouldnt budge on the original valuation. But then argee that would increase if provided landscaping quote. Quote provided for $6k valuation increased by $23k to where it should of been.

Seriously they are valuers, not economist. It's beyond me so of the things that come out of there mouth. Even when they are wrong and admit that they are wrong (off the record) they wont make changes at times.

---
Is that the best way to go about getting better valuations, by quotes for work done? Showing comparison sales got me nowhere also. I've had a $50K valuation difference on one IP 18 months ago and had to try a different bank to get the right price. :rolleyes: Is one bank better to refinance with re: valuations than the others?
 
---
Is that the best way to go about getting better valuations, by quotes for work done? Showing comparison sales got me nowhere also. I've had a $50K valuation difference on one IP 18 months ago and had to try a different bank to get the right price. :rolleyes: Is one bank better to refinance with re: valuations than the others?

tis the luck of the draw............

one week and for one property, valuers B will have a better outcome. Next week its valuer A.

Its good for many brokers, especially those that have access to upfront vals.

With variances of 15 % not uncommon, and our record being 28 % it doesnt take long to work out that you dont rely on just one vals result when doing refinances................

ta
rolf
 
Less than 3% of val challenges are accepted.

One of my goals is to get on the right side of as many lenders as poss to get the "up front val" status. Some still don't offer the service?

Refis are typically 10% less than actual market value.

Sometimes you have a win with desktops and can go considerably over. Do the same desktop val a week later and its under :confused:

All part of the fun really!
 
Last edited:
After having some val issues this week, this is great reading.

Previously having land valued at contract price, the building is going ahead and the new val has come back $15k lower for the land and reduced for the build. That's after forwarded relevant details about previous vals, sales, builds, plans & finishes, etc. which got it revisted up to that (still unsatisfactory) level.

One story I've heard was a certain large bank bank persuading/suggesting/asking/instructing the valuer to a lower val. The application was 90+LVR and the bank wanted more equity in the deal.
This happened to the valuer twice. Once he couldn't do much to change the val down as he had a superior house in a street where he has valued other properties in the street recently at higher vals. They asked for certain recent supporting sales to be removed from the val. Bank became very aggressive about this but his professional reputation could have been damaged if he succumbed. I feel for some valuers new or less secure in there employment getting this pressure.

Cheers
 
marks;1129420 One story I've heard was a certain large bank bank persuading/suggesting/asking/instructing the valuer to a lower val. The application was 90+LVR and the bank wanted more equity in the deal. This happened to the valuer twice. Once he couldn't do much to change the val down as he had a superior house in a street where he has valued other properties in the street recently at higher vals. They asked for certain recent supporting sales to be removed from the val. Bank became very aggressive about this but his professional reputation could have been damaged if he succumbed. I feel for some valuers new or less secure in there employment getting this pressure. Cheers[/QUOTE said:
my experience is that this is largely"story" most panle valuers are independent. and after 13 years in this business I have seen any evidence of such things ( doesnt mean they dont exist)

I do know that lenders trying to convince a valuer to UP a val often has no result either......

ta
rolf
 
---
Is that the best way to go about getting better valuations, by quotes for work done? Showing comparison sales got me nowhere also. I've had a $50K valuation difference on one IP 18 months ago and had to try a different bank to get the right price. :rolleyes: Is one bank better to refinance with re: valuations than the others?

I guess it's a lot to do with the relationship, I have a very good relationship with the valuer dispute manager for that company (luckily they are do the most valuation for me in the area). As long as you have strong comparables I will usually have good success challenging, property needs to actually be comparable. If it's a unique property not going to have much chance.
 
I guess it's a lot to do with the relationship, I have a very good relationship with the valuer dispute manager for that company (luckily they are do the most valuation for me in the area). As long as you have strong comparables I will usually have good success challenging, property needs to actually be comparable. If it's a unique property not going to have much chance.

Great thread !...have a specific question - say something gets sold in your street if it's a house, or in your building if it's a unit (small complexes, say less than 8) for a significant % & $ value higher than your last valuation (even if it was 6-8 months prior).

As a general rule - should you be getting a valuation done quickly on your own if yours IS comparable to the sold property. Can the valuer still deny you a comparable valuation, or again as has been said previously, will it be how they feel on the day :D and one should make multiple valuation attempts? Logically a desktop val should at least come very close to the recent sale? Thanks.
 
Great thread !...have a specific question - say something gets sold in your street if it's a house, or in your building if it's a unit (small complexes, say less than 8) for a significant % & $ value higher than your last valuation (even if it was 6-8 months prior).

As a general rule - should you be getting a valuation done quickly on your own if yours IS comparable to the sold property. Can the valuer still deny you a comparable valuation, or again as has been said previously, will it be how they feel on the day :D and one should make multiple valuation attempts? Logically a desktop val should at least come very close to the recent sale? Thanks.

Im always a big fan of accessing equity when it's available, so if you're aware of a good sale that can use for a comparable, get a val take the equity. Because another sale could come through later at a lower amount. Valuer can do what ever they like if they follow the instructions provided by the banks. Usually comparable sales are a good tipping point to have a valuation disputed, on some occasions they can be that stubborn and just won't budge, that's when it's time to request a val from a different company ;) but comparables are really then be all and end all.
 
Back
Top