Bank valuation report

Discussion in 'Loans & Mortgage Brokers' started by Otie, 19th Oct, 2017.

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  1. Otie

    Otie Well-Known Member

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    Just had a property valued today. Bank said came back at contract price.
    On another property the bank gave me a copy upon request.
    On another purchase (same bank) broker said he couldn’t access the report and he couldnt provide it to me.
    This time I’m yet to ask for a copy

    It got me thinking- without seeing it how do I know valuation hasn’t come in higher and bank not letting on to keep LVR higher so I can’t access a better rate?
     
  2. Ghoti

    Ghoti Well-Known Member

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    Never had a bank/lender decline advising me of the number the val came back at - and there's been a few since my FHB appkication with State Bank of Victoria!.

    Though in all that time only had two banks/lenders that shared the val report with me.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    A higher val than purchase contract is pixie dust unlessits a favourable sale from relo or the like

    Just sayin after a couple of thousand vals...........

    ta
    rolf
     
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  4. Redom

    Redom Mortgage Broker Business Plus Member

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    If it helps you, your val almost certainly didn’t come in higher if it’s just a standard purchase. Valuers just use the contract price, even if they think you got a good deal.

    Banks usually also don’t lie about purchase vals to customers to keep rates higher. Some banks don’t provide them, some do. Usually smaller ones don’t show them, as they control the Val process (outside broker).
     
  5. Otie

    Otie Well-Known Member

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    The only reason I ask, is if they don’t ever show us how would we know?
    I did expect it to come back at contract price anyway, but it just got me thinking.

    Also, if valuers are there to value based on comparables etc, why do they go by contract price? Doesn’t that sort of defeat the purpose of bothering to get a valuation done?

    I do get that obviously contract price sort of covers both the buyer and the valuer
     
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  6. tobe

    tobe Well-Known Member

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    I had a purchase val come in higher than contract this week. $780 on a $728 purchase. Then the assessor formally approved 98% of the val. I had to go back and tell her that wasn't her banks policy.
    She gave me 98% of purchase price but the lmi was still calculated on the higher val..... significant saving for the client.
    Bdm adamant they can't share the val report.

    I can't think of another example, in 15 years broking.

    It was purchased through a buyers advocate.
     
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  7. Otie

    Otie Well-Known Member

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    Lol I’ll try to see a copy, I wouldn’t mind 50k instant equity for nothing! Don’t like my chances though haha
     
  8. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Was it off the plan or contract more than 6 months old??
     
  9. tobe

    tobe Well-Known Member

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    Nope. Normal suburban house. Advocate got it before it was listed publicly.
     
  10. Corey Batt

    Corey Batt Well-Known Member

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    Banks aren't interested in falsifying loan information to try save a couple bucks - they aren't two bit operations.

    Some lenders are happy to hand them out, others only on request and some refuse outright - just comes down to their processes.

    As others have noted - at the point of purchase the valuers will revert to the contract price at maximum in all but the rarest of exceptions for an open market transaction. Give it 3-6 months and then valuers have more free reign in looking at the value without having to consider the recent purchase price as they need to compare it against recent sales.
     
  11. diagnostic

    diagnostic Well-Known Member

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    Any recommendations on best timing to request a val? Straight after a quick reno or can you request them every 6-12 months?
     
  12. Corey Batt

    Corey Batt Well-Known Member

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    As I noted above - ideally 6 months, if you're really itching to 3 months but you may not get the best possible val.

    Valuer guidelines for comparing against other properties is to look at sales within the last three months, and if they cannot find anything matching perfectly they extend this to 6 months. (so its very common for comparables to be up to 6 months).

    Due to this, the previous sale price will generally hang around on valuation reports for the first 6 months. Valuers can and will acknowledge the renovations completed - but they will still downgrade the figures as they don't particularly want to be risking their employment by saying a 20k reno adds 100k of value in 3 weeks.

    Patience is a virtue.
     
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  13. Dmarkw

    Dmarkw Well-Known Member

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    Cause the contract price is the best comparable, and if purchased on the open market, market value..
     
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  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    xcept when

    a valuer wants to make their view stronger than the market

    We have valued this property below the public open auction sale price because the agent said the turn out was quite strong...............

    I have never had a valuer come back and say, well,there was only one bidder at the auction so the sold value needs to be higher ...............


    ta
    rolf
     
  15. L3ha7

    L3ha7 Well-Known Member

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    I just did valuation for our propertise with CBA (loan is with cba) and they provided 2 things:-

    1. CBA Automated Valuation Amount (1page)- shows few conditions etc.
    2.Property Profile (10 pages)-talks about the price range, history of property and sales in the area etc

    There is a mistake in the built year in 1 if the property report :it shows built year 2000 but as per the documents it is 2005. Is it worth changing it with bank and can it increase the value if the property?

    The main question I want to ask is if I want to calculate our equity/80% LVR fir investment purposes- Should I use the amount shown in 1 page document CBA Automated Valuation Amount or the property profile estimate??
     
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    The AVM report

    ta
    rolf
     
  17. L3ha7

    L3ha7 Well-Known Member

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  18. dabbler

    dabbler Well-Known Member

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    I have had lenders where I paid for vals who will not share the val or specifics. I find it very irritating when I paid for it & I accept they make the rules, so not sure why some withhold like that.

    Now, on the other matter, if you buy 50% off, it makes no diff, lending will be at contract price or less, you will never borrow more than contract from any lender I know, of course you can re apply pay fees etc again and re val straight away, but yeah, that is the way it is.
     
  19. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Technically val reports should not be sent to the applicant. All banks advice of this.
     
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  20. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    I doubt it very much as they would be in deep **** if they got caught out.