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Bank valuation was BS

Discussion in 'Property Finance' started by Darlinghurst Boy, 12th Jul, 2015.

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Recently had my poor valued by the Bank so i could use for equity .
    I had Real Estate agents all say over 500 to 525k
    Next door to me sold for 508k

    The Bank Valuer comes out and didnt tell me the value but the Bank rang me to say its not worth over 500k?
    I was a little disapointed they said about the 450k mark which i was shocked at because i know someone would pay over 500k for it.

    Im wondering if i got a second valuation from a different bank ??
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    What LVR are you looking at?

    If it's below 80% then valuer shop - get another upfront valuation ordered with another bank.

    A $50k discrepancy between valuer and REA isn't uncommon though.

    Cheers

    Jamie
     
  3. Beelzebub

    Beelzebub Well-Known Member

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    Yep, this is common. Banks will almost always value lower than RE agent. I recently had an agent come out to my property and they valued it at $390,000 - $410,000. Went valuer shopping and got one at $370,000 and two at $380,000.

    This isn't unexpected though. RE agents tell you what they think they can sell the property for tomorrow while valuers rely on data collected yesterday to inform their decision. Plus, they are inherently more conservative in their estimations.
     
  4. Allgood

    Allgood Well-Known Member

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    Last year we had our PPOR valued at 1.5 mil and just over 6 months later another valuation came in at 1.2 which was disappointing because the area is going gangbusters at the moment. Doesnt matter at teh moment but it p***ed me off!
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    if you dont have a fixed rate loan or havent paid LM you may be able to love to another lender that uses another valuer.

    ta
    rolf
     
  6. jpcashflow

    jpcashflow Well-Known Member Business Member

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    Which lender did you go through? I have seen values come in different amounts for the same property with three different lenders.

    Maybe best to request your broker to organise another valuation with another lender.
     
  7. Bran

    Bran Well-Known Member

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    I've had three different valuations all use the same valuer, with the same ****ty result.

    Grrrr!
     
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  8. mja

    mja Well-Known Member

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    I've never had a valuation I liked. Ever.
     
  9. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    I had one valuation, 2br unit in West Ryde, 550k. :)
    But that lender wouldn't lend to me, with the reasoning, i'm already at my limit with them....grrrr. (why couldn't they have checked my borrowing capacity first???)

    I then got another valuation with another (more generous) lender and it came back 470k. Doh!!!
     
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  10. Pistonbroke

    Pistonbroke Well-Known Member

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    Do you often have this reaction from agents?
     
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  11. Dazedmw

    Dazedmw Well-Known Member

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    How long ago was that? These days with all the banks having the same Standing Instructions for residential valuations in theory it should be easy to have a valuation (the first one in this case) assigned to a new bank if its less than three months old.
     
  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Best of luck with that theory

    Usually only works in reverse when for eg STG picks upa sad val from VMS commissioned by WBC

    Most lenders want their own order in my experience

    They may all have the same/similar standing orders but variations of 10 to 15 are not uncommon, with our office record being 28 %


    ta
    rolf
     
  13. poeter

    poeter Active Member

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    For the more generous lenders, do they tend have lower valuation than the less generous lenders?
     
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Valuation tends to be indepenent of lender and is more due to differencet valuers having diff views

    ta

    rolf
     
  15. RetireRich101

    RetireRich101 Well-Known Member

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    Can you convince the more generous lender to use the other valuation @550k?
    I previously had this experience:
    CBA was my current lender, valuation came back as say 520k
    NAB new lender, valuation came back as 480k
    NAB was ok to use the valuation done by CBA.
    I proceed refinance from CBA to NAB
     
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  16. Tekoz

    Tekoz Well-Known Member

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    So is it ok for us to have multiple IP valued by multiple different vendor ?
     
  17. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    If you're using a broker - they could order a couple of upfront valuations with different lenders. Sometimes the valuations are assigned to two different valuation firms - which often results in different values :)

    Cheers

    Jamie
     
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  18. Dazedmw

    Dazedmw Well-Known Member

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    That's the thing, their own order doesn't mean anything these days. Bank A sends an order to Valex who forward it to the Valuer with the industry wide Standing Instructions, Bank B sends an order to Valex who forward to the Valuer with the same Standing Instructions.

    As you say, the theory and practise might still be different, that will probably change over time as people don't like paying val fees they don't have to.

    That's not from variations in the instructions but generally variations in interpretation of sales.
     
  19. Dazedmw

    Dazedmw Well-Known Member

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    That's the thing, their own order doesn't mean anything these days. Bank A sends an order to Valex who forward it to the Valuer with the industry wide Standing Instructions, Bank B sends an order to Valex who forward to the Valuer with the same Standing Instructions.

    As you say, the theory and practise might still be different, that will probably change over time as people don't like paying val fees they do

    That's not from variations in the instructions but generally variations in interpretation of sales.
     
  20. euro73

    euro73 Well-Known Member Business Member

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    So find out the valuer you liked.. then have your broker go to firstmac, where you can choose the valuer ( if your broker is a premium broker) Problem solved. This is one of FM's best niche's - choice of preferred valuer