Best time for valuation (longer settlement)

Discussion in 'Loans & Mortgage Brokers' started by Basix_, 23rd Apr, 2021.

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  1. Basix_

    Basix_ Member

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    Hi guys,

    We bought a house in Southeast sydney and the valuation comes 100k short of purchase price.
    We wanted to try different valuers in hope of getting better valuation to bridge the gap.

    We’ve ordered a second valuation within a week, but pretty concerned it’ll come back around the same.

    We have 2.5 months until settlement.
    Does it make sense to try for another valuation in a month’s time considering the rising market, or is 1.5 months too tight of a window?

    does most valuator uses the same data (eg. Core logic?)
    Trying to assess if it’s even worth getting multiple valuations.
     
  2. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Doing another valuation down the track could work if there's alot of settled comparable sales.

    Yes, all valuers use the same data.

    $100k Is a big variance from purchase price, did you do some comparable sales before your purchase?
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    We have been having to go in this direction a bit, more so in the 2 to 3 mill segment because the volume of sales until very recently had been loan with escalating prices and bugger all comps.

    If there are few comps to support your case, then,I suggest its worth it to wait a while.

    if there are some decent comps, then its likely the valuer was having a bad day.

    Had an 1126 k auction purchase come back at 1000 k this week. Rare event but does happen

    ta
    rolf
     
  4. Basix_

    Basix_ Member

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    We did and thought it was high, but there was a couple of offers with same price for the property. The sellers rejected them due to the terms.

    Does that mean if core logic said the high will be X, valuators are unlikely to value it higher than X?
     
  5. Basix_

    Basix_ Member

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    Does the sale need to be settled? Eg. If there’s a auction a few days ago, would it count?
     
  6. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    It's based on comparable sales, not what RP Data spits out.
     
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  7. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    I would assume yes, but im not a valuer so I can't comment on this too much
     
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  8. Lindsay_W

    Lindsay_W Well-Known Member

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    Settled within the last 6 months generally required for it to be used as comparable sale.
    Valuers don't use corelogic to form a value, they use comparable sales and sometimes their own personal take on the property/area/market direction, I've seen valuations come in with $100K differences before.
    1.5 Months between valuations is not long enough if you're using the same lender, they will say they already have a valuation on file which is typically valid for 3 months (some 6) unless the valuation type has changed, eg from desktop to a short form
     
  9. Sunny347

    Sunny347 Member

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    Thank you All for your valuable feedback.

    I am working with a broker now who is trying with Westpac and Bankwest without even applciation so it doesn't hit my credit file once again.

    An Empty block of land of 500Sq meter with frontage of 16 was sold at 1.25 Million 50 meters from my home. My Land size is 553Sq Meter with 18.9 frontage (opportunity to subdivide) and valaution with house came as 1 Million. Doesn't make any sense to me. Many other recent sales of 350-400SQ lands only were all sold between 1.1 to 1.18 Million at least 5 that i know off.

    I have cut down all my credit cards and reduce the limit to 5K and Car loan, i will settle soon. Hopefully, Westpac or Bankwest will do the magic.

    My last 2 years tax return itself have taxable income of 254K, I am sure i should be able to get 1.1-1.2 Million loan based on that.
     

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