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Broker requesting payment of valuation

Discussion in 'Property Finance' started by b00gie, 8th Feb, 2016.

  1. b00gie

    b00gie Member

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    Hey peeps

    I asked a broker to get me an upfront valuation of a property. It was requested through CBA panel of valuers via Valex.

    Reading this forum, my understanding was valuations were requested free esp from the big 4 like CBA. The broker did not mention anything about valuation fees if I don't go with them. I didn't sign any paperwork either nor was there terms and conditions about valuation fees.

    In the end, got a better rate from a bank specialist. Didn't go with the broker, and now they are trying to guilt trip me and charge me for an upfront valuation done for CBA.

    Are they pulling me leg?

    Thanks :)
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Some brokers do have to pay if they don't do much volume with CBA. How much are they charging? Should be $50 max. But regardless, if you didn't sign anything you definitely don't have to pay.
     
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  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    The CBA charges brokers $50 for valuations that don't result in an application. The other majors don't charge for them. I suppose the intention is to stop brokers from valuation shopping.

    One of the many little things the CBA does that just gives me a sour feeling about them.
     
  4. b00gie

    b00gie Member

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    the broker is asking that i pay $330 for the upfront valuation... sent me an invoice too

    so the nice broker now turned nasty is pulling my leg

    thanks for your responses :)
     
  5. b00gie

    b00gie Member

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    also the broker sounds like they do big volumes with CBA, always suggesting CBA to me over other banks

    but good to know it's about $50 for valuations that don't result in an application
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Wow, that's low. Some lenders do charge, especially smaller lenders but your broker needs to make known there is a charge before hand.
     
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  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    As an aside, was your brief to the broker "best rate " ?

    ta

    rolf
     
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  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    WBC don't offer them at all unless you write 'x'. Consequently they get close to zero of my work - it's a chicken and egg thing - I need upfront vals to write volume, they need volume to give me vals. :rolleyes:
     
  9. b00gie

    b00gie Member

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    Yup, asked for best rate, I/O, offset. Didn't mind paying annual fee.
     
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  10. Redom

    Redom Mortgage Broker Business Member

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    Hmm not sure where they're getting the $330 figure from, thats not even the cost CBA charges brokers for vals. Seems poor to try and pass that on. Perhaps its a fee for service broker that charges for time spent (although vals take like 5 minutes to organise).
     
  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Prob trying to make a little profit on top!
     
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  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    cool

    As a matter of interest, what lender was the most attractive ?

    ta
    rolf
     
  13. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    $330 for a Cba upfront! Ask them to show you the price they were charged. That's crazy. They couldn't justify processing fees either - it takes 2 minutes.
     
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  14. albanga

    albanga Well-Known Member

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    They could be trying to charge you for time.
    Did you sign anything at all? Not specifically a valuation approval, more so a product disclosure?
    Some brokers will charge you for this. Obviously they took the time to meet with you, complete a fact find, put together some options.etc

    Most brokers will not charge you though and if you didn't sign s thung I do not think they have a leg to stand on.
     
  15. TaylorChang

    TaylorChang Well-Known Member

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    CBA currently has a "beat rate campaign" which mean they will beat any other lender advertising rate by 0.01%. Say if you see the rate for 4.59% advertising with other lender, you can put that forward to your broker he/she can submit to CBA and get 4.58% for you.

    Back to your case, I think you should ask your broker what is the reason to charge you $330.
    Small amount of work fee maybe reasonable, but for a simple valuation with CBA is only cost $50 if didn't go ahead.
    Charging you without upfront disclosure fees and charges, i don't think is a good way to operate business.
     
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  16. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Don't ask them for evidence that they've incurred those costs, that justifies their position somewhat. Ask them to justify where you agreed (in writing) to pay any fees.
     
  17. b00gie

    b00gie Member

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    Thanks for all the reply everyone, really appreciate it

    I didn't sign anything for the broker, only provided documents about my financial situation.

    I was not informed of any costs that may be incurred if I asked for upfront valuation. Only was told that the broker "paid" with their own money for the valuation with cba (arranged via valex) after I told them that I am going with someone else.

    I have thus not paid the broker.
     
  18. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    This reminds me - the same thing happened to me many years ago before i was a broker myself. I went to a mortgage choice guy and when i decided i was not going ahead he billed for for a valuation which was supposedly done. Stupidly i paid him. But the mere act of him issuing an invoice meant i would never have went back to him as no mention of anything up front.
     
  19. dabbler

    dabbler Well-Known Member

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    I think he knows they wont be back, so trying to catch up for wasted time, can't say I blame people for that, bugger of a job if people just walk all the time.
     
  20. euro73

    euro73 Well-Known Member Business Member

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    well in that case, charge a refundable fee. Upfront. Clearly. Say, $500 for the consultation/work...refundable at settlement. If people walk, they have a little skin in the game and the broker hasnt gone uncompensated for their efforts. . If they dont walk, their end cost is zero...

    But it's not OK to pop surprise invoices on people, no matter what the business you're in.
     
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