I bought a place last year for $205k, bank valuation came in at $175k. Real estate agent had a bit of a freak out at that as the house I put an offer on had a heap of interest and higher offers since I went under contract. There were very few sales of what was assessed as a 6 bed 2 bath house (most are pairs of 3 bed 1 bath on two titles but this was a duplex on one title so was assessed as a single house) so they had to go back to a housing trust sale from ages ago which was direct from government to tenant. I didn't argue with it, I just paid up the difference. On their valuations, this place has a double digit yield. Now they've done it again, on a place that is already seriously below the lowest recent sales in the area. I'm at a loss how they even came up with this, given there are lots and lots of recent sales in the area and most of those are around double my offer. There's one of a similar price, slope and condition but slightly over half the size. The only thing I can think of is if they have missed the fact that I am buying TWO 675sqm blocks of land and have taken a low value recent sale of a 780sqm block of land at similar price, and scaled it DOWN to one of my 675sqm ones not UP to a 1350sqm block. Otherwise I am utterly baffled at how my 1350sqm block of land is worth less than the lowest recent sale in the area of a similar 780sqm block in a town where most sales are around 500sqm and sell for half as much again or even double what I offered. Vacant land should be easier to get valuations on than houses, I would have thought. Sigh. Banks. Currently querying my bank contact and getting some local sales from the agent who, unsurprisingly, is horrified that the bank thinks 1350sqm blocks of land within towns in the Blue Mountains are worth $40k ... Turns out the mirror image block next door sold for $5000 more than I offered for my pair of blocks in 2014, obviously too long ago to factor into this valuation. A block of similar size a few doors down sold for more than double what I offered, also in 2014.