NSW Corelogic Report - Valuation

Hey Guys,

I'm wondering how accurate the CoreLogic Report you order for a property are relative to the Valuation a bank like CBA will determin?

Any Mortgage brokers or people had an experience where the range quoted in the CoreLogic property report is the same or different from the valuation the Bank gave for a client or yourself?

For example, I have a property that I ordered a property report for from Corelogic (as part of my paid subscription) and it has a range $291k - $386k along with a target of $340k.

I am planning to have it refinanced and planning out my strategy to pull out equity but can I expect the Valuation to come back as $340k?

 

Most lenders have automated valuations for refinance now days (AVM).

It'll come back slightly differently through an AVM for each lender (assuming it meets requirements of an AVM). I've had examples where it has come back greatly different but usually comes back in line with a price in the Corelogic guide.

If you're looking to maximize the equity you want to pull out then the best way to do that is to engage a broker who can pull multiple lender AVMs and go from there.

 

AVM's work really well when there are lots of recent sales in a suburb of very similar type.

AVM's are virtually useless on unique properties with nothing much in the suburb that is comparable and the last sales of ones that were vaguely comparable were over 6 months ago. If AVMs could be used all the time, then valuers and buyers agents might be out of a job in respect of estimating a purchase price.
e.g. I just paid close to $1M for a property whose AVM was $865K and a registered valuer agreed with the price we were paying.

 

If you're worried about purchasing a property and the valuation being different from the purchase price, don't loose sleep over it. I've rarely experienced a problem with purchase valuations. When problems did occur, in almost every case there was something unusual about the property (development sites, off the plan, ultra high density, reality tv, etc).

If this is for refinance purposes, it can be touch and go. I've had both desktop valuations (using Corelogic) and valuers agree and disagree with Corelogic reports. Both up and down on the AVM results.