Do banks use RP Data for desktop Vals?

Discussion in 'Loans & Mortgage Brokers' started by beachgurl, 28th Mar, 2016.

Join Australia's most dynamic and respected property investment community
  1. beachgurl

    beachgurl Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,320
    Location:
    Sydney
    One of my cousins wants to do a top up for renovations. I looked on RP Data and it values her property based on the 2012 purchase price, even though the suburb has had over 50pc growth in two years (as per RP Data info on the Val report).

    Do lenders use RP Data for their desktop Vals? FYI the property is in the lower blue mountains. Very low turnover there so Val is based on 2014 sales comparables.
     
    beachgurl, 28th Mar, 2016
    #1
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,171
    Location:
    03 9877 3000
    In a round about way, yes. The source of the data most lenders use is usually the same.

    Don't assume that it will give you the same result though, I've seen plenty of instances when the lenders desktop was quite different from an RP Data report.
     
    Peter_Tersteeg, 28th Mar, 2016
    #2
    legallyblonde likes this.
  3. legallyblonde

    legallyblonde Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    858
    Location:
    TAS
    My limited experience has been that the RP Data value is VERY similar to the bank value... Banks just seem to round down a little.
     
    legallyblonde, 28th Mar, 2016
    #3
  4. Corey Batt

    Corey Batt Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    2,091
    Location:
    Adelaide, SA
    Quite a few lenders use a tweaked version of RP Data, others use APM or Residex. I wouldn't rely on them coming up with the same figures at all as there can be large variances, especially if there isn't strong active market activity.
     
    Corey Batt, 28th Mar, 2016
    #4
  5. Steven Ryan

    Steven Ryan Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,656
    As above, similar source but varying results.

    Literally an hour ago just ran an RP Data and a CBA desktop on the same property.

    25% price difference. Same data source.
     
    Steven Ryan, 28th Mar, 2016
    #5
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,980
    Location:
    Canberra, Brisbane and Sunshine Coast
    Some will. Cba are awesome in this space - if lvr is sub 80 and they'll usually go off a desktop val
     
    Jamie Moore, 28th Mar, 2016
    #6
  7. beachgurl

    beachgurl Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,320
    Location:
    Sydney
    Thanks everyone. Looks like she'll need to go down the full val path.
     
    beachgurl, 28th Mar, 2016
    #7
  8. Leewei

    Leewei Well-Known Member

    Joined:
    6th Jan, 2016
    Posts:
    66
    Location:
    Singapore
    Have you tried checking on the nsw globe?
     
    Leewei, 28th Mar, 2016
    #8