Do I have a right to see the banks valuation

hi
If you’ve had a property valuation by your bank / broker.

And that valuation has come back under valued, do you have a right to see that valuation (as I’ve only been verbally told the value) / challenge the valuation etc

Cheers

 

No. There is no right to see it. You can ask for a copy, which you may or may not get. I give my clients copies of any that I have done for them but some banks won't release.

You could ask for it to be challenged

 

Thanks people

 

Somewhere in all the agreements, banks state that the valuations are for their use, not the borrowers. Many (most?) even go so far as to say the valuation is not to be shared with the applicants.

I usually forward the valuation to the client as soon as I receive it.

 

Banks have always given me the figure. I had one come in low but got nowhere disagreeing with it so I stayed with the bank that valued it for heaps more

 

I recall a loan I applied for with CBA before I became a broker, about 20 years ago, they would not tell me what the valuation came back at, but would tell me the amount that I could borrow at 80% LVR.

 

You need to be proactive. This is what I do. I actually ask the bank manager for valuer's contact. I do my own research on similar properties that just sold, no more than 3 months, and present the valuer with my research report and expected value.
Sometimes it works, sometimes it doesn't but you need to act beforehand, not after the valuation was done!
Banks don't need to disclose but again it would be great if you are proactive, asking before that since you are paying for the valuation you expect at least to see it.

 

Agree, but they don't pay either!

 

It is the bank that contracts with the valuer so the borrower or mortgagor would have no right based on contract as they are not party to it. The bank charges a free, sometimes, for a valuation, but this still doesn't provide any rights unless the bank contracts with the borrower about it. It is just a reimbursement of an expense

 

Banks are normally little reluctant to provide copies. ..

Brokers are generally happy to share!.

Cheers,

 

Yet another item that banks are sly about regarding loans. Since they release vals to brokers, why not provide copy for applicants reference, why the roundabout that we have to ask from brokers? Surely every person waiting on val for the loan would like to know the valuer's result? Is this done so there is less ability for customer to immediately respond if they are not happy with a low val?

 

That's one argument I've heard for not providing a valuation. I'd like to think that if a valuer has done their job properly, then the report would provide evidence to support a result below the borrowers expectations (actually they always have evidence to support the result).

Truth is I just think the banks believe they'll get fewer problems by not sharing information.

 

If the borrower is dealing with a broker that generally means the borrower has no direct contact with the bank.

 

Thats probably why. But its a mindset that should be changed as lack of transparency can lead to some level of abuse/exploitation.

I guess most people dont bother too much and just try another lender.

 

Banks don’t want their staff wasting time challenging vals, or explain to clients how vals work etc.
brokers like wasting their time and although lenders preclude it, most share the val report with customers.
For brokers they can valuer shop, so get another opinion. Banks don’t have that alternative. Low val, deal dead. Move on.

 

If it is an upfront valuation, generally the broker will get it. If not, the lenders may or may not give it out.

 

I have been given copies of the valuer's report on my properties without any hinderance at all. I guess its all about which bankers you are with.