Do I have a right to see the banks valuation

Haha no one likes that

 

I'm with ING and have a Mortgage Broker, just got a valuation done yesterday, my Broker emailed me the full report today done by Preston Rowe Paterson.

 

People work in Banks, a good relationship will go very far. Ive had banks tell me the val. Even though banks will offer a free val every year. Its not a waste to get your own val anyway to take shopping.

 

Keep in mind lenders will not accept a valuation you have commissioned yourself.

 

Absolutely, sorry if that was misleading. I meant it will cost you $500 so not alot in the scheme of things and will help you appreciate where the banks ‘fire sale’ price sits. It will also help with planning with brokers. Reading your own val has the benefit of educating yourself on how vals are done.

 

Hey peeps
If you’re trying to get updated vals for your properties, to help you plan your next move/equity position etc, What’s the best way to make this happen?

My mortgage broker says they won’t do any vals unless it’s for ‘new business’..

Can you not just say it’s for a ‘potential’ equity loan?

 

You can say what you like but the brokers contracts with the banks stipulate they only be ordered for loans.

Try getting estimates first, then decide on a lender and then have the Val ordered before loan submission

 

1. Has your broker confirmed you have the borrowing capacity to do what you're potentially looking to do?
If so, then ask them to get some desktop valuations or RP data reports for you - if they refuse then maybe it's time to find another broker?

 

From Banking Code of Practice 2019

When we will provide you with a copy of a valuation

90. Where we have charged you (or you have reimbursed us) for a valuation of a commercial or agricultural real property, we will provide you with a copy of that valuation and the related valuer instruction (except where enforcement proceedings have already commenced).

We may require you to acknowledge in writing that you accept our reasonable limitations on your use of the valuation before we provide it to you.

91. We will only appoint appropriately qualified and experienced valuers who are members of professional organisations which abide by a similar code of practice.

 

Even if you were given the val report, what would you do with it? The report is and only can be used for mortgage purposes for the specific intended recipient, not you the home owner. Further, the purpose of valuation will determine the value of that asset.

So the valuation came lower/higher than you expected, you are not a valuer. What you think is an unwarranted opinion with little to no weight.
Yes, you can do your own research and give logical thought out reasons why you think x is x, but at the end of the day, the value the valuer has placed is the only amount the bank is concerned, be it right or wrong.
Challenge it, if the valuer is dead wrong the report will get amended, but do note the valuer is not compensated for his time hence won't be bothered to change it, be it poorly presented challenge or unless his reputation is at stake (rare case, as valuation are often checked, if completed by a junior or an out of area valuer + other reasons).

What baffles me most is, when a lawyer tells you something about law, chance are you bank on it and trust his professional interpretation is correct and you won't challenge it, so why is it different to a valuer? There is a host of behind the scene thought process of a valuer that goes into a report, be it short or long form report. The value the valuer put on is an educated opinion and interpretation of markets based off experience and local area knowledge.
Maybe its due to the readily available information on domain + realestate.com.au which gives a false sense of property knowledge? *Shrugs

his = her

 

Desktop or kerbside assessment are not a reliable indicator of value for any asset, and I wouldn't expect an accurate assessment which would impact your borrowing capacity, I'm pretty sure the desktop & kerbies are not helpful for people that are highly geared. Maybe a broker/bank background person can elaborate.

In short, consider a desktop/kerbside a 'rough' guide of value.

 

It could be used for cgt purposes and stamp duty purposes

 

Take a mtg val to OSR? Have to admit haven't hearnt that one before. I hope you're not suggesting that to your clients..

If the OSR accepts this then that's proof our government sector is operated by clowns.

I mean what happens for a cgt purpose retro val? Or is the assumption, the val date so happens to be when the date of inspection occurred?

 

Some release these directly to the broker, others don't. It is usually based on who 'orders' the valuation itself. If through the loan process, the bank orders the val, usually you won't get to see it. If a broker orders it, than you'll likely see it as the val goes directly to the broker.

As more and more lenders jump onto valex & upfront valuation systems, more lenders are allowing these to be viewed by clients (or at least, most brokers provide this to their clients).

But in answer to your question - do you have a 'right' to see it - I dont think so.

 

I am a broker and you've just confirmed my point, it's not a full val but can give a rough idea of equity in a property to see if it's even close to where it needs to be for you to pull equity etc.
Then check servicing before proceeding with the equity releases and full valuations (if necessary)
And guess what, sometimes the desktop can be higher than a full val so can work in your favor.

 

The thread was revived by Jeremy86 who asked the question below, nothing to do with challenging the valuation or simply asking for a copy of a completed valuation report... that was the Orignal Post from 2018... Jeremy86 is trying to get an idea of current value of existing properties to plan the next equity release etc.

 

If banks released valuation reports the valuers would spend all day fending off calls and emails from every property expert explaining why their purple curtains add so much more value. And the abutting train lines, petrol station, and HV towers don't affect at all.
Oh and here are some comparables; newer, bigger, on the water, in a different suburb

 

The valuer has a bank as a client, not the customer. Even if the customer pays for the valuation.