House valuation

Discussion in 'The Buying & Selling Process' started by Brian84, 17th Nov, 2015.

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  1. Brian84

    Brian84 Well-Known Member

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    Not very chatty. And I just have a feeling for some reason. Hopefully I'm wrong
     
  2. Brian84

    Brian84 Well-Known Member

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    Well I just got the new val back from cba which was quick. It came back at $715k which is $15k more than st George gave us so we are really happy and surprised.
     
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  3. trinity168

    trinity168 Well-Known Member

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    How much did you pay for the valuation?
     
  4. Big Will

    Big Will Well-Known Member

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    Most likely nothing, some banks do up front vals (no cost to you).
     
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  5. trinity168

    trinity168 Well-Known Member

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    The reason I ask is our broker charges us for valuations done for First Mac ...

    Thanks!

    Additionally, if you had to pay another 150-300 in price of getting a valuation, and it coming out 15K higher is always good.
     
  6. Redom

    Redom Mortgage Broker Business Plus Member

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    Brokers can do free upfront valuations with a number of banks, e.g. CBA, St George, NAB, ANZ, Westpac, Macquarie, etc.

    These valuations may be desktop vals, kerbside or full vals, depending on the bank and parameters of the deal.

    With many of the smaller banks they charge the customer an upfront fee - this is to minimise the costs of unused valuations. This is the case with Firstmac.
     
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  7. Redom

    Redom Mortgage Broker Business Plus Member

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    Highlights the advantage and potential of valuer shopping. Upfront vals make it pretty easy to do. After a certain point (in most cases 2), there's little gain with each additional valuation, but multiple opinions can lead to differences.

    An extra 15k may not exactly be much, but when drawn out at 80% thats an extra $12k.

    That 12k leveraged as a deposit can stretch out purchase prices by up to 70k. If your previous budget was say $250k, you may be able to increase it to $320k (pending serviceability) with the extra $12k available as a deposit. Could possibly open up a lot more options when deposit base isn't that strong.

    Anecdotally, i've seen 20%+ differences on $1-1.5mill properties a few times last year.
     
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  8. Perthguy

    Perthguy Well-Known Member

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    A particular valuation can make a huge difference. When I went to refinance about a year ago, I got a low valuation on my Melbourne property. Switching to another lender and keeping an 80% LVR, would have meant kicking in $24k of non-borrowed funds to pay out the old loan. In the end I kept the old loan and my old lender ended up giving me a better interest rate than the new lender was going to give me :p

    Anyway, that property was sold within 12 months of the "valuation" for 30% more than the valuation. Supposedly this property went up 30% in a year. Not bad! :D

    Good stuff! This is the kind of valuation you want. :D
     
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  9. Brian84

    Brian84 Well-Known Member

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    Nothing my broker organised it for me. He is a champion.
     
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  10. Azazel

    Azazel Well-Known Member

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    Well there you go.
    Might not seem like much, but might be the difference between 1 or 2 cheapies.
     
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  11. dabbler

    dabbler Well-Known Member

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    Valuation for most banks will be with the view of how much can we sell it for tomorrow, or in a hurry.
     
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  12. Perthguy

    Perthguy Well-Known Member

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    I know there is a difference between a bank valuation and market value. But I find 30% very rich. The valuation was ridiculously low and the bank lost business over it. No skin off my teeth. I ended up better off! I got a lower interest rate by not moving to the new lender :D
     
  13. JK200SX

    JK200SX Well-Known Member

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    What about landscaping, external paving, concreting, retaining walls etc - do they add to the value in a val?

    Also,

    Lets say you had a PPOR that was valued 3yrs ago at 1 Million and lets say the 3yr % growth in the area was 14%. So, if you order a val with the same valuer, could you assume that the value would come in at 14% higher, eg $1,140,000? This is assuming that the house/amenities have been kept to the same standard.
     
  14. Inov8ive

    Inov8ive Well-Known Member

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    I am sure they can add value but it would really depend on the application. If it increases usable living space or enhances the appeal of said space then I would think it would. Overall presentation of the property would be increased so it would help but these areas are where you can easily over capitalise IMO. I am not a valuer though and this is merely my opinion from experience.

    To your second question, yes you could assume valuation would come in 14% higher! I see no reason why it shouldn't.
     
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  15. Azazel

    Azazel Well-Known Member

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    It's not rocket surgery.
     
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  16. tavinium

    tavinium Well-Known Member

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    This happened to me during last refinance exercise. The difference from various valuers/banks on the property in question was up to $85k! Wild stuff!

    The highest valuation was above my expectation by $40k and the lowest valuation was below my expectation by $45k. So law of averages I guess means my expectation is right on 'true market value'.
     
  17. Cia

    Cia Well-Known Member

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    I've had two valuations done by the same individual for different banking institutions {valuers specialise within regions}, within a month of each other and they were $30K different!!!
     
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  18. Azazel

    Azazel Well-Known Member

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    Woah. Did you do anything different in between?
    Did they forget?
     
  19. Cia

    Cia Well-Known Member

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    I didn't do anything to the property! It was at the end of 2014 - I suppose prices were climbing fast. He didn't forget my property - I showed it to him both times as I was living there. I asked him why he needed to inspect my property the second time. Price was around $700K.
     
  20. JDM

    JDM Well-Known Member

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    Although it's a good guide, it won't work like that. It will depend on the recent comparable sales as this is what the valuer must use. It would be quite dire if the valuation methodology is relying on past sales and then indexing (perhaps a remote area with few annual sales but even then I would think there are better valuation methodologies).