How do valuations work in a market like this?

Discussion in 'Loans & Mortgage Brokers' started by jaybean, 25th Feb, 2021.

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  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    The challenge for you and the valuer is the comparable sales methodology which is a standing order with panel valuers.

    if you cant find comp sales, then its not likely the valuer can either.

    Recent auction purchase val came back at 1000 k on a buy price of 1125.

    We couldnt really challenge the val, because there was ZIP even unsettled sales that would support the purchase.

    That can happen with sites for potential subdiv especially.

    ta
    rolf
     
    Rolf Latham, 6th May, 2021
    #21
  2. Phil_22

    Phil_22 Well-Known Member

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    I am hearing of risk rating 5's becoming common on valuations with regards to market segmentation and market direction, valuers are covering themsleves with the market on fire.
     
    Phil_22, 6th May, 2021
    #22
  3. Whitecat

    Whitecat Well-Known Member

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    A few weeks ago I had one come 150k under. Ouch. But at the auction there were 3 other parties in addition to me bidding at or above 30k below what it sold for. I.e. it was always going to sell 120k above the valuation figure, no matter what.

    Having a look at comparables though I kind of agree with the valuer to a degree. So what IS the true value? Will not know until more sales in the months ahead of similar properties I guess?
     
    Whitecat, 6th May, 2021
    #23
  4. DoingOK

    DoingOK Well-Known Member

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    I bought two ip's in the same month with the same lender a while back now. One came in just 20k under and the other was 80k over. Was happy but have no idea how either valuation was done as I had done a lot of comparison stuff before purchase.
     
    DoingOK, 8th May, 2021
    #24
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