How to query a Valuation

Discussion in 'Loans & Mortgage Brokers' started by Carol M, 11th Aug, 2018.

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  1. Carol M

    Carol M Well-Known Member

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    We want to query a full valuation by Westpac (through JLL valuers) for Refinance
    on 2 houses on a dual occ block.
    Valuer completely ommitted a study from his description of 1st house to the bank.
    He also called a 3rd bedroom in 2nd house a sunroom, even tho it was under main roof, had its own door and was 2 x 4m long with correct ceiling height. Tenant probably did not have a bed or robe in there and may use it as a sunroom or formal dining room.
    Wonder if bedroom vs sunroom alters valuation by much?? It is silly that to call it a bedroom it must have a bed in it. And surely ommission of a study would detract from value quite a bit as well?.
    Can we challenge him on these 2 points through the bank? The banks call centre staff said the only option is to order a new valuation. But surely if valuer has made an error (in completely losing a study) we can ask for them to reassess original valuation??
    We realize chances are slim of changing this, but figure it is worth a shot, and should not have to pay for a full valuation for them to look at this again.
     
    Last edited: 11th Aug, 2018
    Carol M, 11th Aug, 2018
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes can challenge.
    Get your broker to organise it.
     
    Terry_w, 11th Aug, 2018
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  3. wylie

    wylie Moderator Staff Member

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    I've asked this type of thing once before and the valuer refused to budge. He clearly didn't appreciate us questioning his valuation. But it is worth trying. Nothing to lose.
     
    wylie, 11th Aug, 2018
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Comparable sales are going to still be needed to extend the valuation if there needs to be asignificant increasing val.

    Does the room have an external window ?

    Ta
    Rolf
     
    Rolf Latham, 11th Aug, 2018
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  5. Carol M

    Carol M Well-Known Member

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    Both rooms have good windows. Also gave them a list of comparable sales in area. Even counting it as 6 bedrooms + study, instead of 7 bedrooms has to give better value than 5 bedrooms they counted (3 + 2 + sunroom)
     
    Carol M, 11th Aug, 2018
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    K. So there are comparables with 7 Beds with similar other features you'd have a good chance of getting it reviewed.

    Depends if we are talking needing 20 k or 100 k to make it work

    Ta

    Rolf
     
    Rolf Latham, 11th Aug, 2018
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  7. wylie

    wylie Moderator Staff Member

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    This reminds me. I gave him some local equivalent sales, including the one next door, same block size, lesser quality house, but sold for more than his valuation on what was a newly renovated house we were trying to have valued. It was crazy. He didn't use the one next door which was sold within the time period he could have used.

    I suspect he thought because we were trying to tell him what to use, he left it out.

    Talk about "touchy".
     
    wylie, 11th Aug, 2018
    #7
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Valuers are human

    And subject to the same emotional things we all are

    I have some buyers or refinancers that want to micro manage the valuers process .

    Can become counter productive

    Ta

    Rolf
     
    Rolf Latham, 11th Aug, 2018
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  9. Carol M

    Carol M Well-Known Member

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    yeah, not many 6 bedders to compare to (on waterfront reserve too - that's why we gave him comparable sales). It was not a bad valuation (have had much worse over the years) but could have been a bit higher too, so it's worth a try to reassess and get it a bit higher.
     
    Carol M, 11th Aug, 2018
    #9
  10. wylie

    wylie Moderator Staff Member

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    I agree Rolf. But I'd asked before he came out and wasn't shoving valuations at him. He may have had other reasons for not using the one right next door but it seemed childish if his reason was that I'd done some homework for him.

    It was very important at the time that we get the valuation up. It didn't happen. But it didn't matter (thank goodness) in the end.

    I wouldn't bother doing it again.

    (And... to be honest, some valuations I've had offered as comparables over the years have seemed not very comparable at all.)
     
    wylie, 11th Aug, 2018
    #10
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    With some valuers it's bets to leave them fully to their own devices

    Challenge is identifying those humans

    Hard to do in a 1 minute intro.

    Most valuers don't mind it that much. But

    Ta

    Eolf
     
    Rolf Latham, 11th Aug, 2018
    #11
  12. housechopper2

    housechopper2 Well-Known Member

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    Are they two on the same title? If so, you have very little chance of overturning it.
     
    housechopper2, 12th Aug, 2018
    #12